NMI Holdings, Inc. (NASDAQ:NMIH) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 01, 2018 • 05:00 pm ET
continue to drive margin expansion and strong mid-teens return on equity that exceed our cost of capital.
With that, I'll turn it over to Brad for his closing remarks.
Thank you, Adam. Before we turn to Q&A, I'd like to offer my perspective on some of the recent and significant announcements impacting our industry. I have worked in the mortgage insurance market for 25 years and started National MI with a specific vision and purpose.
We had and continue to have two key goals. Supporting our lender customers to help borrowers attain the dream of sustainable home-ownership and delivering attractive risk adjusted returns for our shareholders across the cycle. The environment we operate in today is fundamentally different and I believe more attractive than it was at any point in the past. Recent industry developments don't diminish the opportunity that is available for National MI or our ability to deliver results for our customers, borrowers and shareholders.
National MI has made a significant investment in developing and deploying a modern IT platform that allows us to efficiently underwrite or validate a significant majority of the loans we ensure. We can evaluate risk in a more granular fashion with greater speed and increased precision and at a lower unit cost than ever before. We have been equally successful in establishing a modern risk transfer framework and funding profile. The solutions available to National MI in the capital and reinsurance market allows us to manage the aggregate risk in our portfolio and funds our economic and regulatory needs across a broader and deeper capital spectrum and at a lower cost than ever before.
We have a long-term positive view on the US housing market and the quality of the regulatory guardrails that have been established in the mortgage finance system. Within that framework, we believe we are unique and how we have deployed technology to efficiently evaluate and manage risk, while maintaining the lowest absolute expense footprint in the industry. These capabilities combined with the ability to manage both risk and cost of regulatory capital through reinsurance and capital market solutions positioned National MI to deliver on its dual mission for many years to come.
With that, I'll ask the operator to come back on so we can take your questions.