Item 7.01. Regulation FD Disclosure
The table below sets forth, as of the date and for the period indicated, the
following operating statistics of Essent Guaranty, Inc. ("Essent Guaranty"), the
primary US mortgage insurance subsidiary of Essent Group Ltd. (the "Company"):
(i) insurance in force, and (ii) the number and percentage of mortgage loans
insured that were reported to have missed at least two consecutive payments of
principal and interest, including forbearance-related delinquencies as a result
of COVID-19. The information regarding new delinquencies and cures is reported
to Essent Guaranty from loan servicers. Default reporting, particularly on a
monthly basis, may be affected by several factors, including the date on which
the report is generated and transmitted to Essent Guaranty, updated information
submitted by servicers and by the timing of servicing transfers.
Insurance in Force as of June 30, 2020 ($ in millions) $ 174,646
Rollforward of Insured Loans in Default (count)
Balance, May 31, 2020 27,353
Plus: new defaults 13,579
Less: cures (2,813 )
Less: claims paid (48 )
Less: rescissions and denials, net (3 )
Balance, June 30, 2020 38,068
Percentage of Loans in Default as of June 30, 2020 5.19 %
Based on the level of delinquencies reported to us, the insurance-linked note
transactions that Essent Guaranty has entered into to date (the "ILNs") became
subject to a "trigger event" as of June 25, 2020. The amortization of principal
of the notes issued by the unaffiliated special purpose insurers in connection
with the ILNs is suspended during the continuation of a trigger event.
The information set forth in this Item 7.01 of this Current Report on
Form 8-K shall not be deemed "filed" for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise
subject to the liabilities of that section. The information in this Item 7.01 of
this Current Report on Form 8-K shall not be deemed to be incorporated by
reference in any filing under the Securities Act of 1933, as amended, or
the Exchange Act, except as expressly set forth by specific reference in such
filing.
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