Private mortgage insurance (MI) can help sellers by allowing buyers to purchase homes with lower down payments, increasing market size and qualifying more borrowers. MI promotes homeownership for first-time homebuyers. Over 40 million Americans will reach typical first-time homebuyer age over the next decade. National MI offers competitive rates for borrowers with credit scores over 740 and loan-to-value ratios up to 97%, expanding access to conventional loans. National MI also supports new home construction with products like construction-to-permanent loans.

1. © 2016 Copyright. National MI
For general informational purposes only. Not to be construed as legal or tax advice. Please refer to
www.nationalmi.com for a complete description of mortgage insurance terms and requirements.
Conventional
Wisdom—Think
Past FHA with
Private MI
August 2017
NAIHBR

2. | 2
Why MI?
Mortgage Insurance Can Help You:
• Sell More Homes Faster
• Increase Market Size
• Qualify More Borrowers
• Increase Purchasing Power
The power of conventional lending with private MI can play a role in
designing new communities:
• $424,100 / 97% LTV / 620 FICO available in ALL markets
• FHA loan limits lower in many areas
Serving First Time Homebuyers:
• MI promotes home ownership for first-time homebuyers
• Through April 2017, 47.8% of mortgages backed by Fannie and
Freddie went to first-time homebuyers
• MI provides the credit enhancement needed for lower down
payment buyers
• MI reduces the time it takes to save a down payment from
approximately 14 years to under 6 years

3. 3
2,750,000
3,250,000
3,750,000
4,250,000
4,750,000
 First-time homebuyers represent a significant future opportunity
 Average age of a first-time homebuyer is 34 years old
• More Americans will enter the typical first-time homebuyer age nearly every year over the next
decade
• Over 40 MM Americans will reach the age of an average first-time homebuyer over the next decade
Highly Favorable Demographic Trends
Source: U.S. Centers for Disease Control and Prevention; NAHB Special Studies “Characteristics of Homebuyers”
U.S. Births by Year
Growing first-time
homebuyer
population
Confidential

4. | 4
Supporting New Construction
To Support New Home Construction, National MI Has Expansive
Construction to Permanent Guidelines
• C2P Guidelines Identical to Purchase Guidelines
• 97% LTV to $424,100 is available in ALL markets
• Loan Amounts to $1.5 MM
• 12 Month MI commitment
• The option to activate your MI Commitment at loan closing
so you can be covered during construction
• Immediate MI coverage with no additional (or updated)
verifications
National MI has partnered with leading housing analyst, John
Burns, to produce the National MI Market Snapshot
• Market trends, demographics, etc. provided quarterly
• Relevant data for both builders and lenders
• Key information for today’s decision makers

5. National MI Rates
Changing the Industry
| 5
National MI was the first to utilize
the PMIERs requirements to
create new opportunities for high
credit quality borrowers,
introducing:
• Improved rates for 740+ credit scores
• Improved rates for ≤ 20 year terms
• Eliminated surcharge for Rate/Term
Refinance
• Eliminated surcharge for loans >$424,100
• Transparent, stable, and TRID-friendly
rates
National MI was the first to apply this
philosophy to both Borrower Paid and
Lender Paid MI.
Rates may not be available for all credit scores and LTV’s due to the application of
underwriting guidelines. Additional coverages are available. Rates may not be available in
all states.

6.  Lower monthly payments for
certain FICO® tiers and LTVs
 Higher loan limits, with loans
insurable up to $1.5 million
 Less cash to close
 Lower down payments on certain
programs
 More purchasing power
 No upfront fees required, total net
saving is higher in the upper
FICO® tiers
 100% gift funds allowed
 Faster path to closing more loans
 Flexible options: various payment
plans
 More flexible for cancellation
Private MI Advantages over FHA
Get Conventional Wisdom
| 6

7. With National MI’s pricing, we estimate that over 70% of FHA loans could
be better served as conventional loans with private MI.
An Opportunity to grow business
| 7
LTV
85% 90% 95% 97%
760+
740 -759
720 - 739
700 - 719
680 – 699
660 – 679
640 – 659
620 – 639
CREDITSCORE
42% of FHA Loans, would be better served
with conventional
+30% of FHA Loans, if using an Affordable program
would be better served with a conventional loan
FHA is better
LOs continue to give business to FHA that
should be going to private MI.
WHY? HABIT

8. Conventional vs. FHA
Monthly Advantage and LPMI Single Premium Rates
| 8
With either National MI’s MONTHLY ADVANTAGE RATES or LPMI Singles,
borrowers can significantly reduce their monthly payment vs. an FHA
insured loan …
LTV
85% 90% 95% 97%
760+
740 -759
720 - 739
700 - 719
680 - 699
CREDITSCORE
Conventional is better.
FHA is better.
LTV
85% 90% 95% 97%
760+
740 -759
720 - 739
700 - 719
680 - 699
CREDITSCORE
Conventional is better.
FHA is better.
30Y Mortgages: Conventional with
Mortgage Insurance vs FHA
Monthly Savings with Monthly Advantage BPMI Rates
30Y Mortgages: Conventional with
Mortgage Insurance vs FHA
Monthly Savings with LPMI SINGLE Rates
With Monthly Advantage BPMI rates or LPMI Singles, conventional loans can now compete
with FHA for high FICO® 97% LTV loans.
* Assumptions :
$200K Purchase Price; FHA Loan Interest Rate = 4.000%; ;Conventional (pre-LLPA) = 4.25% as of 2/13/2017
National MI’s Pricing makes MI competitive in 97% LTV space

9. GSE Affordable Programs vs. FHA
Monthly Advantage and LPMI Single Premium Rates
| 9
GSE Affordable Programs* with National MI’s Monthly Advantage or
LPMI Single rates can further enhance conventional competitiveness
with FHA:
LTV
85% 90% 95% 97%
760+
740 -759
720 - 739
700 - 719
680 - 699
660 – 679
640 - 659
CREDITSCORE
Conventional is better.
FHA is better.
LTV
85% 90% 95% 97%
760+
740 -759
720 - 739
700 - 719
680 - 699
660 – 679
640 - 659
CREDITSCORE
Conventional is better.
FHA is better.
30Y Mortgages: Conventional with
Mortgage Insurance vs. FHA
Monthly Savings with HomeReady® Monthly Advantage
Rates
30Y Mortgages: Conventional with
Mortgage Insurance vs. FHA
Monthly Savings with HomeReady® LPMI Single
* Assumptions :
$200K Purchase Price; FHA Loan Interest Rate = 4.000%; ;Conventional (pre-LLPA) = 4.25% as of 2/13/2017
Fannie Mae’s HomeReady® and Freddie Mac’s Home Possible® provide for more flexible underwriting, lower
loan fees, and reduced MI coverages to assist with affordable lending.
HomeReady® is a registered trademark of Fannie Mae.
Home Possible® is a registered trademark of Freddie Mac.
Affordable Products + National MI’s Pricing makes Monthly MI more competitive in 97% LTV space

10. Private MI is Still Cancellable!
And Remember…
| 10
Homeowners Protection Act (HoPA):
• Borrower Paid Private Mortgage Insurance, by law, is automatically
cancelled when the loan reaches 78% LTV, based on the original
amortization schedule. Loan must be a 1-unit Primary Residence or 2nd
Home for the auto-cancellation terms
• Borrowers can request cancellation at 80% LTV
• Some investors (Fannie Mae, Freddie Mac) will allow cancellation based on
a new property appraisal, subject to LTV/ seasoning requirements
• FHA cannot be cancelled in less than 11 years, and in many cases FHA
insurance cannot be cancelled at all!
Time to Cancellation
LTV New FHA Private MI at 78% LTV
≤90% 11 years 5 – 7 years
>90% N/A 7 – 10 years
Assumptions used for above illustrations: purchase transactions, 30-year fixed rate, primary residence. FHA premium rates and
cancellation information is from publicly available data. See Mortgagee Letter 2013-04, dated 1/31/2013, and www.fha.gov for latest
available FHA information. National MI underwriting guidelines apply. Mortgage insurance is provided by National Mortgage Insurance
Corporation.