BofA Cuts Ratings on Three Mortgage Insurers After Trump Order

BofA Securities downgraded Enact Holdings (ACT), Essent Group (ESNT) and NMI Holdings (NMIH) after President Donald Trump signed a housing order aimed at lowering homeownership costs. BofA tied its rating changes to policy overhangs related to the order.

The BofA move follows J.P. Morgan’s earlier downgrade of Enact to Underweight from Neutral. J.P. Morgan tied its action to Enact’s premium valuation relative to peers and limited near-term upside; TokenPost covered the earlier Enact downgrade.