Commitments and Contingencies PMIERs As an approved insurer , NMIC is subject to ongoing compliance with the PMIERs established by each of the GSEs ( italicized terms have the same meaning that such terms have in the PMIERs, as described below). The PMIERs establish operational, business, remedial and financial requirements applicable to approved insurers . The PMIERs financial requirements prescribe a risk-based methodology whereby the amount of assets required to be held against each insured loan is determined based on certain loan-level risk characteristics, such as FICO, vintage (year of origination), performing vs. non-performing ( i.e. , current vs. delinquent), LTV and other risk features. In general, higher quality loans carry lower charges. Under the PMIERs, approved insurers must maintain available assets that equal or exceed minimum required assets , which is an amount equal to the greater of (i) $400 million or (ii) a total risk-based required asset amount . The risk-based required asset amount is a function of the risk profile of an approved insurer's net RIF, assessed on a loan-by-loan basis and considered against certain risk-based factors derived from tables set out in the PMIERs to gross RIF, which is then adjusted on an aggregate basis for reinsurance transactions approved by the GSEs, such as with respect to our ILN Transactions and QSR Transactions. The aggregate gross risk-based required asset amount for performing, primary insurance is subject to a floor of 5.6% of performing, primary adjusted RIF , and the risk-based required asset amount for pool insurance considers both factors in the PMIERs tables and the net remaining stop loss for each pool insurance policy. By April 15th of each year, NMIC must certify it met all PMIERs requirements as of December 31st of the prior year. We certified to the GSEs by April 15, 2019, that NMIC was in full compliance with the PMIERs as of December 31, 2018. NMIC also has an ongoing obligation to immediately notify the GSEs in writing upon discovery of a failure to meet one or more of the PMIERs requirements. We continuously monitor NMIC's compliance with the PMIERs. Leases We have two operating lease agreements related to our corporate headquarters and a data center facility for which we recognized operating ROU assets and lease liabilities of $6.4 million and $7.4 million in "Other assets" and "Other liabilities," respectively, on our condensed consolidated balance sheet as of December 31, 2019 . As of December 31, 2019 , we did not have any finance leases. We recognize ROU assets and lease liabilities in connection with the adoption of ASU 2016-02, Leases (Topic 842). ROU assets and lease liabilities are established based on the estimated present value of lease payments over the relevant lease term. We estimate a discount rate for each lease based on our estimated incremental borrowing rate at the commencement date of the relevant lease. ROU assets obtained in exchange for new operating lease liabilities for the year ended December 31, 2019 were $8.1 million . The following table provides a summary of our ROU asset and lease liability assumptions as of December 31, 2019 : Weighted-average remaining lease term 3.2 years Weighted-average discount rate 6.21 % Cash paid on our operating lease liabilities for the year ended December 31, 2019 was $2.5 million . Lease expenses recognized on our operating lease liabilities for the year ended December 31, 2019 were $2.2 million . Future payments due under our existing operating leases as of December 31, 2019 are as follows: Years ending December 31, (In Thousands) 2020 $ 2,537 2021 2,609 2022 2,574 2023 462 Total undiscounted lease payments 8,182 Less effects of discounting (780 ) Present value of lease payments $ 7,402 Lease expense is recorded in underwriting and operating expenses on the consolidated statements of operations. Our existing operating leases have original terms that range from three to five years . The lease for our corporate headquarters includes an option to renew for an additional five years at prevailing market rates at time of renewal. We have not included this renewal option in our calculation of minimum lease payments as it is not reasonably certain to be exercised. As of December 31, 2018, the future minimum lease payments as accounted for prior to our adoption of ASU 2016-02, Leases (Topic 842) were as follows: Years ending December 31, (In Thousands) 2019 $ 2,346 2020 2,417 2021 2,489 2022 2,564 2023 463 Totals $ 10,279 Lease expense for our corporate headquarters was $2.1 million and $1.5 million for the years ended December 31, 2018 and 2017 respectively before the adoption of ASU 2016-02.