RICHMOND, Va., Nov. 5, 2013 /PRNewswire/ -- Lenders increasingly
will need to understand how to value homes that are built or
renovated using "green" or sustainable building methods, according
to the latest video released today by Genworth Mortgage Insurance
(MI), the Raleigh, NC-based unit
of Genworth Financial Inc. (NYSE: GNW).
Adam Johnston, chief appraiser
for Genworth MI, said housing industry participants expect a
significant increase in green activity. "In 2011 about 17 percent
of residential construction was green homes, according to a
National Association of Home Builders study conducted with McGraw
Hill Construction. By 2016 green homes are expected to be 29 to 38
percent of the market by value, possibly reaching about
$114 billion of activity," said
Johnston. He said Genworth MI is studying the green market to
better understand what it means to home buyers and the housing
industry.
Genworth created the video to help its lender partners and
others begin to understand considerations in valuing green homes.
"While not all markets show signs of people paying measurably more
for many of the common items we would classify as green, we do see
an improvement in recognition of that area," said Johnston."As we
gain greater understanding of the green features and benefits that
drive value, those and other factors may influence how we
underwrite borrowers and value homes." For example, the lower
utility and maintenance costs that result from incorporating
well-designed energy-saving and sustainable features can make both
new and existing homes more affordable for owners over the long
term, he said.
Johnston noted that there isn't a standard definition for
features that make a new or existing home green. He said Genworth
MI's view includes sustainable construction practices with minimal
waste, use of energy and water-efficient appliances, and
retrofitting homes to add items like energy efficient windows and
insulation. He added that Genworth MI is closely following efforts
to develop education, standardization, measurement and verification
guidelines that ultimately may allow homeowners to reap the
benefits of green design in the context of responsible lending.
In the video, Johnston also describes Genworth's approach to
establishing the value of the mortgages it insures. "One thing we
know is that markets change and will continue to change. We have
lots of tools to measure those changes to see what's happening,
both now and what's likely to happen in the future. That type of
information is valuable in understanding risk."
Johnston serves on the Board of Trustees of The Appraisal
Foundation, is a SRA-designated member of the Appraisal Institute,
and is a Certified Residential Appraiser in several
states.
About Genworth Financial
Genworth Financial, Inc.
(NYSE: GNW) is a leading Fortune 500 insurance holding company
dedicated to helping people secure their financial lives, families
and futures. Genworth has leadership positions in offerings that
assist consumers in protecting themselves, investing for the future
and planning for retirement -- including life insurance, long term
care insurance, and financial protection coverages -- and mortgage
insurance that helps consumers achieve home ownership while
assisting lenders in managing their risk and capital.
Genworth operates through three divisions: U.S. Life Insurance,
which includes life insurance, long term care insurance and fixed
annuities; Global Mortgage Insurance, containing U.S. Mortgage
Insurance and International Mortgage Insurance segments; and the
Corporate and Other division, which includes the International
Protection and Runoff segments. Products and services are offered
through financial intermediaries, advisors, independent
distributors and sales specialists. Genworth, headquartered in
Richmond, Virginia, traces its
roots back to 1871 and became a public company in 2004. For more
information, visit genworth.com. From time to time, Genworth
releases important information via postings on its corporate
website. Accordingly, investors and other interested parties are
encouraged to enroll to receive automatic email alerts and Really
Simple Syndication (RSS) feeds regarding new postings. Enrollment
information is found under the "Investors" section of
genworth.com.
Related Link:
Green Home Valuation Trends
Video with caption: "Green Home Valuation Trends-Genworth MI".
Video available at: http://www.youtube.com/watch?v=DgxMcSQX_9M
SOURCE Genworth Financial, Inc.