RICHMOND, Va., April 24, 2018 /PRNewswire/ -- Genworth Mortgage
Insurance, an operating segment of Genworth Financial, Inc. (NYSE:
GNW), today announced reductions to its national Monthly and Single
Premium borrower-paid mortgage insurance (BPMI) rate plans and
introduced two rate adjustors—Co-Borrower and Debt-to-Income (DTI)
ratio—both specific to the Monthly BPMI plan. Genworth's long track
record of pricing transparency in its rate plans is also a key
component of today's announced changes. The price reductions and
new adjustors will take effect on Monday,
June 4, 2018.
"Our goal is to implement prudent pricing solutions that
increase homeownership opportunities for qualified borrowers and
deliver attractive returns to our shareholders," said Rohit Gupta, President and CEO of Genworth
Mortgage Insurance. "Today's announcement further emphasizes our
desire to address evolving affordability needs in a clear and
transparent manner, and more granularly differentiate performance
of the loans we insure."
Genworth's lower rates on Monthly and Single Premium BPMI rate
plans give lenders more flexibility to help borrowers, particularly
as the housing market strengthens and interest rates climb. The
added differentiation by number of borrowers and DTI ratio aligns
pricing with observed performance trends at a time when the market
mix of these attributes is changing. These new Monthly BPMI rate
adjustors provide improved guidance to better manage borrower risk.
For example, loans with co-borrowers will see an MI rate decrease
of approximately 18 percent from current rates, and loans for
borrowers with a DTI ratio greater than 45 percent can expect an MI
rate increase of approximately eight percent from current rates.
These changes result in an overall rate decrease for Genworth's
monthly plan of about 10 percent.
"Genworth is committed to remaining competitively priced in the
market and refining our pricing across key risk characteristics,"
said Gupta. "Introducing these transparent rates balances these
business objectives following the recent reduction to the federal
tax rate and the current favorable macro-economic conditions. Our
new pricing maintains similar mid-teen returns, which are above our
cost of capital and internal hurdle rates. We look forward to
implementing our changes in June and to continued innovation that
drives our business forward."
About Genworth Financial
Genworth Financial, Inc.
(NYSE: GNW) is a Fortune 500 insurance holding company committed to
helping families achieve the dream of homeownership and address the
financial challenges of aging through its leadership positions in
mortgage insurance and long term care insurance. Headquartered
in Richmond, Virginia, Genworth
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. From time to time, Genworth's
publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth
Mortgage Insurance Australia Limited, separately release financial
and other information about their operations. This information can
be found at http://genworth.ca and
http://www.genworth.com.au.
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SOURCE Genworth Mortgage Insurance