RICHMOND, Va., July 11, 2018 /PRNewswire/ -- Genworth Mortgage
Insurance, an operating segment of Genworth Financial, Inc. (NYSE:
GNW), today released the results of its survey of 105 mortgage
industry professionals conducted at this year's Mortgage Bankers
Association's National Secondary Market Conference & Expo in
New York City. Notably, 79 percent
of respondents cited both rising inflation as a trigger of higher
interest rates (49 percent) and the re-emergence of alternative
mortgage products (30 percent) as the two biggest challenges facing
the mortgage market in 2018. An additional 17 percent cited the
loosening of credit standards, and four percent cited excess
liquidity in the mortgage market.
"Rising interest rates and inflation, when combined with today's
inventory shortage, are accelerating home price appreciation,
causing some lenders and consumers to explore less-tested methods
for financing home purchases," said Rohit
Gupta, President and CEO, Genworth Mortgage Insurance.
"Despite this, private mortgage insurance is experiencing another
strong year, particularly among first-time homebuyers, as the
majority of consumers and lenders still prioritize financing
solutions backed by tested, well-capitalized businesses. We
encourage prospective homebuyers to continue educating themselves
on all available options prior to pursuing homeownership, and to
ensure that their financing method is as sustainable as it is
affordable."
Additional data shows that the majority of industry executives
believe removing legal uncertainty for lenders originating FHA
loans (44 percent) and lower compliance cost for lenders (30
percent) are the best ways to improve access to credit in the
mortgage market. Additional responses included adoption of
alternative credit scores (14 percent) and more ambitious
affordable housing goals for the GSEs (12 percent).
Further findings below highlight industry sentiment on the role
of compensating factors in underwriting, navigation advancements in
loan processing platforms, and GSE Day One Certainty tools:
Compensating factors should play a role for borrowers
above 45-DTI
Industry professionals universally agree
(92 percent) that given the recent rise in Debt-to-Income (DTI)
limits, compensating factors should play a role for an above 45-DTI
applicant. Only eight percent said that high DTI limits will
facilitate more credit access, allowing more individuals to achieve
homeownership without adding risk to the market.
Industry calls for easily customizable dashboards for LOS
platforms
The majority of respondents (54 percent)
identified easily customizable dashboards for organization-wide
production management as the top service they want integrated into
Loan Origination System (LOS) platforms. Respondents also noted the
ability to share screens and data with a customer (21 percent) and
the ability to upload lists of closed loan data to active
commitments (20 percent) as desired services.
Industry has started to incorporate GSE Day One Certainty
tools
Sixty-eight percent of respondents said that they
have begun to integrate or have already fully integrated GSE Day
One Certainty tools into their processes. However, about one third
of respondents (32 percent) report that they have still not begun
using third-party data validations on DU/LP loans.
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 Financial, Inc.