RICHMOND, Va., Sept. 16, 2013 /PRNewswire/ -- Genworth U.S. Mortgage Insurance (USMI), a unit of Genworth Financial Inc. (NYSE: GNW), today announced it will reduce rates and expand its Simply UnderwriteSM guidelines to eliminate nearly all overlays and ensure ease of use for customers that deliver loans using the automated underwriting systems (AUS) of the government-sponsored enterprises (GSEs).
The credit policy changes, effective for mortgage insurance applications received on or after September 16, 2013, closely align Genworth's requirements with those for loans approved by Desktop Underwriter® or Loan Prospector®, the automated underwriting systems of the Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac), respectively.
As a result, loans up to 97 percent loan-to-value, with Fair Isaac and Company (FICO) credit scores as low as 620 that are approved by the GSE systems also are likely to be approved for mortgage insurance coverage by Genworth USMI. Lenders only have to verify that the borrower contributed a minimum of three percent of the home purchase price from their own funds.
"The expanded Simply Underwrite guidelines offer customers our most competitive and flexible rates and guidelines, making it easier for them to close more loans, faster," said John Clifford, USMI's senior vice president of commercial operations. "These adjustments allow lenders to offer affordable low down payment financing to help creditworthy Americans pursue their dreams of homeownership, and position Genworth USMI to pursue prudent growth."
Additionally, Genworth USMI will offer lower rates and guideline flexibility for monthly and single-premium insurance coverage for mortgage insurance applications received on or after October 1, 2013 (subject to state approvals). The changes include:
- lower rates for most borrowers with FICO scores of 740 or higher for single-premium plans;
- lower rates and adjusters for borrower- and lender-paid nonrefundable single-premium plans for borrowers with FICO scores below 660;
- lower base rates and adjusters for borrowers with FICO scores less than 660 for monthly premium plans; and
- eliminating adjusters for two-unit properties on monthly premium plans.
The latest changes also ensure that credit union and housing finance agency customers continue to have access to rates and guidelines that meet their unique needs. Simply Underwrite guidelines were introduced in February 2013 as part of the Simplify MISM program dedicated to saving lenders time and boosting their business. Simplify MI extends Genworth USMI's commitment to offer lenders additional value beyond a competitive price.
Full details on these guideline changes are available in the Underwriting Guidelines manual at mortgageinsurance.genworth.com. The new rates also will be accessible to customers using the desktop and mobile versions of Rate ExpressSM, Genworth USMI's rates and comparisons tool.
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.
SOURCE Genworth Financial, Inc.