RALEIGH, N.C., July 8, 2020 /PRNewswire/ -- Genworth
Mortgage Insurance ("Genworth MI"), an operating segment of
Genworth Financial, Inc. (NYSE: GNW), today announced the
completion of an excess of loss reinsurance transaction with a
panel of reinsurers covering a portion of the loss tier on subject
loans written between 2009 and 2019 book years, effective
April 1, 2020. The transaction
provides reinsurance coverage in excess of the PMIERs capital
requirements as of March 31, 2020 in
response to an anticipated higher level of delinquencies as a
result of COVID-19. As such, the company expects up to $300 million of additional PMIERs capital credit
when required assets are in the covered tier, subject to GSE
approval as part of their evaluation.
Additionally, Genworth MI commented on the release of amendments
to the Private Mortgage Insurer Eligibility Requirements (PMIERs)
by Fannie Mae and Freddie Mac under the guidance of the Federal
Housing Finance Agency (FHFA) on June 29,
2020, in light of the impact of the COVID-19 pandemic on the
US housing market. As of March 31,
2020, Genworth's U.S. mortgage insurance business had
available assets of approximately 142% of the required assets under
the current set of PMIERs requirements, or more than $1.1 billion above the required levels. If
these amended requirements had been effective as of March 31, 2020, Genworth estimates that its
sufficiency ratio would not have been materially impacted by the
revised capital treatment. Any difference would be primarily due to
the application of the capital relief multiplier for non-performing
loans during the COVID-19 crisis. The effective date of the amended
requirements was June 30, 2020.
"We appreciate Fannie Mae, Freddie Mac and the FHFA's
responsiveness in providing clarity to the mortgage insurance
industry on the PMIERs treatment of delinquencies in
forbearance—and I'm pleased that the strength of Genworth MI's
balance sheet and our business performance will allow us to
continue helping more families get into and stay in their homes,"
said Rohit Gupta, CEO of Genworth's
U.S. mortgage insurance business. "I'm proud of the work we've done
to not only build a strong financial foundation, but also enhance
our flexibility during this uncertain time."
About Genworth Mortgage Insurance
Genworth Mortgage
Insurance, an operating segment of Genworth Financial, Inc. (NYSE:
GNW), is headquartered in Raleigh, North
Carolina, and operates in all 50 states and the District of Columbia. Genworth Mortgage
Insurance works with lenders and other partners to help people
responsibly achieve and maintain the dream of homeownership by
ensuring the broad availability of affordable low down payment
mortgage loans. Genworth has been providing mortgage insurance
products and services in the U.S. since 1981.
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SOURCE Genworth Mortgage Insurance