RALEIGH, N.C., July 14, 2009 /PRNewswire-FirstCall via COMTEX/ -- Genworth Financial, Inc. (NYSE: GNW) said today that the recent decision by the Obama Administration to expand eligibility for its Making Home Affordable program will make an estimated 44% additional loans covered by its U.S. mortgage insurance business eligible for modification in connection with the borrower's refinancing. In all, nearly 530,000 loans will be eligible for modification.
The new government eligibility guidelines allow borrowers current on their payments and with a maximum loan-to-value (LTV) ratio of 125% to refinance their loans under the Administration's Home Affordable Refinance Program (HARP). Previously, the program's LTV limit was 105%. Existing MI coverage on these loans would be concurrently modified.
"Increasing the LTV ceiling for the Home Affordable program will allow us, and others in the industry, to help many more borrowers refinance into a loan they can afford. That's especially important in states that have been hardest hit by home price declines," said Mark Goldhaber, senior vice president, Affordable Housing & Government Business Development for Genworth's U.S. mortgage insurance business. "Genworth is proud to support this program, and we look forward to helping as many families as possible stay in their homes."
According to Genworth, the new guidelines will make an additional 65% of its insured loans in the hard hit "Sand States" (Arizona, California, Florida and Nevada) eligible for modification.
Genworth implemented the government's Making Home Affordable programs soon after they were announced. Early data show mortgages it insures that were refinanced under HARP had an average 1.5 point interest rate decrease, and an average 13.5 % monthly mortgage payment decrease.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 global financial security company. Genworth has more than $100 billion in assets and employs approximately 6,000 people with a presence in more than 25 countries. Its products and services help meet the investment, protection, retirement and lifestyle needs of more than 15 million customers. Genworth operates through three segments: Retirement and Protection, U.S. Mortgage Insurance and International. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. 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.