Low Down Payment Loan Solution Helps Drive Homeownership
RICHMOND, Va., April 26 /PRNewswire-FirstCall/ -- Genworth Financial
(NYSE: GNW) said today that Michigan-based Flagstar Bank had begun offering
Genworth's HomeOpeners(sm) PaymentPlus, a low down payment mortgage solution
designed to help consumers buy homes sooner and provide them with added
mortgage payment protection in the event they become unemployed.
HomeOpeners(sm) PaymentPlus provides a lower monthly payment than
traditional mortgage insurance, most combination loans or FHA loans. It also
provides the added benefit of involuntary unemployment insurance at no
additional cost to the borrower. Policyholders receive two years of
involuntary unemployment protection that pays principal, interest, taxes and
insurance up to $2,000 for up to six months. The coverage includes
unemployment due to layoffs, strikes or lockouts, as well as other
unemployment.
"We're happy to be working with Flagstar to give homebuyers an attractive
alternative to combination loan products," said Lewis Fain, senior vice
president, Marketing and Strategic Development for Genworth Financial's
mortgage insurance segment. "With it, lenders will be able to qualify more
borrowers to buy the homes of their dreams."
"Our partnership with Genworth Financial is another example of Flagstar's
efforts to provide innovative solutions for both borrowers and lenders," said
Steve Brooks, an executive vice president at Flagstar Bank. "Genworth's
PaymentPlus product is an exciting addition to our many options for borrowers
who have less than 20 percent to put down toward the purchase of a home."
The industry's only single premium mortgage insurance product that
includes involuntary unemployment protection, HomeOpeners(sm) PaymentPlus
meets four key needs of the low down payment borrower: it lowers monthly
payments, can be tax-deductible*, builds equity faster than combination loans,
and is easy to cancel. Cancellation follows standard procedure under the
Homeowners Protection Act of 1998. In addition, the product is fully
refundable, which may provide money to the borrower upon cancellation.
Both Fannie Mae and Federal Home Loan Banks have agreed to purchase
HomeOpeners(sm) PaymentPlus loans.
"HomeOpeners(sm) PaymentPlus involuntary unemployment insurance sets it
apart from other low down payment solutions," Fain said. "It gives Flagstar
an opportunity to stand out in a highly competitive market by delivering a
valuable benefit to borrowers at no added cost. Reducing losses from
borrowers' inability to make payments due to involuntary unemployment it
provides peace of mind for both Flagstar and its borrowers."
The cost of the mortgage payment protection coverage for HomeOpeners
PaymentPlus is paid by General Electric Mortgage Insurance Corporation,
Genworth Financial's mortgage insurance business, which also underwrites the
mortgage guaranty portion of the coverage. The involuntary unemployment
insurance coverage is underwritten by a third party.
About Flagstar Bancorp
Flagstar Bancorp (NYSE: FBC) is the second largest independent banking
institution headquartered in Michigan. Flagstar operates 124 banking centers
in Michigan and Indiana and 112 home loan centers in 26 states and
correspondent offices across the country. Flagstar is one of the largest
originators of residential mortgage loans in the United States. For more
information, visit http://www.flagstar.com .
About Genworth Financial
Genworth (NYSE: GNW) is a leading insurance holding company, serving the
lifestyle protection, retirement income, investment and mortgage insurance
needs of more than 15 million customers, and has operations in 22 countries,
including the U.S., Canada, Australia, the U.K. and more than a dozen other
European countries. For more information, visit http://www.genworth.com.
*A tax advisor should be consulted for matters of tax deductions.
SOURCE Genworth Financial
CONTACT: Terry Souers, Vice President, Public Relations, Mortgage
Insurance of Genworth Financial, +1-919-846-4459, terry.souers@genworth.com
