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Minority Home Lending Up Sharply in 2005

Mortgage Lending Industry Diversity Conference Reveals African American, Hispanic, and Asian Home Buying Growth Outpaces White Growth

WASHINGTON, Sept. 28 /PRNewswire-FirstCall/ -- Minority buyers made up the fastest growing segment of all new home purchase mortgages in 2005, according to a new analysis released today at the Second Annual Mortgage Lending Industry Diversity and Emerging Markets Conference & Career Fair in the Washington, D.C. region.

"The 2005 Minority Home Buying Surge" report finds that the percentage increase for all minority loans in "high volume areas" combined was three times greater in the top 20 mortgage growth metropolitan areas than for White households, and the increase for Hispanic, African American, and Asian loans was up to five times greater. The report was issued by Genworth Mortgage Insurance and Compliance Technologies (ComplianceTech), the co-sponsors of the diversity conference.

"We are now witnessing the positive effects of the growth in immigrant households who want to own a piece of the American Dream," said Michael Taliefero, Managing Director of ComplianceTech. "While immigration is part of the story, the lower homeownership rates among African Americans and Hispanics represent pent up mortgage demand that is starting to be filled."

Using newly released 2005 Home Mortgage Disclosure Act (HMDA) data, the new report, prepared by ComplianceTech, analyzes the change in minority home purchase loans between 2004 and 2005 in 388 metro areas. Minority borrowers had a greater percent change than Whites in 320 of those markets.

"Despite the nationwide cooling in home buying, minorities represented a significantly larger percentage of new purchases in 2005 than they did in 2004," said Kevin Schneider, president of Genworth Financial's U.S. mortgage insurance business. "We're determined to help close the homeownership gap, and it's good to see that progress is being made."

When ComplianceTech conceived the conference over two years ago to boost minority homeownership, Genworth Financial was the first to partner with the minority-owned company to develop and stage the Mortgage Lending Industry Diversity Conference series in 2005. Topics to be addressed this year include minority workforce participation; reducing the minority homeownership gap; the role of GSEs; market segmentation; prime/sub-prime lending; and ways in which state and local governments are boosting homeownership.

The 2005 Minority Home Buying Surge report focuses on high volume metro areas (areas with greater than 1,000 loans per year for all minorities, and greater than 400 loans for Hispanics, 500 loans for African-Americans, and 200 loans for Asians) and shows minorities are making homeownership progress in these markets. The full report also examines low volume and very high volume areas.

The report provides a series of "Top 10 lists" of metro areas and the 2004-05 rates of change in mortgage lending for all minorities and specific minority groups; Hispanic, African American, and Asian (see attached). Below is a snapshot for each minority category. The full analysis includes lists for the top 20 metro areas for each category. It is available at http://www.mortgageindustrydiversity.com.

Highlights of the report for all minorities include:

The high volume metro area with the greatest change in all minority lending was Ocala, Florida, with a 90% increase over 2004 levels for minorities -- 7.5 times greater than the 12% increase in home purchase loans for Whites in that metro area. In order, the top five markets for all minority home buying are Ocala, FL; Lakeland, FL; Cape Coral-Fort Myers, FL; Boise City-Nampa, ID; and Killeen-Temple-Fort Hood, TX.

Highlights of the report for Hispanics include:

The 2005 percentage increase in mortgage loans for Hispanics was 4.7 times greater than that for White borrowers among the top 20 high volume metro areas with at least 400 Hispanic loans. The market with the greatest growth in Hispanic home buying from 2004 to 2005 was Ocala, Florida, with a 97% increase -- 8 times greater than the 12% increase in home purchase loans for Whites in that metro area. In order, the top five markets for Hispanic home buying growth are Ocala, FL; Lakeland, FL; Cape Coral-Fort Myers, FL; Port St. Lucie- Fort Pierce, FL; and Scranton-Wilkes Barre, PA.

Highlights of the report for African Americans include:

Home purchase loans in 2005 for African Americans increased at a rate 4.8 times the rate for White homebuyers for the top 20 metro areas with at least 500 African-American loans. The market with the greatest growth in African American home buying from 2004 to 2005 was Lakeland, Florida, with a 86% increase -- 3.2 times greater than the 26.7% increase in home purchase loans for Whites in that metro area. In order, the top five high volume markets for African American home buying growth are Lakeland, FL; Ocala, FL; South Bend- Mishawaka, IN-MI; Cape Coral-Fort Myers, FL; Killeen-Temple-Fort Hood, TX.

Highlights of the report for Asians include:

Among the top 20 metro areas with the greater than 200 Asian loans in 2005, the percent change for Asians on home purchase loans was 5 times greater than the 2005 change rate for White home purchase borrowers. The top metro area for Asian home buying growth in this category was Albuquerque, NM, which experienced a 177% increase over 2004 - 12.8 times greater than the 13.9% increase in home purchase loans for Whites in that metro area. In order, the top five high volume markets for Asian home buying growth are Albuquerque, NM; Lubbock, TX; Lakeland, FL; Ocala, FL; Phoenix-Mesa-Scottsdale, AZ.

About Compliance Technologies

Compliance Technologies is a Washington D.C. based emerging mortgage markets and lending compliance consulting firm. LendingPatterns.com is a trade name of ComplianceTech.

About Genworth

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 24 countries. For more information, visit http://www.genworth.com.

**Top 10 lists for all minorities and population segments follows.

                Top 10 Growth Markets for Minority Home Buying
 This information was issued by Genworth Financial, Inc. and ComplianceTech.

    All Minorities                    % Growth      % White     Minority/White
                                                     Growth      Growth Ratio
    1 Ocala, FL                          90.4%        12.1%           7.5
    2 Lakeland, FL                       87.9%        26.7%           3.3
    3 Cape Coral-Fort Myers, FL          76.6%        14.6%           5.3
    4 Boise City-Nampa, ID               66.7%        37.9%           1.8
    5 Killeen-Temple-Fort Hood, TX       54.9%        32.3%           1.7
    6 Port St. Lucie-Fort Pierce, FL     53.7%         9.5%           5.6
    7 Yuba City, CA                      53.0%         0.8%          63.6
    8 Orlando-Kissimmee, FL              52.2%        17.3%           3.0
    9 Myrtle Beach-Conway-North Myrtle
      Beach, SC                          52.2%        35.3%           1.5
    10 Jacksonville, FL                  51.5%        16.3%           3.2
    TOTAL FOR TOP 20 MSAs                                             3.0


    African American                  % Growth      % White       AA/White
                                                     Growth     Growth Ratio
    1 Lakeland, FL                       86.6%        26.7%           3.2
    2 Ocala, FL                          81.6%        12.1%           6.7
    3 South Bend-Mishawaka, IN-MI        64.6%        -1.3%          49.7
    4 Cape Coral-Fort Myers, FL          60.3%        14.6%           4.1
    5 Killeen-Temple-Fort Hood, TX       53.8%        32.3%           1.7
    6 Palm Bay-Melbourne-Titusville, FL  44.6%         0.7%          63.7
    7 Jacksonville, FL                   42.4%        16.3%           2.6
    8 Port St. Lucie-Fort Pierce, FL     42.4%         9.5%           4.5
    9 Cambridge-Newton-Framingham, MA    38.3%        -0.4%          95.8
    10 Wilmington, DE-MD-NJ              38.1%         3.4%          11.2
    TOTAL FOR TOP 20 MSAs                                             4.8

    Hispanic                          % Growth      % White     Hispanic/White
                                                     Growth      Growth Ratio
    1 Ocala, FL                          97.1%        12.1%           8.0
    2 Lakeland, FL                       83.0%        26.7%           3.1
    3 Cape Coral-Fort Myers, FL          82.3%        14.6%           5.6
    4 Port St. Lucie-Fort Pierce, FL     65.6%         9.5%           6.9
    5 Scranton-Wilkes-Barre, PA          64.6%         4.9%          13.2
    6 Killeen-Temple-Fort Hood, TX       63.0%        32.3%           2.0
    7 Charleston-North Charleston, SC    58.1%        22.8%           2.5
    8 Fayetteville-Springdale-Rogers,
      AR-MO                              57.5%         1.2%          47.9
    9 Boise City-Nampa, ID               57.3%        37.9%           1.5
    10 Gainesville, FL                   57.1%        13.4%           4.3
    TOTAL FOR TOP 20 MSAs                                             4.7


    Asian                              % Growth     % White      Asian/White
                                                     Growth      Growth Ratio
    1 Albuquerque, NM                   177.4%        13.9%          12.8
    2 Lubbock, TX                       133.7%        -3.2%          41.8
    3 Lakeland, FL                      123.9%        26.7%           4.6
    4 Ocala, FL                         110.5%        12.1%           9.1
    5 Phoenix-Mesa-Scottsdale, AZ        97.1%        14.5%           6.7
    6 Boise City-Nampa, ID               96.4%        37.9%           2.5
    7 Myrtle Beach-Conway-North Myrtle
      Beach, SC                          94.7%        35.3%           2.7
    8 Orlando-Kissimmee, FL              92.3%        17.3%           5.3
    9 Salt Lake City, UT                 82.6%        23.5%           3.5
    10 Hagerstown-Martinsburg, MD-WV     75.2%         9.3%           8.1
    TOTAL FOR TOP 20 MSAs                                             5.0

Methodology: This analysis uses Home Mortgage Disclosure Act (HMDA) data from 2004 and 2005. It examines 320 of 388 Metropolitan Statistical Areas (MSAs) in the U.S. and sets a minimum amount of new mortgage originations (home purchases) to be considered "high volume" and included in this analysis.

All Minority: High Volume MSAs (2005 Loans > 1,000) with the greatest change in minority 1st lien, home purchase loans over 2004. African-American: High Volume MSAs (2005 Loans > 500) with the greatest change in minority 1st lien, home purchase loans over 2004. Hispanic: High Volume MSAs (2005 Loans > 400) with the greatest change in minority 1st lien, home purchase loans over 2004. Asian: High Volume MSAs (2005 Loans > 200) with the greatest change in minority 1st lien, home purchase loans over 2004.

SOURCE Genworth Financial, Inc.

CONTACT: Terry Souers of Genworth Mortgage Insurance,
work: +1-919-846-4459,
cell: +1-919-622-2511