Genworth provides a suite of risk and capital management solutions to lender customers in the Australian residential mortgage market.
Our products leverage our:
- extensive local experience in managing mortgage credit default risk;
- global expertise; and
- strong relationships with international reinsurers and capital markets participants.
Our offerings include:
Traditional LMI cover
Genworth provides LMI to assist our customers to reduce the risks and costs associated with higher LVR lending. By reducing the risk the lender will incur a loss, lenders may provide access to finance at a higher LVR (less than 20 per cent deposit) than would otherwise be available. Traditional LMI is generally purchased at the time the home loan is originated.
LMI is insurance that protects the lender in the event that the borrower defaults on their home loan. If the security property is required to be sold as a result of the default, the net proceeds of the sale may not always cover the full balance outstanding on the loan. Should this be the case, the lender is entitled to make an insurance claim to Genworth for the reimbursement of any shortfall. Where a claim for loss is paid to a lender, Genworth may seek recovery from the borrower, or any guarantor, for any shortfall amount.
Portfolio LMI cover
Genworth provides portfolio LMI cover for customers looking to insure a pool of loans at the same time. Portfolio LMI is generally purchased by the lender to cover lower LVR loans (greater than 20 per cent deposit) that were originated more than six months earlier. Portfolio LMI is commonly used for credit enhancement on a securitisation transaction, or for other risk transfer and capital purposes.
Bespoke risk management solutions
Genworth can structure bespoke risk management solutions providing tailored portfolio cover across both high and low LVRs that meet a lenders specific risk management need. The establishment of an offshore insurance entity based in Bermuda provides our customers with access to global reinsurance markets that may be otherwise unavailable.
Micro market LMI cover
A risk management solution for lenders seeking cover on higher risk low LVR market segments (micro markets). Micro market LMI is generally purchased at the time the home loan is originated.
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