Genworth is committed to being the leading provider of capital and risk management solutions for the residential mortgage market. We offer a suite of insurance offerings that can be tailored to meet our lender customers’ specific needs.
Our products leverage our:
- Extensive local experience (more than 50 years) in managing mortgage credit default risk;
- Global expertise including in the U.S, Europe, Canada and other countries; and
- Strong relationships with global reinsurers.
Our offerings include:
- Traditional LMI
- Variations on traditional LMI
- Portfolio LMI
- Aggregate excess of loss insurance
- Bespoke structured capital and risk management solutions.
Traditional LMI cover
Our traditional LMI offering assists lender customers to reduce the risks and costs associated with higher LVR lending (generally less than 20% deposit)
It protects lenders in the event that a borrower defaults on a home loan and there is a shortfall in the loan after applying the sale proceeds from the secured property.
Variations on traditional LMI
- Micro markets LMI
- LMI offering for lenders seeking cover on lower LVR loans (greater than 20% deposit loans) relating to residential properties located in higher risk market segments.
- Risk share including quota share, top cover and bottom cover
- Loan level losses are in effect shared between the lender and Genworth
- Structured so that the lender customer takes the first loss, second loss or shared loss position
- Designed to protect lender customers in a mild or moderate stress environments.
- Limited cover including fixed term and fixed LVR cover
- Provides cover for the period in which the borrower has the highest propensity to default
- Cover can be limited by time or by LVR
- Enables lender customers to manage loss volatility in a benign or mild stress environment.
- Timely payment cover
- Timely payment cover is insurance protection we provide to lender customers covering the timely payment of instalments on residential property loans prior to the sale of the security property.
Portfolio LMI cover
Genworth provides portfolio LMI cover for lender 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 structured capital and 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.
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