When do I report a loan that is in default?
All insured loans are to be reported on a monthly basis where arrears is greater than or equal to 60 days. Reporting must continue each month thereafter until the arrears either fall under the 60-day threshold, have been cured by way of loan payout or a claim has been paid.
How do I report a defaulting loan?
A monthly report is to be submitted outlining all insured loans within the reportable period (eg loans in arrears 60 days or greater). Genworth must receive the report within 14 days of the preceding calendar month.
Is there a particular format required to report defaulting loans?
Genworth has a standard arrears reporting template that we ask all lenders to complete.
What do I need to do if legal action is required on a defaulting loan?
Legal action should commence as required in line with the legislative requirements for the property. The action taken should be reported in your monthly report. If you are unsure of the action taken, or problems arise during the process, consult with your Genworth Loss Mitigation consultant.
What should I do if legal action is proceeding to the point where gaining possession of a property is likely?
Ensure that your Loss Mitigation consultant is aware of the situation and kept up to date with the action taken on the property.
I have taken possession of a property. Who should I contact and what information is required?
Formal possession must be advised within 14 days of it being obtained. Contact your Genworth Loss Mitigation consultant and they will advise you of Genworth’s standard requirements. Ensure that the property is secure.
We are selling a property that has come into possession. Do I need to contact Genworth to discuss sale options?
From the time possession has been obtained, regular contact with your Genworth Loss Mitigation consultant should be maintained. You may require approval to certain costs associated with the sale and the listing or reserve prices of the insured property.
What do I need to do if a property that was sold under MIP sale circumstances has settled and a loss has occurred?
You need to advise your Genworth Loss Mitigation consultant that settlement has occurred and confirm whether a claim will be lodged.
How do I receive payment if a loss is incurred on a property?
A claim form must be completed and submitted with any ancillary information to the Claims Adjudication team for assessment before payment will be made. The claim for can be submitted via eLMI Portal or email at email@example.com
What happens when a claim has been paid?
Genworth will attempt recovery of the loss from the borrower as an unsecured creditor. No further action is required by you, as the lender.