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Genworth Mortgage Insurance, a subsidiary of Genworth Financial, Inc., recently announced that it has standardized and simplified its Borrower Paid Mortgage Insurance (BPMI) premium structure.
The company stated that the new BPMI rate card provides the clearest path forward for mortgage originations that require mortgage insurance.
The new BPMI pricing takes effect April 4, 2016.
“We took a hard look at recent pricing trends and realized we needed to recalibrate,” said Rohit Gupta, President and CEO, Genworth Mortgage Insurance. “In doing so, we’re able to provide greater granularity on our pricing while at the same time generate returns that are expected to be in the low to mid-teens in aggregate and to align with the risk-based capital requirements under the Government Sponsored Enterprises’ Private Mortgage Insurer Eligibility Requirements."
Genworth’s updated rate card features reduced rates across all loan-to-value ratios for borrowers with credit scores of 740 or higher and results in weighted-average rates that are consistent with its existing card given the current mix of business. The changes also enable Genworth to remain competitive with government-backed insurance provider, the Federal Housing Administration (FHA).
“We were very thoughtful with our new pricing approach so as to not considerably disrupt the amount of loans insured by our business versus the FHA. Our goal today is, and always has been, to encourage the use of private capital and ensure balance in the government’s role in the housing market,” Gupta noted. “This move makes it easier for customers to do business with us. Growing our customers’ business, as well as our own, is what we aim to do."
