Genworth Mortgage Insurance (MI), a division of Genworth Financial Inc., has released detailed information and resources to help customers make a smooth transition to its new master policy being implemented later this year.
The new master policy will improve process transparency, provide clarity of coverage, and offer customers clear steps and timelines for managing claims and resolving disputes. It was developed after extensive consultation with the Federal Housing Finance Agency (FHFA), along with government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, to ensure that loans insured under the new Genworth Master Policy will be eligible for sale to the GSEs.
A key aspect of the new master policy is its clear language on the responsibilities of mortgage insurers, loan originators and servicers, the company states in a press release.
The new master policy also spells out an improved approach to rescissions. Genworth already offers customers relief from rescission concerns (including appraisal valuation) if a borrower makes 36 months of timely payments, and now also will offer rescission relief after a minimum of 12 months of timely borrower payments to customers who agree to have Genworth review and verify information in loan files soon after submission.
‘The new master policy further strengthens the contribution private mortgage insurance makes to a robust and durable housing finance system,’ says John Clifford, senior vice president of commercial operations for Genworth MI, in the release. ‘We recognize there will be impacts to some customers' established processes, procedures and systems. Our top priority is to provide resources and support to help customers identify areas that might require their attention, before the new policy takes effect.’
All mortgage insurers are required to introduce their own version of a new master policy for insured loans to be eligible for sale to the GSEs.
Genworth MI expects that the new master policy will be effective no earlier than July. Customers will receive a copy of the new master policy and any endorsements before the effective date. The final effective date will be set based on several factors, including state insurance department approvals and coordination with the GSEs. The effective date will be communicated to customers and posted on the Genworth MI website.