Genworth Mortgage Insurance announces BPMI rate adjustments
Genworth Mortgage Insurance recently announced that it will lower its national monthly and single premium borrower-paid mortgage insurance (BPMI) rate plans starting June 4.
Also, the company introduced two rate adjustors specific to the monthly BPMI plan -- co-borrower and debt-to-income (DTI) ratio
"Our goal is to implement prudent pricing solutions that increase homeownership opportunities for qualified borrowers and deliver attractive returns to our shareholders," Rohit Gupta, president and CEO of Genworth Mortgage Insurance, said. "Today's announcement further emphasizes our desire to address evolving affordability needs in a clear and transparent manner, and more granularly differentiate the performance of the loans we insure."
By lowering its monthly and single premium BPMI rates and offering the new rate adjustors, Genworth hopes to help borrowers as the housing market improves and interest rates climb.
"Genworth is committed to remaining competitively priced in the market and refining our pricing across key risk characteristics," Gupta said. "Introducing these transparent rates balances these business objectives following the recent reduction to the federal tax rate and the current favorable macro-economic conditions. Our new pricing maintains similar mid-teen returns, which are above our cost of capital and internal hurdle rates. We look forward to implementing our changes in June and to continued innovation that drives our business forward."