Genworth MI Canada Inc. has announced that it won\u2019t be following in tightening mortgage insurance eligibility.<\/p>\n
In a statement earlier this week, Genworth said that it does not see a need for it to change its policies regarding debt-service ratio limits, minimum credit scores, or down-payment requirements<\/p>\n
\u201cGenworth Canada believes that its risk management framework, its dynamic underwriting policies and processes and its ongoing monitoring of conditions and market developments allow it to prudently adjudicate and manage its mortgage insurance exposure, including its exposure to this segment of borrowers with lower credit scores or higher debt-service ratios,\u201d said Stuart Levings, the company\u2019s president and CEO.<\/p>\n
An analysis by RateSpy said that the insurer\u2019s underwriting practices \u201care prudent enough to cherry-pick low-risk borrowers who happen not to meet CMHC\u2019s criteria.\u201d<\/p>\n
\u201cGenworth approved less than half the number of borrowers with GDS ratios over 35% than it did in 2011,\u201d RateSpy said. \u201cNot all non-CMHC compliant borrowers will be scooped up by the private insurers. Hence, there will be incrementally fewer borrowers who do not qualify for default-insured mortgages come July 1.\u201d<\/p>\n
Market observers have roundly criticized the CMHC\u2019s recent announcement, saying that the policy adjustments would add uncertainty to the already-volatile national economy.<\/p>\n
\u201cIf the government proceeds with this, the dampening of housing activity will worsen the economic pressures, further impairing the economy,\u201d economist Will Dunning told Bloomberg.<\/p>\n
\u201cOn the surface, it is remarkably poorly timed,\u201d said Jean-Francois Perrault, chief economist at Bank of Nova Scotia. \u201cRestricting access to credit in a period of economic need is certainly an unconventional policy approach.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Genworth MI Canada Inc. has announced that it won\u2019t be following in tightening mortgage insurance eligibility. In a statement earlier this week, Genworth said that it does not see a need for it to change its policies regarding debt-service ratio limits, minimum credit scores, or down-payment requirements \u201cGenworth Canada believes that its risk management framework, […]<\/p>\n","protected":false},"author":5,"featured_media":27283,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8764"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8764"}],"version-history":[{"count":2,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8764\/revisions"}],"predecessor-version":[{"id":22747,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8764\/revisions\/22747"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/27283"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}