Press Releases |
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Statement from Genworth Financial on First Time Buyer summit
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Angel Mas, President Mortgage Insurance Europe |
Genworth Financial, was pleased to be among the industry figures invited to the summit on First Time Buyers chaired by Housing Minster Grant Shapps (15th February 2011).
Angel Mas, president of Genworth’s European Mortgage Insurance business commented:
“It was very encouraging to be part of a productive meeting on the problems facing first time buyers. There were plenty of ideas and clear recognition that this is an issue that needs to be addressed. Whilst all participants agreed that there is no “silver bullet”, there was consensus around the need to get things started.
“At of the heart of the matter is the capacity to save for a deposit – and the size of the deposit required in the current market. Therefore, high loan-to-value (LTV) mortgages are needed to enable homeownership for first time buyers. Currently, lenders are taking a cautious approach in this segment due to the risk associated with high LTVs and the punitive capital requirements for this type of mortgage.
“But there are solutions that could help – and Mortgage (MI) was discussed at the summit as one of them. MI is an effective way for banks to transfer some of their default risk, and by accepting this risk, specialist insurers such as Genworth take an active role in setting and monitoring prudent lending criteria. In return for this additional scrutiny, we would like to see a move towards incentives for lenders through less onerous capital requirements for high LTV loans.
“This framework already exists elsewhere in the world, is recognized by international regulators and is credited for keeping the flow of credit open to young borrowers, with a good profile, in the good times as well as the bad.
“We welcome the leadership shown by the Minister and his sense of urgency. Focused action on the solutions identified can only help ease the current barriers to homeownership.”
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About Genworth Financial
Genworth Financial, Inc. (NYSE:GNW) is a leading Fortune 500 global financial security company. Genworth hasmore than $100 billion in assets and employs approximately 6,500 people with a presence in more than 25 countries. Its products and services help meet the investment, protection, retirement and lifestyle needs of more than 15 million customers. Genworth operates through three segments: Retirement and Protection, International and U.S. Mortgage Insurance. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. For more information, visit Genworth.com. From time to time Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of Genworth.com.
For further information, please contact:
Guy Genney
Guy.genney@genworth.com
+442083803786
For further information on Genworth Financial: www.genworth.co.uk
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