GE Policy on Loans for Properties in Delcining/Distressed Markets

Genworth Mortgage Insurance: Policy on Loans for Properties
in Declining/Distressed Markets – Update for March 31, 2008
Due to depreciation of real estate values nationally and at localized levels, and
in accordance with prudent underwriting standards, Genworth Mortgage
Insurance has established limitations for loans in Declining/Distressed markets.
Effective with MI applications received on or after March 31, 2008, Genworth
will limit loans on properties in Declining/Distressed markets as follows:
• Maximum LTV/CLTV = 95%
• A Minus loans are ineligible
• 95% LTV with credit score <> 90% are ineligible
• Construction Permanent financing loans are ineligible
• Florida Only – Second Homes are ineligible
The above Declining/Distressed Market restrictions apply when:
• The property is located in a market identified as Declining/Distressed
on Genworth’s Declining/Distressed Market List
• The appraisal report indicates other than stable or increasing values
• The lender has a policy or other knowledge which considers the
property to be in a declining/distressed market
Enforcement of Policy
Loans subject to Genworth’s Declining/Distressed Market Policy are ineligible
for insurance by Genworth. Genworth has provided online tools at
mortgageinsurance.genworth.com to determine whether a property is
located on Genworth’s Declining/Distressed Market list and whether it may be
subject to restrictions.
Updates To Policy
Genworth will review and update its Declining/Distressed Market Policy and List
as information becomes available and as developments in local markets merit.
All updates will be posted on our website, mortgageinsurance.genworth.com
and distributed via Genworth Mortgage Insurance Sales