Genworth is eliminating LTV’s over 90% (previously it allowed BFS applicants to borrow up to 95% LTV)
Genworth said it will accept applications for the above programs (under the old guidelines) until April 17.
Collectively, these are significant changes for Genworth. So far, the only explanation we’ve seen from them is that the moves were due to “changes in the Canadian economy and housing markets.” We’re hoping to get a bit more clarity next week on the “why” factor.
One thing seems clear: If CMHC keeps it’s own guidelines as-is, Genworth will likely lose additional market share to the country’s number one insurer.
Sidebar: When evaluating an applicant against the above credit scores, Genworth will “average the scores pulled from both credit bureaus for each borrower, and the recommended score requirement will apply to all borrowers on the application.”