Genworth says that last July’s insured mortgage rule changes “will likely reduce the annual residential mortgage insurance” market for high loan-to-value mortgages “by approximately 15%, as compared to the 2012 market size.”
In a report yesterday, National Bank Financial said that Genworth “wrote 16% less new insurance on high loan-to-value (LTV) mortgages than it did a year ago, mainly as a result of new mortgage insurance rules introduced by the federal government last July that effectively eliminated insurance for refinance transactions.”
In 2012 Genworth wrote $20.4 billion of new insurance on low loan-to-value mortgages. That compares to $4.2 billion in 2011. This is a direct result of “more low loan-to-value (bulk) mortgage insurance opportunities,” says the company. Those opportunities were created in large part when its #1 competitor, CMHC, started pulling back from the bulk insurance business in late 2011.