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Sunday, February 28, 2010

Canadian Mortgage Broker News - Genworth involved in mortgage rule changes

Canadian Mortgage Broker News - Genworth involved in mortgage rule changes

Genworth involved in mortgage rule changes


Although there has been confusion over whether the new mortgage rules imposed by the federal government last week would affect only CMHC-backed mortgages, Genworth Financial Canada has said the new rules will also apply to mortgages it insures.

"We were involved heavily in the consultation process for the new criteria changes," said Genworth president Peter Vukanovich in an interview with CMP. "We don't feel there is any housing bubble, but we think it's important to maintain a safe and stable market and we think we played a role in ensuring underwriting processes are indicative of a prime-quality loan."

Vukanovich went on to say that because Genworth Financial Canada is backed by the government, the company is affected by the new rules.

Both Genworth Financial Canada and AIG United Guaranty have a 90 per cent federal government guarantee.