U.S. Mortgage Insurance Segment
A volatile mortgage market created strong demand for our U.S. Mortgage Insurance products in 2007, and the trend is continuing. As loan standards become more conservative, homebuyers making low down payments increasingly are turning from “piggy back” mortgages with fast rising adjustable rates to the safety and security of fixed-rate loans with mortgage insurance.
Our long-standing commitment to rigorous underwriting and strong risk management provides a strong foundation on which to manage through the current housing environment. Thanks to a predominantly prime-based insured loan portfolio, our loss ratio was the best in the industry in 2007. While loss pressure will continue during 2008, our captive reinsurance agreements will provide important protection against increasing losses in subsequent years as we position Genworth for income growth.
First-time and low- to middle-income homebuyers, our core market, appreciate the added value we provide, like unemployment insurance and discounts on home-related products and services. We will continue to help lenders serve these customers better, making low down payment loans possible by insuring them against borrower default.
Our long-standing commitment to rigorous underwriting and strong risk management provides a strong foundation on which to manage through the current housing environment. Thanks to a predominantly prime-based insured loan portfolio, our loss ratio was the best in the industry in 2007. While loss pressure will continue during 2008, our captive reinsurance agreements will provide important protection against increasing losses in subsequent years as we position Genworth for income growth.
First-time and low- to middle-income homebuyers, our core market, appreciate the added value we provide, like unemployment insurance and discounts on home-related products and services. We will continue to help lenders serve these customers better, making low down payment loans possible by insuring them against borrower default.
With foreclosures at record levels, we are providing even more value through our no cost Homeowner Assistance program to help keep people in their homes. In 2007, we worked with nearly 8,000 homeowners and their lenders to find ways to modify terms and cure delinquent loans for those facing financial difficulties.
Consistently seeking new ways to help mortgage borrowers, Genworth has been a strong advocate for mortgage insurance tax deductibility. The legislation first passed by Congress for only 2007 has now been extended through 2010, making our products even more attractive. In addition, our ongoing conference series on diversity in the mortgage industry continues to provide insights into how to best serve minority and emerging market borrowers.
The ability to manage risk effectively while providing our lender partners with new products and technology to meet changing customer needs makes Genworth a leader in our industry. We look forward to maintaining that position as we continue to make the dream of home ownership a reality for even more people in the months and years ahead.
Consistently seeking new ways to help mortgage borrowers, Genworth has been a strong advocate for mortgage insurance tax deductibility. The legislation first passed by Congress for only 2007 has now been extended through 2010, making our products even more attractive. In addition, our ongoing conference series on diversity in the mortgage industry continues to provide insights into how to best serve minority and emerging market borrowers.
The ability to manage risk effectively while providing our lender partners with new products and technology to meet changing customer needs makes Genworth a leader in our industry. We look forward to maintaining that position as we continue to make the dream of home ownership a reality for even more people in the months and years ahead.
