Building societies get mortgage indemnity cover
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Genworth Financial is to provide mortgage indemnity insurance for the building society collective Mutual One.
The partnership between the two organisations will mean that building society members of Mutual One can use the mortgage indemnity insurance provided by Genworth Financial to maintain a presence in the higher loan to value and first-time buyer market.
Building society members of Mutual One include Hanley Economic Building Society and Skipton Building Society.
Mutual One chief operating officer Andrew Gold says: “We believe the MII collective relationship will help societies continue to meet their core purpose of providing a wide choice of residential mortgages including those for borrowers who need higher LTV mortgages.”
Genworth Financial mortgage insurance senior vice president of UK commercial business Tammy Richardson says: “It’s a long held principle of Genworth that mortgage insurance enables lenders to widen access to home ownership for consumers through the bad times as well as the good.
“We advocate prudent lending as a means to returning to stability in the housing market, and believe this new facility with Mutual One will help both the building societies involved, and their customers.”
Building Societies Association chairman and Hanley Economic chief executive David Webster says: “The Hanley wants to continue to lend to the first-time buyers within our local community at 90 per cent LTV. The new Genworth and Mutual One mortgage insurance collective will provide The Hanley with a cost effective approach to mortgage insurance. We look forward to a long term successful relationship with Genworth and Mutual One.”
Genworth Financial were among several industry figures called together by housing minister Grant Shapps last week to discuss how to help first-time buyers access the housing market.
Other attendees included Council of Mortgage Lenders director general Michael Coogan, BSA head of mortgage policy Paul Broadhead, and FSA manager of credit risk Duncan Mackinnon.
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Readers' comments (3)
Anonymous | 21 Feb 2011 9:10 am
This is refreshing!
Back to the 'Good Old Days'?
Perhaps not, but hey, anything to assist the Mortgage Marketplace at this time is welcomed.
Look forward to other Lenders getting behind this.
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Anonymous | 21 Feb 2011 9:16 am
I have been calling for a return to MIG's for sometime. At last both lenders and insurance providers seem to have identified an opportunity.
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Anonymous | 22 Feb 2011 8:36 pm
I seem to remember that the lender charged the borrower the insurance premium so the lender was paid by the insurer in the case of default but then the insurer chased the borrower for the amount paid out to the lender.I hope this is not the same deal.
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