HomeOpeners(sm) PaymentPlus provides a lower monthly payment than traditional mortgage insurance, most combination loans or FHA loans. It also provides the added benefit of involuntary unemployment insurance at no additional cost to the borrower. Policyholders receive two years of involuntary unemployment protection that pays principal, interest, taxes and insurance up to $2,000 for up to six months. The coverage includes unemployment due to layoffs, strikes or lockouts, as well as other unemployment.
"We're happy to be working with Flagstar to give homebuyers an attractive alternative to combination loan products," said Lewis Fain, senior vice president, Marketing and Strategic Development for Genworth Financial's mortgage insurance segment. "With it, lenders will be able to qualify more borrowers to buy the homes of their dreams."
"Our partnership with Genworth Financial is another example of Flagstar's efforts to provide innovative solutions for both borrowers and lenders," said Steve Brooks, an executive vice president at Flagstar Bank. "Genworth's PaymentPlus product is an exciting addition to our many options for borrowers who have less than 20 percent to put down toward the purchase of a home."
The industry's only single premium mortgage insurance product that includes involuntary unemployment protection, HomeOpeners(sm) PaymentPlus meets four key needs of the low down payment borrower: it lowers monthly payments, can be tax-deductible*, builds equity faster than combination loans, and is easy to cancel. Cancellation follows standard procedure under the Homeowners Protection Act of 1998. In addition, the product is fully refundable, which may provide money to the borrower upon cancellation.
Both Fannie Mae and Federal Home Loan Banks have agreed to purchase HomeOpeners(sm) PaymentPlus loans.
"HomeOpeners(sm) PaymentPlus involuntary unemployment insurance sets it apart from other low down payment solutions," Fain said. "It gives Flagstar an opportunity to stand out in a highly competitive market by delivering a valuable benefit to borrowers at no added cost. Reducing losses from borrowers' inability to make payments due to involuntary unemployment it provides peace of mind for both Flagstar and its borrowers."
The cost of the mortgage payment protection coverage for HomeOpeners PaymentPlus is paid by General Electric Mortgage Insurance Corporation, Genworth Financial's mortgage insurance business, which also underwrites the mortgage guaranty portion of the coverage. The involuntary unemployment insurance coverage is underwritten by a third party.
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*A tax advisor should be consulted for matters of tax deductions.
SOURCE: Genworth Financial
CONTACT: Terry Souers, Vice President, Public Relations, Mortgage
Insurance of Genworth Financial, +1-919-846-4459,