RICHMOND, Va., Sept. 28, 2018 /PRNewswire/ -- Genworth Financial, Inc. (NYSE: GNW) today commented on the release of the revised private mortgage insurer eligibility requirements (PMIERs 2.0) by the Federal Housing Finance Agency (FHFA) on September 27, 2018. This is the set of requirements that private mortgage insurers must meet to be eligible to provide mortgage insurance on loans delivered to or purchased by Fannie Mae and Freddie Mac (GSEs)—the financial aspects of which demand that a mortgage insurer's available assets equal or exceed its required assets. The effective date of PMIERs 2.0 is March 31, 2019.
As of June 30, 2018, Genworth's U.S. mortgage insurance business had available assets of approximately 129% of the required assets under the current set of PMIERs requirements, or more than $700 million above the required levels. If PMIERs 2.0 had been effective as of June 30, 2018, Genworth estimates that its sufficiency ratio would have been approximately 120%, or more than $500 million of available assets above the PMIERs 2.0 requirements. This difference is primarily due to the elimination of any credit for future premiums in PMIERs 2.0 that had previously been allowed on insurance policies written in 2008 or earlier.
Rohit Gupta, CEO of Genworth's U.S. mortgage insurance business said, "Genworth's continued capital sufficiency under PMIERs 2.0 reflects our ongoing balance sheet and counterparty strength in support of our customers and the GSEs. We are pleased to continue serving in an important role providing credit loss protection under these new, robust capital standards."
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
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Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "projects," "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," "are confident" or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance and our ability to meet revised private mortgage insurer eligibility requirements established by the GSEs and FHFA. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks, including the items identified under "Part I—Item 1A—Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission on February 28, 2018. The amount of capital required by our U.S. mortgage insurance business to meet the revised private mortgage insurers eligibility requirements is dependent upon, among other things: (i) the way PMIERs 2.0 are applied and interpreted by the GSEs and FHFA as and after they are implemented; (ii) the future performance of the U.S. housing market; (iii) the generation of earnings in our U.S. mortgage insurance business, available assets and risk-based required assets (including as they relate to the fluctuating value of the shares of our Canadian mortgage insurance subsidiary that are owned by our U.S. mortgage insurance business as a result of share price and foreign exchange movements or otherwise), reducing risk in-force and reducing delinquencies as anticipated, and writing anticipated amounts and types of new U.S. mortgage insurance business; and (iv) its overall financial performance, capital and liquidity levels. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
SOURCE Genworth Financial, Inc.