Genworth Financial—which has been losing market share to rivals Radian and United Guaranty—this week made the decision to reduce its mortgage insurance rates for borrowers with loan-to-value ratios equal to or less than 95%.
Even borrowers with credit scores below 760 and down to 660 will be eligible for the new, reduced MI rates, the company said.
The premium reductions by Genworth’s U.S. mortgage insurance unit apply to both lender-paid and borrower-paid MI policies.
The changes go into effect May 14. Currently, Genworth will not insure a borrower with a minimum credit score of 700 who has a debt-to-income ratio above 41%. Under the new guidelines, the MI will accept a maximum DTI of 45%.
The Raleigh, N.C.-based insurer also is eliminating guideline distinctions between retail and third-party originations, making it easier for condominium owners to qualify for a cash-out refinancing.
Genworth recently suffered turmoil in its executive suites with CEO Michael Fraizer resigning from the firm. Its stock is trading near its 52-week low of $4.80.