Company Update (NYSE:GNW): Genworth Introduces New Borrower Paid Mortgage Insurance Rate Card

Genworth Mortgage Insurance, a subsidiary of Genworth Financial Inc (NYSE:GNW), announced that it has standardized and simplified for customers its Borrower Paid Mortgage Insurance premium structure. With its transparent and easy to understand structure, the new BPMI rate card provides the clearest path forward for mortgage originations that require mortgage insurance.

“We took a hard look at recent pricing trends and realized we needed to recalibrate,” said Rohit Gupta, President and CEO, Genworth Mortgage Insurance. “In doing so, we’re able to provide greater granularity on our pricing while at the same time generate returns that are expected to be in the low to mid-teens in aggregate and to align with the risk-based capital requirements under the Government Sponsored Enterprises’ Private Mortgage Insurer Eligibility Requirements.”

Genworth’s updated rate card features reduced rates across all loan-to-value ratios for borrowers with credit scores of 740+ and results in weighted-average rates that are consistent with its existing card given the current mix of business. The changes also enable Genworth to remain competitive with government-backed insurance provider, the Federal Housing Administration (“FHA”).

“We were very thoughtful with our new pricing approach so as to not considerably disrupt the amount of loans insured by our business versus the FHA. Our goal today is, and always has been, to encourage the use of private capital and ensure balance in the government’s role in the housing market,” said Mr. Gupta. “This move makes it easier for customers to do business with us. Growing our customers’ business, as well as our own, is what we aim to do.” (Original Source)

Shares of Genworth Financial closed yesterday at $2.98. GNW has a 1-year high of $9.19 and a 1-year low of $1.57. The stock’s 50-day moving average is $2.25 and its 200-day moving average is $3.96.

On the ratings front, Genworth has been the subject of a number of recent research reports. In a report issued on February 9, UBS analyst Suneet Kamath maintained a Sell rating on GNW, with a price target of $1.75, which represents a potential downside of 41.3% from where the stock is currently trading. Separately, on February 5, BTIG’s Mark Palmer maintained a Buy rating on the stock and has a price target of $5.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Suneet Kamath and Mark Palmer have a total average return of -0.4% and -11.0% respectively. Kamath has a success rate of 50.0% and is ranked #2310 out of 3698 analysts, while Palmer has a success rate of 36.1% and is ranked #3661.

Genworth Financial Inc is a financial security company. It provides insurance, wealth management, investment and financial solutions.


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