Size and number of mortgage insurance claims fall in December quarter: Genworth

Mortgage insurer Genworth has reported both a drop in the number of lenders mortgage insurance (LMI) claims paid out and the average size of claims in its latest quarterly update.

Genworth paid 878 claims over the December 2012 quarter, compared with 963 in the September quarter – a decline of 9.6%.

The average value of claims declined from $84,000 to $81,000.

Across Australia, the overall delinquency rate on LMI mortgages improved by 6 basis points to 0.41% quarter-on-quarter.

Lenders Mortgage Insurance (LMI) is generally required for borrowers that don’t have a 20% deposit and insures the lender against any shortfall if the borrower defaults on their home loan and the lender is required to sell the property as mortgagee in possession.

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The highest number of claims by region were for loans over properties in the tourism-dependent and struggling Coastal Queensland market, with 112 claims paid, but this was down from 113 and 128 in the two previous quarters.

Claims for loans to small businesses and self-employed borrowers declined from 116 to 103 over the quarter.

Globally, Genworth reported a strong rise in net income from US$34 million to US$166 million with earnings per share of 34 cents..

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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