This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Genworth USMI Statement On Settlement With Consumer Financial Protection Bureau Of Previously Disclosed Review Of Arrangements With Lender-Affiliated Reinsurance Companies

RICHMOND, Va., April 4, 2013 /PRNewswire/ -- Genworth U.S. Mortgage Insurance (USMI), a unit of Genworth Financial, Inc. (NYSE: GNW), today announced it has agreed to settle with the Consumer Financial Protection Bureau (CFPB) to end the agency's review of industry captive reinsurance arrangements. As part of the settlement, Genworth will pay $4.5 million and, along with other mortgage insurance companies, refrain from certain reinsurance arrangements for a period of 10 years. The settlement will be recorded in the first quarter of 2013, and is not anticipated to have a significant impact on Genworth USMI financial results. With this settlement, the CFPB did not make any findings or determinations that Genworth or any other company violated any law. 

Genworth USMI issued the following statement on reaching the agreement:

"Genworth USMI agreed to settle this review so we can focus our resources on working with customers to help borrowers responsibly achieve and maintain homeownership, and to resolve the uncertainties inherent in such a review and any possible resulting litigation," said Rohit Gupta, president and chief executive officer of USMI.

"When Genworth USMI developed its captive reinsurance arrangements, it received guidance from the Department of Housing and Urban Development (HUD), which previously had responsibility for this area. HUD indicated that these arrangements are permissible if certain requirements are met. Genworth followed the guidance, and had the arrangements tested by independent third parties to verify that the HUD requirements were met. Further, consumers paid the same amount for the underlying insurance whether or not their loan was part of a captive reinsurance arrangement." 

"Private mortgage insurers paid more than $40 billion, several billion of which came from lender-affiliated reinsurance companies, to offset losses from defaulted mortgage loans during and after the financial crisis, providing much-needed liquidity and capital to help support the housing industry during the most severe crisis since the Great Depression," Gupta said.

About Genworth Financial

Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company dedicated to helping people secure their financial lives, families and futures.  Genworth has leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement -- including life insurance, long term care insurance, financial protection coverages, and independent advisor-based wealth management -- and mortgage insurance that helps consumers achieve home ownership while assisting lenders in managing their risk and capital.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs