Genworth Mortgage Insurance starts taking FHA appraisals
In an effort to compete with the Federal Housing Administration, the lending subsidiary of Genworth Financial (GNW), Genworth Mortgage Insurance, now accepts FHA appraisals in consideration for underwriting a conventionally-insured mortgage loan. The firm said that any measure that makes it easier for Genworth customers to do business would increase the private market share for originations. "We are attempting to pull back the market from FHA," Chris Mock, senior vice president of Underwriting and Servicing at Genworth Mortgage, told HousingWire. "One way we thought we could do it more effectively is to look at the FHA documents and see if we could get comfortable with those documents." The firm also said streamlining appraisals will reduce processing times by weeks because a new appraisal will not have to be applied and paid for if the borrower chooses not the have their loan insured by the federal government. Genworth said the quality of FHA appraisals enables the company to use them across the board. "This is a win-win situation that benefits both homebuyers and lenders," Mock said. "The strength of the FHA's appraisal standards has allowed us to make this change in our underwriting process." FHA appraisals are accepted for conventional purchase and refinance originations. All credit, income and loan documentation is still required to be provided to Genworth. Write to Christine Ricciardi.