Genworth subsidiary grabs Fannie approval despite state risk waivers
[Update 1: clarifies number of states Fannie approved for Genworth] Fannie Mae approved a Genworth Mortgage Insurance Corp. (GNW) subsidiary to provide mortgage insurance only in four states that have not waived the company's still maxed-out risk requirements. Mortgages insured by Genworth Residential Mortgage Assurance Corp. are eligible for whole loan purchase by Fannie Mae or inclusion into a mortgage-backed securities pool if the note is dated on or after April 18. GRMAC is also approved to write coverage on Fannie loans going forward in a limited number of states, which Fannie said could change over time. According to Genworth's financial statement for the first quarter, the company continued to exceed the maximum risk-to-capital requirement for writing new business in North Carolina. But the state continued to grant it a two-year waiver as of March 31. Genworth is also cleared to write new mortgage insurance under waivers from 10 other states. Business continues in another 34 states that do not have maximum risk requirements. "While we continue to seek this regulatory flexibility through additional state waivers, where available, we expect to manage our capital and business operations so as to maintain capacity to write new profitable business," the company's filing said. The company added that it uses subsidiaries to continue writing business in those states where Genworth has not received a waiver to continue writing new insurance. One of those subsidiaries is GRMAC. In a statement sent to HousingWire, Genworth said the approval should help the company grow new insurance written by 25% to 45% in 2011. "Genworth Mortgage Insurance is pleased that its Genworth Residential Mortgage Assurance Corporation subsidiary received Fannie Mae approval as a provider of mortgage insurance for loans sold to the agency," Genworth said. Write to Jon Prior. Follow him on Twitter @JonAPrior.