Genworth Financial, the fifth-largest mortgage insurer, warned that borrower defaults may to push it into the red in 2008 (hat tip, Calculated Risk). In an investor presentation on Tuesday, the company forecast a potential loss as large as 25 cents per share next year, driven in large part by the company's mortgage business. From Bloomberg:
"We did not expect the speed or degree of the unprecedented turn of the housing market," Chief Executive Officer Michael Fraizer said in a conference call today. Fraizer has said Genworth covered too many mortgages in Florida, where the foreclosure rate is above the national average.