Genworth Financial announced it’s applying to become a savings and loan after it reached a deal to acquire Interbank, fsb. Genworth, a provider of life and mortgage insurance products, will acquire the Maple Grove, Minnesota based bank for an undisclosed sum. The community bank has about $1 billion in assets according to its website.
Assuming that the acquisition and change in status to a savings and loan holding company is approved, Genworth will be able to receive funding from the TARP. The injection of capital will help the Richmond, Virginia-based company who has been battered by investment losses, and concerns that it would run short of capital. Its shares have fallen from $25.45 at the beginning of the year, to as low as $1 last week.
What does this mean Genworth’s reverse mortgage provider Liberty Reverse? It’s to early to tell but this should provide a cheaper source of funds for its reverse mortgage production. Liberty is supposed to become Genworth Financial Home Equity Access sometime today, but the website isn’t live yet.
