Flagstar Offers Job Loss Coverage for Genworth-Insured Loans

Flagstar Bank, Troy, Mich., is offering a program to those borrowers who will have their mortgages insured with Genworth that will cover their mortgage payments if they lose their job involuntarily. It is available at no charge on new loans and will cover the borrower's principal and interest, as well as tax and insurance, payments for up to $2,000 a month for up to six months during the benefit period, with a maximum of three monthly payments per job loss occurrence. The benefits are paid directly to Flagstar. The borrower's vesting period is 60 days after the loan closes and payments begin 30 days from the date of unemployment. The coverage is in place for up to three years after the loan closes, as long as MI coverage remains in place. Not covered under the program are seasonal, temporary or voluntary jobs, nor are those who are self-employed. A spokeswoman for Flagstar said Genworth is the only MI company the lender has this program, called Job Loss Protection, with.