Genworth Offers Tax Protection Plan

Genworth Mortgage Insurance Corp., Raleigh, N.C., will provide recapture tax protection available to borrowers on all loans it insures which are made with state housing finance agency funding. The program will reimburse consumers up to $6,000 for any federal recapture tax they might incur if they sell their homes nine years after closing. The federal government taxes home sellers if they used mortgage revenue bonds or mortgage credit certificate program assistance to buy their property if they then turn around and sell it within nine years. Rohit Gupta, senior vice president product, market intelligence and strategy at Genworth said "This protection will provide piece of mind for HFA borrowers concerned about their tax liability if they sell their homes. Available at no cost to either lender or borrower, it's another example of our commitment to providing safe, secure mortgage solutions for low down payment borrowers." The program is applied automatically and there is no change in the current submission process for HFA loans to Genworth.