Genworth's MI Unit Removes Some Areas from 'Distressed' List

The mortgage insurance division of Genworth Financial is removing 136 metropolitan areas from its "Declining/Distressed Markets" list which will effectively loosen loan-to-value requirements and FICO scores for certain borrowers. The changes are effective Monday, July 20. On Friday the company would not provide the identity of the markets removed with a spokesman saying the metro areas are on an "internal site and protected so they can't be copied." However, Genworth is telling its lender clients that 14 states "in their entirety" will remain on the list. The 13 include Arizona, California, Connecticut, Florida, Hawaii, Maryland, Michigan, Nevada, New Hampshire, New Jersey, Oregon, Rhode Island, Utah and Vermont. In Arizona, California, Florida and Nevada the minimum FICO score is 720. In California Genworth will not insure loan amounts north of $417,000.