Genworth Financial's mortgage insurance business, which had slipped in market share, has more certainty about its future prospects after a federal government committee approved the holding company's acquisition by China Oceanwide.
The number of single-family houses purchased by first-time homebuyers fell year-to-year as 2018 got underway, reversing a trend that has been in place since 2014.
First-time homebuyers using loans backed by private mortgage insurance soared in the fourth quarter on the growing popularity of Fannie Mae and Freddie Mac's 3% down payment options, according to Genworth.
Genworth Financial's acquisition by a Chinese insurance company, which has already been delayed several times, might be in peril following the failure of another cross-border merger to gain approval.
Over half of mortgage industry executives anticipate first-time home buyer growth in 2018, estimating that market will grow at a faster pace than the overall housing market, according to Genworth Financial.
Genworth Financial had net income of $107 million because of its U.S. mortgage insurance business, but it is considering a partial sale of the unit if the parent company isn't acquired by next May.
Fannie Mae is testing a conforming loan product that makes use of a New Hampshire law that lets manufactured housing in resident-owned communities get treated like units in a co-operative building.
With a debt deadline looming and regulators again delaying approval of its takeover by China Ocwenwide, Genworth Financial is weighing how to protect its private mortgage insurance unit from its troubled life insurance business.
The volume of homes sold to first-time buyers during the second quarter reached a high not seen since 1999 and accounted for more than half of purchase mortgage originations.
