Genworth

The insurer’s stock has consistently been above its initial $19-per-share price, unlike those of the mortgage originators who recently went public.

The transaction could raise as much as $306 million in gross proceeds.

Stock prices for the four stand-alone MI companies have declined significantly since the start of May.

After the spinoff and a concurrent private sale to Bayview Asset Management, Genworth Financial will still own 80% of the rebranded Enact.

The inevitable cancellation of the takeover transaction by China Oceanwide means Genworth will be spinning out a portion of its U.S. mortgage insurance business.

While the agreement with China Oceanwide still remains in place, there was no formal extension of the Dec. 31 deadline.

The parties are looking at having the deal done by the end of 2020, once China's currency regulator agrees to the transfer of funds.

China Oceanwide said it was not able to meet with Hony Capital to finalize the terms and conditions because of the pandemic.

Neither side opted to invoke their Aug. 31 termination rights and the deal is set to close by the end of September.

Most of the proceeds will be used to deal with debt maturities, with the rest held by the MI unit's parent.

“They are willing to play this to the end, one way or the other.”

While low interest rates drove up new insurance written, the increased defaults stymied overall performance.

The domestic mortgage insurer could have a portion of its equity sold as an initial public offering if the China Oceanwide transaction were to be terminated.

If the transaction does not go through, Genworth is looking at reviving a spin-out of its U.S. mortgage insurance business.

But the coronavirus put a hold on the market in April and remains an overhanging cloud for the future.

But it is still looking to conserve capital to cover future delinquencies and will likely halt dividends to the parent company.

The latest deadline for Genworth Financial's acquisition by China Oceanwide is June 30, but the parties are looking to get the transaction completed by the end of next month.

With the economy and job market both healthy before the COVID-19 crisis, first-time homebuyers took advantage of low mortgage rates and hit their highest volume in two decades.

Mortgage-related companies finalized four partnerships, a servicing-retention firm went up for sale, and a long-delayed insurance-related transaction moved forward this week in a wave of industry merger and acquisition activity.

The deadline for China Oceanwide to complete its acquisition of Genworth Financial was extended for a 13th time, following completion of the sale of Genworth MI Canada to Brookfield Business Partners.