Genworth MI Canada Inc. Confirms that It Does Not Plan to Change Its Underwriting Policy

NEWS PROVIDED BY

Genworth MI Canada 

Jun 08, 2020, 09:32 ET

TORONTO, June 8, 2020 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) confirms that it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit score and down payment requirements. One of the Company's competitors announced changes to their internal underwriting guidelines with respect to the aforementioned underwriting criteria on June 4, 2020.  

"Genworth Canada believes that its risk management framework, its dynamic underwriting policies and processes and its ongoing monitoring of conditions and market developments allow it to prudently adjudicate and manage its mortgage insurance exposure, including its exposure to this segment of borrowers with lower credit scores or higher debt service ratios," said Stuart Levings, President and CEO. 

About Genworth MI Canada Inc. 

Genworth MI Canada Inc. (TSX: MIC) through its subsidiary, Genworth Financial Mortgage Insurance Company Canada ("Genworth Canada"), is the largest private sector residential mortgage insurer in Canada.  The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. Genworth Canada differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, Genworth Canada has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system.  As at March 31, 2020, the Company had $6.6 billion total assets and $3.4 billion shareholders' equity. Find out more at www.genworth.ca. 

Contact Information:

Investors – Aaron Williams, 905-287-5504 aaron.williams@genworth.com 
Media – Susan Carter, 905-287-5520  susan.carter@genworth.com

Caution regarding forward-looking information and statements

Certain statements made in this news release contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company are intended to identify forward-looking statements. Specific forward-looking statements in this document include, but are not limited to, statements with respect to the impact of any potential guideline changes by OSFI or legislative changes introduced in connection with the Protection of Residential Mortgage or Hypothecary Insurance Act ("PRMHIA"); the effect of changes to the mortgage insurance rules, including government guarantee mortgage eligibility rules, the Company's beliefs as to housing demand and home price appreciation, key macroeconomic factors, unemployment rates; the Company's future operating and financial results; the operating range for the Company's expense ratio; expectations regarding premiums written; and capital expenditure plans, dividend policy and the ability to execute on its future operating, investing and financial strategies.

The forward-looking statements contained herein are based on certain factors and assumptions, certain of which appear proximate to the applicable forward-looking statements contained herein. Inherent in the forward-looking statements are known and unknown risks, uncertainties and other factors beyond the Company's ability to control or predict, that may cause the actual results, performance or achievements of the Company, or developments in the Company's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Actual results or developments may differ materially from those contemplated by the forward-looking statements.

The Company's actual results and performance could differ materially from those anticipated in these forward-looking statements as a result of both known and unknown risks, including: the continued availability of the Canadian government's guarantee of private mortgage insurance on terms satisfactory to the Company; the Company's expectations regarding its revenues, expenses and operations; the potential impact of the COVID-19 pandemic on the Company's business and operations; the Company's plans to implement its strategy and operate its business; the Company's expectations regarding the compensation of directors and officers; the Company's anticipated cash needs and its estimates regarding its capital expenditures, capital requirements, reserves and its needs for additional financing; the Company's plans for and timing of expansion of service and products; the Company's ability to accurately assess and manage risks associated with the policies that are written; the Company's ability to accurately manage market, interest and credit risks; the Company's ability to maintain ratings, which may be affected by the ratings of its majority shareholder, Brookfield Business Partners L.P. ("Brookfield Business Partners"); interest rate fluctuations; a decrease in the volume of high loan-to-value mortgage originations; the cyclical nature of the mortgage insurance industry; changes in government regulations and laws mandating mortgage insurance; the acceptance by the Company's lenders of new technologies and products; the Company's ability to attract lenders and develop and maintain lender relationships; the Company's competitive position and its expectations regarding competition from other providers of mortgage insurance in Canada; anticipated trends and challenges in the Company's business and the markets in which it operates; changes in the global or Canadian economies; a decline in the Company's regulatory capital or an increase in its regulatory capital requirements; loss of members of the Company's senior management team; potential legal, tax and regulatory investigations and actions; the failure of the Company's computer systems or potential cyber threats; potential conflicts of interest between the Company and its majority shareholder, Brookfield Business Partners.

This is not an exhaustive list of the factors that may affect any of the Company's forward-looking statements. Some of these and other factors are discussed in more detail in the Company's Annual Information Form (the "AIF") dated March 11th, 2020. Investors and others should carefully consider these and other factors and not place undue reliance on the forward-looking statements. Further information regarding these and other risk factors is included in the Company's public filings with provincial and territorial securities regulatory authorities (including the Company's AIF) and can be found on the System for Electronic Document Analysis and Retrieval ("SEDAR") website at www.sedar.com. The forward-looking statements contained in this news release represent the Company's views only as of the date hereof. Forward-looking statements contained in this news release are based on management's current plans, estimates, projections, beliefs and opinions and the assumptions related to these plans, estimates, projections, beliefs and opinions may change, and are presented for the purpose of assisting the Company's security holders in understanding management's current views regarding those future outcomes and may not be appropriate for other purposes. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.

SOURCE Genworth MI Canada

Related Links

www.genworth.com

Organization Profile

Genworth MI Canada

On July 7th, 2009, Genworth MI Canada Inc. completed its IPO and began trading on the TSX under the symbol “MIC”. Genworth MI Canada, through its subsidiary, Genworth Financial Mortgage Insurance Company Canada, has been the leading Canadian private residential mortgage...

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CMHC Reviews Underwriting Criteria

The COVID-19 pandemic is affecting all sectors of Canada’s economy, including housing. Job losses, business closures and a drop in immigration are adversely impacting Canada’s housing markets, and CMHC foresees a 9% to 18% decrease in house prices over the next 12 months. In order to protect future home buyers and reduce risk, CMHC is changing its underwriting policies for insured mortgages.

Effective July 1, the following changes will apply for new applications for homeowner transactional and portfolio mortgage insurance:

• Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to our standard requirements of 35/42;

• Establish minimum credit score of 680 for at least one borrower; and

• Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.

To further manage the risk to our insurance business, and ultimately taxpayers, during this uncertain time, we have also suspended refinancing for multi-unit mortgage insurance except when the funds are used for repairs or reinvestment in housing. Consultations have begun on the repositioning of our multi-unit mortgage insurance products.

“COVID-19 has exposed long-standing vulnerabilities in our financial markets, and we must act now to protect the economic futures of Canadians,” said Evan Siddall, CMHC’s President and CEO. “These actions will protect home buyers, reduce government and taxpayer risk and support the stability of housing markets while curtailing excessive demand and unsustainable house price growth.”

These decisions are within CMHC’s authorities under the National Housing Act and are in anticipation of potential house price adjustment. We will continue to monitor market conditions and work with our federal colleagues on potential macro-prudential policy options.

CMHC supports the housing market and financial system stability by providing support for Canadians in housing need, and by offering housing research and advice to all levels of Canadian government, consumers and the housing industry.

For more information, follow us on Twitter, YouTube, LinkedIn, Facebook and Instagram. 

For information on this release:

Leonard Catling
Media Relations
Canada Mortgage and Housing Corporation
604-787-1787
lcatling@cmhc-schl.gc.ca

Bank of Canada maintains target for the overnight rate, scales back some market operations as financial conditions improve

FOR IMMEDIATE RELEASE

Media Relations
613-782-8782
Ottawa, Ontario

June 3, 2020

Available as: PDF

The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of ¼ percent. The Bank Rate is correspondingly ½ percent and the deposit rate is ¼ percent.

Incoming data confirm the severe impact of the COVID-19 pandemic on the global economy. This impact appears to have peaked, although uncertainty about how the recovery will unfold remains high. Massive policy responses in advanced economies have helped to replace lost income and cushion the effect of economic shutdowns. Financial conditions have improved, and commodity prices have risen in recent weeks after falling sharply earlier this year. Because different countries’ containment measures will be lifted at different times, the global recovery likely will be protracted and uneven.  

In Canada, the pandemic has led to historic losses in output and jobs. Still, the Canadian economy appears to have avoided the most severe scenario presented in the Bank’s April Monetary Policy Report (MPR). The level of real GDP in the first quarter was 2.1 percent lower than in the fourth quarter of 2019. This GDP reading is in the middle of the Bank’s April monitoring range and reflects the combined impact of falling oil prices and widespread shutdowns. The level of real GDP in the second quarter will likely show a further decline of 10-20 percent, as continued shutdowns and sharply lower investment in the energy sector take a further toll on output. Decisive and targeted fiscal actions, combined with lower interest rates, are buffering the impact of the shutdown on disposable income and helping to lay the foundation for economic recovery. While the outlook for the second half of 2020 and beyond remains heavily clouded, the Bank expects the economy to resume growth in the third quarter.

CPI inflation has decreased to near zero, as anticipated in the April MPR, mainly due to lower prices for gasoline. The Bank expects temporary factors to keep CPI inflation below the target band in the near term. The Bank’s core measures of inflation have drifted down, although by much less than the CPI, and are now between 1.6 and 2 percent.

The Bank’s programs to improve market function are having their intended effect. After significant strains in March, short-term funding conditions have improved. Therefore, the Bank is reducing the frequency of its term repo operations to once per week, and its program to purchase bankers’ acceptances to bi-weekly operations. The Bank stands ready to adjust these programs if market conditions warrant. Meanwhile, its other programs to purchase federal, provincial, and corporate debt are continuing at their present frequency and scope.

As market function improves and containment restrictions ease, the Bank’s focus will shift to supporting the resumption of growth in output and employment. The Bank maintains its commitment to continue large-scale asset purchases until the economic recovery is well underway. Any further policy actions would be calibrated to provide the necessary degree of monetary policy accommodation required to achieve the inflation target.

Information notes

Tiff Macklem assumes his role as the Bank’s tenth Governor today. He participated as an observer in Governing Council’s deliberations for this policy interest rate decision and endorses the rate decision and measures announced in this press release.

The next scheduled date for announcing the overnight rate target is July 15, 2020. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.

Content Type(s): Press, Press Releases

Find your Peace

What was likely more than 15-years ago, while casually shopping at the mall – you know, the social activity we could find ourselves doing pre-COVID without thought or question, I came across the mug pictured below. It had a quote I couldn’t ignore.

peace. It does not mean to be in a place where there is no noise, it means to be in the midst of those things and still be calm in your heart.(unknown)

I believed the constant reminder would come in handy, plus, my name, Irene, means Goddess of Peace. It was a two-fold value for me, so I bought the mug.

In recent times finding my peace has been a challenge, and not just in the months of COVID - this runs deeper and longer. In these last couple of months, however, I have felt like the world has come to join me for an even more chaotic ride as we brace ourselves for a new and unknown venture. We are on a journey where the lights have gone dark and we are blind to what lays ahead. We still can’t quite calibrate ourselves to balance as we are forced to move forward into the unexpected and uncertain. No matter who you are; a large organization, a bank, a top-ranking CEO, a business owner, a mother, a barista, a student, or a child, the now and immediate future has become confusing and uncertain for everyone. For the first time for the majority (if not all) of the world, there are no answers, no rules or playbooks to follow and no easy button to press – there is no immediate switch to turn the lights on.

That is scarier than shit. I’m sure we have all had our moments of overwhelm, sadness, grief, and despair. Physical, mental, and emotional bleakness. I don’t know about you, but for me, simply wearing gloves and masks as I shop takes its toll. By the time I get home, my energy is drained, my mind foggy, and my heartaches.

A small change in my routine and the visual reminders have left an impression that can nearly make me cry each moment that I place a mask on my face and gloves on my hands. It’s a reminder of today in isolation and the days that lay ahead.

There is hope and I know in my heart it will be better on the other side. We’re going through the rough patch right now.

I circle back to the fact that I had been facing a challenging time before COVID came to be. I needed to step up and break through the fears that I felt were holding me back.

May your choices reflect your hopes, not your fears. 

Nelson Mandela

I have always been open to exploring many forms of personal self-care and health options. It stemmed from being born with eczema and my mom’s perseverance to find solutions to keep her family safe and healthy. She found a homeopathic doctor earlier on in my life that produced results. This opened my eyes to new and old methods of care beyond the mainstream methods of doctors and medications. Chiropractors, massage, natural path, acupuncture, Chinese medicine and practices, osteopathy, and in recent years, hypnotherapy.

As explained by Nicolette Eus, my hypnotherapist, hypnotherapy is a therapy that uses the tool of hypnosis. Hypnosis is focused on concentration or deep relaxation and it can be used to get better, get over things, or let go of things.

Mayo Clinic defines Hypnosisas:

Hypnosis, also referred to as hypnotherapy or hypnotic suggestion, is a trance-like state in which you have heightened focus and concentration. Hypnosis is usuallydone with the help of a therapist using verbal repetition and mental images. When you're under hypnosis, you usually feel calm and relaxed, and are more open to suggestions.

Hypnosis can be used to help you gain control over undesired behaviors or to helpyou cope better with anxiety or pain. It's important to know that although you're more open to suggestion during hypnosis, you don't lose control over your behavior.

https://www.mayoclinic.org/tests-procedures/hypnosis/about/pac-20394405

Through hypnosis, you gain access to your subconscious – the deep, wise, and creative intelligence that offers a fresh perspective and new solutions. It is an ally to the conscious mind’s logic, reason, and inner critic.

Hypnotherapy is something I tried here and there over the past five years as I began to slowly introduce meditation into my life. I knew it was good. I also knew I was not doing it enough where I could really see the results I wanted. Having played sports, I related it back to being in “the zone”. When I did hypnotherapy, there were the glimmers of greatness, just like being in “the zone” when I was on the court.

Needing to find my peace, I looked to 2020 as a year to give time and attention to me and my development so I could be more effective in my business and as a mom. I didn’t play competitive sports anymore due to a long-standing knee injury, so I was on a quest to find something that gave me the drive, vision, and energy I had been missing.

I bulked up in hypnotherapy sessions and I put on a full-court press.

It gave me space to find, explore, and reconnect. To what? To whatever I need to at the time.

I made a commitment to four back-to-back sessions, to see what it would bring to life. To list all the things that have changed since visualizing new ideas or being able to find space to define what is most important would take far too long.

My easiest example and one that expands to my entire family is Friday Family Fun Nights. In my first session this year, the path led me to want to spend more engaged time with my kids. I wanted to have more fun with them and build core traditions. Family fun nights were one of many items born from that first session. Now every Friday we rotate who gets to pick the activities for the night. We have celebrated every Friday. COVID has restricted the activities to the house, yet, it has encouraged us to participate, play, and have fun – there are always laughs and the love and joy fill my cup to overflow. It is beyond heart-warming knowing how excited the kids are when it’s their week to choose and I love getting to know more about what they love to do. Recently we roasted marshmallows outside while listening to music and had an epic ping pong tournament.

The first four sessions were so life-altering, we completed four more promptly after. This time, three out of the four had to be completed virtually due to COVID. It was different, yet, brought similar impactful results.

Sessions with Nicolette have always been consistent. Each session forward, there is a heightened comfort and expansion that happens between us. My original or inaugural sessions years ago were really to get a lay of the land and to understand the process. Nicolette teaches breathing technics to support the evolution between sessions. Each session involves a personal talk at the beginning (i.e. the therapy potion), I recommend going in open and as deep as you can. Review important items, which usually help to lead the direction for the guided phase (i.e. the hypnosis portion). After the guided process, Nicolette gives time to reflect and reconnect to the visuals and feelings explored. She so eloquently summarizes those into a simple cue card for you to take with you and reflect and implement. I have kept every cue card.

I have been fortunate to have leaders in the mortgage industry encourage and push a consistent message to source support services, whether that be for professional help or personal. There has been open dialogue that its ok if everything is not ok. Just last week, our Mortgage Architects president interviewed his own counselor on his weekly morning call to bring attention to the importance of self-care and the value it brings.

I echo these sentiments and I encourage the exploration of new ways to find your peace, especially if that means trying hypnotherapy.

To give you a deeper sense of Nicolette Eus and her practice of Hypnotherapy, I encourage you to:

1. Watch this 4-minute interview

2. Read her a recent blog “Building Your Own Self-Care Toolbox“ which includes another video interview worth watching.

3. Listen to her 8-minute guided imagery series.

As described by Nicolette, when on a journey, whether a novice or well-traveled explorer, it can help to have someone along with you to hold the map - to remind you that you have everything you need to get where you want to go and to encourage you when things feel scary or challenging, to support you as you course-correct and to hold the light so you can see more clearly and find your path.

About Nicolette Eus

After many different career paths, including an 18-year run as a free-lance broadcast producer, Nicolette found herself looking for better ways to use her skills to connect with and help people in more meaningful ways. She has been a Clinical Hypnotherapist since 2009 and brings compassion, collaboration, and care, helping her clients discover their strengths, capabilities, and resources, honor their goals, and recognize that they have the freedom and power to change their minds.

Contact Nicolette
p: 604.649.5108
e: nicoletteeus@gmail.com
t: @NicoletteEus

During one of our sessions, Nicolette shared this picture with me. It was fitting for a part of our discussions. I leave it with you. If you are ever feeling helpless, then helping someone can undoubtedly be transformational. In some cases, that person can be you.

To Calgary. To Alberta.

You will get through this.

This video shows a city that has grown and changed so much since I called it home more than 20 years ago. I lived seven years in Calgary while attending the University of Calgary. It was a place I will always hold with great love. A place that is welcoming, fun, grounded and always striving to be bigger and better. When I look at all the highways, arts & culture, planned communities and historical landmarks – it has re-defined the oil cowtown I once knew, yet, I know it’s still the same great place, with the same great people. 

Over the past 15 years, the city and the whole Province of Alberta has endured so much devastation. Floods, fires and economic turmoil. The highs are high and the lows have been real lows. 

Oil & Gas, a resource that drives the province has been hit a few times.  This time, like nothing experienced before. This video is an excellent review of the ‘why’ behind the incredibly low gas prices - cira 1998. Canada and specifically, Alberta, has been impacted and there seems to be a long haul still to go.

Further to that, the article, “'What's the point?': Alberta oil producers shut in, slash spending in wake of price crash” has some quotes that bring a reality that is facing the community:

““The common theme you see in all of it is … not giving up and just hunkering down and trying to survive the storm,” said Energy Minister Sonya Savage.”

““The forces at work are telling us this is a mature industry and we’re going to see elements of consolidation … and that’s kind of natural and unavoidable,” said Rob Peabody, CEO of Husky Energy Inc.”

To the lesser scale, but still overwhelming heart-breaking for the city and province, due to COVID-19, the Calgary Zoo had to say goodbye to the Giant Pandas due to bamboo shortages and challenges in delivery logistics. 

And for the first time in 97 year, the energetic pulse of Alberta, the Greatest Outdoor Show on Earth, the Calgary Stampede, was officially cancelled on April 23, 2020.  This leaving a $540 million economic impact and the devistation to a community that thrives on the celebration each year.

The rallying that happens and the ‘never-quit’ attitude from this vibrate province and it’s people, I know you will get through this.  You have proven yourself time and time again. There will be much to celebrate in the days to come – there will be a booming and revitalized economy and I can’t wait to join the party once the Calgary Stampede is rolling again.

Until then, sending my love.