Japan is the new platform for Genworth
Written by JDPGlobal | Tuesday, 20 September 2005
Genworth Financial Corp has confirmed its plans to offer insurance for residential mortgages in Japan. Currently, they are awaiting the approval of the financial regulator of Japan.
The U.S. insurer was quoted saying that the Financial Services Authority has signed off the plan of Genworth to trade in Japan. According to Genworth, Japan is the second biggest player in the mortgage market, with an outstanding mortgage of $1.8 trillion.
Genworth finds a huge opening in Japan’s ever-dynamic house market, worth more than $240 billion in 2004. It would also help to improve the company’s global status as an accomplished risk management venture.
The company has strong credit ratings and it plans to aid increased home ownerships through its technological capabilities and product innovation. It also hopes to support lenders to grow and serve their customers better.
Usually, lenders ask for mortgage insurance from the needy borrowers with minimal down payment. Here, mortgage insurance acts as a product for credit enhancement and protects the lenders from losses in case the borrower defaults and cannot be covered even by the sale of the mortgage.
