One leading mortgage insurer says fraud is on the decline in the Canadian mortgage industry as a result of tightened lending guidelines
The head of Genworth MI said during its company’s Q2 earnings call that mortgage fraud is on the decline in Canada.
“The industry takes misrepresentation very seriously and as a group we’ve all taken some very strong actions over the last few years to reduce instances of misrepresentation and fraud in the industry,” Stuart Levings, chief executive officer of Genworth MI Canada Inc., said during the call on Wednesday, according to the Globe and Mail.
The comments follow a week after fraud allegations brought forward by Home Trust rocked the broker channel. The revelation revolved around the suspension of 45 broker partners over income statements.
According to Levings, the underwriting process at Genworth includes professionals who are trained to catch potential fraud early in the underwriting process.
Genworth announced its quarterly earnings this week, revealing $205 million in premiums written in Q2 -- a 28 per cent year-over-year increase. The company credits improved market penetration and higher average premium rates for the increase.
It also reported a loss ratio of 17 per cent, down five points quarter-over-quarter.
"We are pleased with this quarter's solid profitability and strong top line growth, which reflects our improving market share," said Levings in a release. "Our efforts remain focused on prudent risk management, building a high-quality portfolio, and being the mortgage insurer of choice."
New delinquencies, however, contributed to the $25 million in claims losses, an increase of $8 million over Q2 2014.
“The industry takes misrepresentation very seriously and as a group we’ve all taken some very strong actions over the last few years to reduce instances of misrepresentation and fraud in the industry,” Stuart Levings, chief executive officer of Genworth MI Canada Inc., said during the call on Wednesday, according to the Globe and Mail.
The comments follow a week after fraud allegations brought forward by Home Trust rocked the broker channel. The revelation revolved around the suspension of 45 broker partners over income statements.
According to Levings, the underwriting process at Genworth includes professionals who are trained to catch potential fraud early in the underwriting process.
Genworth announced its quarterly earnings this week, revealing $205 million in premiums written in Q2 -- a 28 per cent year-over-year increase. The company credits improved market penetration and higher average premium rates for the increase.
It also reported a loss ratio of 17 per cent, down five points quarter-over-quarter.
"We are pleased with this quarter's solid profitability and strong top line growth, which reflects our improving market share," said Levings in a release. "Our efforts remain focused on prudent risk management, building a high-quality portfolio, and being the mortgage insurer of choice."
New delinquencies, however, contributed to the $25 million in claims losses, an increase of $8 million over Q2 2014.
