Genworth files ‘Red Herring’ for mortgage insurance unit IPO
Mortgage industry managers say the pandemic has hurt their business, disrupting mortgage lending and foreclosure processes, and affecting the ability of some borrowers to make mortgage payments.
“Any delay in foreclosure, including foreclosure moratoria imposed by state and local governments and the [government-sponsored enterprises] due to COVID-19, could cause our losses to increase as expenses accumulate for longer periods or if the value of foreclosed homes declines further during such foreclosure delays, ”the mortgage company said .
“If we see an increase in the severity of claims resulting in higher than expected claim amounts, our business, results of operations and financial condition could be adversely affected.”
The mortgage industry cites Genworth Financial’s problems with LTCI coverage as another risk factor.
“The challenges of our parent company in its long-term care insurance business, or other financial or operational difficulties, can also be attributed to us by investors and may have an adverse effect on the perception of our common shares in as an investment, ”said the mortgage company. .
“In addition, any downward revision or negative outlook of our parent company’s ratings may have a negative impact on our ratings of certain rating agencies whose rating protocols and group rating methodologies require unfavorable rating actions. case of downgrading of the rating of the parent or sister company or of unfavorable rating actions. said the firm.
“A downgrade in our ratings could have a negative impact on our relationships with our current and potential clients, as well as our ability to enter new business and access capital on favorable terms.”
Tom McInerney, CEO of Genworth, is not listed in the current version of Red Herring from Genworth Mortgage Holdings. The CEO of this company is listed as Rohit Gupta. Red herring includes spaces for the names of 10 board members.
Tom McInerney (Photo: Victor J. Blue / Bloomberg)