Genworth expecting losses from Alberta mortgages

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Canada’s largest private mortgage insurer says it is expecting losses from Alberta this year and is increasing its scrutiny of new applications. Genworth has increased its ratio of ‘claims to premiums’ forecast to 30 per cent (from 20 per cent) on expectation of rising unemployment and house prices falling by 3 to 5 per cent. Although house prices has increased in markets such as Calgary and Edmonton many mortgages have a high loan-to-value ratio which is a concern for the insurer. Genworth is also monitoring Ontario which is says has a “moderate degree of overvaluation” in single-family homes. Read the full story.

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