Genworth's goal is to support home ownership and is committed to supporting you and your customers when experiencing mortgage arrears and default.
Default management FAQ's
When do I report a loan that is in default?
All insured loans are reportable on a monthly basis where arrears are 3 months. The loan continues to be reported each month thereafter until the arrears fall under the 3 month threshold, been cured by way of loan payout or a claim has been paid.
How do I report a defaulting loan?
A monthly report is required that outlines all insured loans within the reportable period (eg loans in arrears 60 days or greater). Genworth must receive the report within 14 days of the proceeding calendar month.
Is there a particular format required to report defaulting loans?
Genworth has a standard Arrears Reporting Template that we ask all lenders to complete.
Legal action is required on a defaulting loan. What do I do?
Commence your action as required in line with the legislative requirements for the property in question. The action taken should be reported in your monthly report. If you are unsure of the action taken, or problems arise during the process, consult with your claims coordinator at Genworth.
Legal action is proceeding to the point where gaining possession of a property is likely. What do I do?
Ensure that your claims coordinator at Genworth is aware of the situation and kept up to date with the action taken on the property.
I have taken possession of a property. Who should I contact and what information is required?
Formal possession must be advised within 14 days of it being obtained. Contact your claims coordinator and they will provide you with the standard requirements of Genworth. Ensure that the property is secure.
We are selling a property that has come into possession. Do I need to contact Genworth to discuss sale options?
From the time possession has been obtained, regular contact with your claims coordinator should be held. You may require approval to certain costs associated with the sale and the listing or reserve prices of the insured property.
A property that was sold under mortgagee sale circumstances has settled and a loss has occurred. What do I do?
Advise your claims coordinator that settlement has occurred and confirm whether a claim will be lodged.
How do I receive payment if a loss is incurred on a property?
Complete the Claim Form and forward with any ancillary information to your claims coordinator for assessment before payment will be made.
What happens when a claim has been paid?
Genworth will attempt recovery of the loss from the borrower as an unsecured creditor.