The federal government has announced that it will now require all lenders and mortgage brokers to provide their customers with a fact sheet about Lenders Mortgage Insurance (LMI).
Genworth said the mandatory fact sheet would help home buyers compare "apples with apples" and get the right deal for them plus help consumers better understand the costs and benefits of LMI when taking out a home loan.
The government's move follows initiatives to create more competition in the mortgage market and now mandates increased disclosure and transparency for homebuyers who may require LMI.
Genworth chief executive officer Ellie Comerford said the mortgage insurer had been working with the federal government as well as lenders and the Insurance Council of Australia on a proposed LMI fact sheet for some time.
"Genworth believes it is important that homebuyers know how Lenders Mortgage Insurance works and the benefits it offers, plus their potential rights in relation to existing refund schedules if they switch home loans.
Genworth supports this move to improve disclosure and transparency for homebuyers. We also support Treasury's findings and the government's decision to rule out the introduction of a scheme to allow the transfer of Lenders Mortgage Insurance between lenders", she said.
"Recent consumer focus group research commissioned by Genworth and conducted by UMR Research found overall most consumers consider Lenders Mortgage Insurance important as it helps Australians get onto the property ladder sooner."