Ensure you never miss an issue of the
real estate business bulletin
Mortgage insurance info to be mandatory

Mortgage insurance info to be mandatory

by Reporter 0 comments

Staff Reporter

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."

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Mortgage insurance info to be mandatory
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?