A Sydney-based mortgage broking industry veteran has lashed out at mortgage insurer Genworth, calling a recent decision to increase insurance premiums in certain market segments is nothing short of ‘gouging’.
Smartline franchise holder Kevin Lee says he received the following notification from Genworth earlier this year:
“Please be aware effective April 1st GENWORTH Mortgage Insurance have increased their Lenders Mortgage Insurance (LMI) premiums as well as adding a loading for self-employed clients and if the security is for an investment property. This loading is also applicable if the borrower or guarantor is a self employed.”
“Once again,” says Lee, “mortgage insurers are playing games with the Australian public. US-based Genworth (part of the wider GE Group) is one of the world's largest mortgage insurers and a very profitable company. To me, this has zip to do with the underlying strengths or weaknesses within the Australian economy; this is about gouging.”
Lee tells Australian Broker that Genworth have ‘never been shy’ in increasing their premiums to suit themselves and argues that finding out what insurance premiums are made up of is near impossible.