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ISCOVER
Staff Reporter
The federal government has announced that it will now require all lenders and brokers to provide their customers with a fact sheet about Lenders Mortgage Insurance.
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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 Lenders Mortgage Insurance 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 home buyers who may require Lenders Mortgage Insurance.
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 Lenders Mortgage Insurance 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 home buyers. 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. Home buyers and owners also like that Lenders Mortgage Insurance has been in Australia since 1965, and was introduced as a government policy and run as a government owned business for many years - this reinforces it as an integral part of the home loan market.
"We look forward to continuing our positive dialogue with the Gillard Government, Coalition, Greens and Independents on mortgage insurance and in particular to provide input during the consultation process for drafting the Government's mandatory fact sheet about Lenders Mortgage Insurance.”
