Genworth
Mortgage Insurance’s policies for premium refunds on defaulted residential loans varies between Fannie Mae and Freddie Mac.
The Raleigh, North Carolina-based firm currently refunds M.I. premiums on defaulted government-sponsored enterprise loans to the servicer.
But on Fannie Mae mortgages, the mortgage insurance company will begin refunding all premiums on such loans directly to Fannie.
The change was discussed in
Servicing Announcement 2017–1 and is reflected in Genworth’s Master Policy (MP 1480).
All borrower-paid M.I. premiums refunded on defaulted Fannie Mae loans after March 19 will be sent directly to the secondary lender.
However, Genworth noted that Freddie has advised it to continue refunding M.I. premiums after default to the mortgage servicer.
