- In December, Mortgage Guaranty boosted the maximum mortgage it will insure to $850K from $750K, and Genworth (GNW +0.9%) boosted from $625K to $850K in October. AIG's United Guaranty introduced a limited program for mortgages of up to $1M, and Radian (RDN -0.4%) is considering raising its $850K cap.
- The moves come as the jumbo mortgage market heats up and the insurers see an opening to grab market share. The companies say small lenders have been contacting them looking for insurance for low down-payment jumbo loans. "We’re making these changes because we sense some level of demand - in the last six months the number of inquiries have increased,” says Genworth's Anthony Guarino.
- There's also credit profiles: For years, lenders have only been interested in the best borrowers, but are now turning their attention to those further down the trough as the government makes itself less of a presence in the mortgage market.