In its quarterly report, Genworth noted the move away from certain business channels in order to focus on profitable business segments. It cited strong life insurance business and recovering mortgage insurance unit as leading to its quarterly results.

During the quarter, the company reported an increase in corporate and other net operating loss, attributing the greater loss to goodwill associated with the company’s reverse mortgage business. Genworth acquired Liberty Reverse in November 2007 for $50 million and was the first major insurance provider to acquire a reverse mortgage lender.

During the fourth quarter, Genworth reported a non-cash impairment charge of $19 million to write off all of the goodwill associated with the reverse mortgage business, the company reported.

“Corporate and Other’s net operating loss was $63 million, compared with $45 million in the prior year quarter, driven primarily by a $19 million after-tax impairment of all the goodwill associated with the reverse mortgage business,” the company stated in its earnings report.

“For Genworth, 2011 was a year of repositioning actions to move the company through an uncertain environment and provide a foundation for improved shareholder value. We made progress in several areas and will maintain an intense execution focus during 2012.” said Michael Frazier, Genworth chairman and CEO. “At business portfolio and product line levels, we took important steps to improve our focus, strengthen risk buffers and capital generation, and support future redeployment of capital.”

Genworth’s stock price rose 7% to $8.62 per share following the announcement Thursday.

Written by Elizabeth Ecker

“Bob brings a wealth of reverse mortgage knowledge and experience and we are excited to have himlead a key territory for us,” said Bob Marseilles, GFHEA National Sales Leader. “We are excited to have him on board and know that our brokers in his area will benefit from the service and support he is able to provide.”

Garczewski’s years of experience in the mortgage business as well as insurance and financial planning will help his business partners continue to grow and develop their reverse mortgage business, GFHEA said in the announcement.

GFHEA operates retail and wholesale reverse mortgage channels and currently ranks in the top-10 lenders at No. 7. The company closed 2,310 loans in 2011, nearly doubling its volume from the previous year, according to data from Reverse Market Insight.

Written by Elizabeth Ecker

While there have been rumors floating around for the last few months that New York Life, one of the largest mutual life insurance companies in the United States, was looking to enter the space, a new job opening confirms the company plans to enter the reverse mortgage business.

According to the job description, the company is looking for someone to oversee all financial reporting and business planning elements of its Home Equity Income Solutions (HEIS) business line. New York Life describes its HEIS business as a “proprietary approach to the reverse mortgage market.”

During the National Reverse Mortgage Lenders Association annual conference in Boston earlier this year, New York Life discussed offering some type of proprietary reverse mortgage product during meetings with several key industry leaders according to RMD sources. Whether or not HEIS will include a proprietary product isn’t yet known.

New York Life has several relationships with AARP to offer life insurance and lifetime income products to its members and a source who spoke with the company in Boston said it’s looking at doing the same thing with reverse mortgages.

It’s not clear when the company will launch the new business line and the company declined to comment specifically on its reverse mortgage plans.

“The company is always looking at new business opportunities,” said a company spokesman in an email to RMD. “However, it is company policy not to comment on rumors or speculation. Our practice is that when we have news to announce we do so promptly.”

While the company might call this speculation, it’s the first public confirmation from one of the largest mutual life insurance companies that it is gearing up to possibly enter the reverse mortgage business.

Last Wednesday, the company announced it was temporarily suspending those product offerings, “until market conditions allow for GFHEA to reintroduce [the] offerings.”

Brokers told RMD the ARM products GFHEA is offering are priced less aggressively than others in the marketplace.

GFHEA did not note any change to its fixed rate product offerings for manufactured homes, which it also suspended last week.

RMD contacted GFHEA for more information, but our request had not been answered as of press time.

Written by Elizabeth Ecker

Genworth cut several HECM product offerings. Genworth Financial Home Equity Access (GFHEA) announced late Wednesday it is temporarily eliminating a range of reverse mortgage products offered through its wholesale and correspondent channels, including adjustable rate HECMs (both the Standard and Saver) as well as fixed rate HECM products for manufactured homes.

A change cutting brokers from the HUD HECM Lender list came to light. Since the Federal Housing Administration made the shift to include non-FHA-approved third party originators to originate HECM loans, the HUD Lender List has cut all non-FHA approved brokers, even though they are approved through their lenders. Brokers raised concerns over establishing legitimacy when they are not on the list…

The CFPB debuted its Office of Older Americans chief. Senior financial protection czar Hubert “Skip” Humphrey has taken the reins and said he will be on the lookout for senior scams including those that impact seniors’ home equity.

Two lenders saw retail volume double this year. A Reverse Market Insight report indicated that American Advisors Group grew its volume 115.1% and MetLife gained 90.1% in 2011. Total endorsement growth in the reverse mortgage industry was up 5.3% in August.

In a forward world, reverse got some special attention. A reverse mortgage booth at a  national Mortgage Bankers Association conference saw lots of forward interest in reverse products. Participants said it was a “healthy” level of interest.

…and look out for RMD, appearing live on a 9 am panel at the NRMLA Boston conference this coming Monday. We’ll be talking about how you can best share your reverse mortgage story with the press. Stay tuned!

The products include adjustable rate HECMs (both the Standard and Saver) as well as fixed rate HECM products for manufactured homes.

The company said the changes were effective immediately for closed loan and broker channels until market conditions allow for GFHEA to reintroduce the offerings. No new applications will be accepted until further notice.

For brokers who have loans in the pipeline with GFHEA, the change causes concern in cases where loan types that have been discontinued have not yet closed.

“Any applications received by GFHEA that do not have closing documents drawn by 10/19/2011 will have to be moved to a fixed rate product offering,” the email stated.

Brokers who spoke with RMD expressed concern that a fixed rate loan may not be appropriate in all cases, and that the decision would cause a delay in their loan pipelines as well as for borrowers waiting for loans to close.

RMD contacted GFHEA for more information, but our requests had not been answered as of press time.

The company rolled out a closed loan seller program in early July, which allowed its customers to sell loans to GFHEA while maintaining existing broker responsibilities in addition to closing and funding their own loans. Its wholesale business currently comprises 12.3% of the industry’s market share, according to data from Reverse Market Insight.

GFHEA has not made any statement regarding its retail channel.

RMD will provide updates as more information is made available.

Written by Elizabeth Ecker

“Michael brings a wealth of reverse mortgage knowledge and experience and we are excited to have him take over a key territory for us,” said Bob Marseilles, GFHEA National Wholesale Sales Leader. “We are thrilled to have him on board and know that our brokers in his area will benefit from the service and support he is able to provide.”

Suits will cover states such as Texas, New Mexico, and Louisiana said the company in a statement.

Prior to joining GFHEA, Suits served as a regional account executive for MeLife Bank’s reverse mortgage division.  He brings nearly 10 years of mortgage industry experience with almost 5 of those years focused on reverse mortgages.

According to data from Reverse Market Insight, GHFEA is the third largest wholesale lender, with 85% of its business coming from the channel.

Under the program, customers have the ability to sell loans to Genworth while maintaining existing broker responsibilities in addition to closing and funding their own loans. GFHEA will continue to underwrite, draw loan documents (in the seller’s name) and submit the loans for FHA insurance.

“We are very excited to launch our reverse mortgage closed loan program, which offers mortgage lenders a complete solution to help them grow their reverse mortgage business,” said Pete Engelken, GFHEA President. “Participants retain control over the entire origination and funding process while receiving specialized underwriting and document generation capabilities from GFHEA.”

The additional control gives participants the ability to provide enhanced service to their customers and earn more revenue from the transaction by receiving a premium for selling the closed loan. As sellers, participants set the loan origination fee and can offer improved pricing by determining the appropriate fee for each customer.

Customers are not required to have a DE underwriter on staff, but CLP participants must be HUD-approved Full Eagles in good standing, have unconditional HUD Direct Endorsement (DE) or HECM DE approval and be capable of funding their own loans.