Genworth Saves $2.3bn of Mortgages from Foreclosure

Genworth Financial (GNW) kept 16,952 mortgages out of foreclosure in the past 12 months, according to its quarterly Foreclosure Prevention Scorecard. The scorecard, which covers the 12-months from July 1, 2008 to June 30, 2009 showed that Genworth saved $2.3bn in mortgages. It also shows a 51% surge over the same period last year as a result of an increase of loan modifications, which accounted for 41% of the workouts. California workouts increased by 159% from the year before, leaping into the top 10 states. Florida, Texas and Georgia topped the list. The southeastern region accounted for $666m worth of workouts, followed by the Northeast’s $520m. Genworth “cured” 86% of the renegotiated loans, meaning that the borrower stayed in the home and became current on the mortgage. “Homeowners are hit hard by declining home values, unemployment and unexpected financial constraints,” says Alan Goldberg, a vice president for Genworth’s financial business, in a corporate release. “For many borrowers foreclosure is their last resort. That not only impacts them severely, but it can mean many thousands of dollars in lost value for the communities in which they live.” Write to Jon Prior.