Genworth Keeps Homes Out of Foreclosure

Recently, there have been some accusations made that mortgage lenders and servicers have been slow to help borrowers avoid foreclosure. Since most of the foreclosure prevention programs in place are voluntary, mortgage lenders can decide how active a role they want to play in keeping borrowers in their homes. It appears, though, that Genworth Financial is interested in helping homeowners.

Genworth recently released a scorecard showing its efforts at foreclosure prevention over the past 12 months. HousingWire reports on Genworth’s claims:

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. …

Genworth “cured” 86% of the renegotiated loans, meaning that the borrower stayed in the home and became current on the mortgage.

This is an encouraging number, which shows that some mortgage servicers see that it is in their best interests to help homeowners stay in their homes if possible. While some borrowers are unable even to afford the terms under a loan modification, perhaps other mortgage lenders would have more success if they were willing to take the same steps as Genworth.