CMHC and Genworth reduced the premiums on their high ratio insurance. Below are the details on this change and how your clients will receive the new premium rate.

Date of Change:

April 22nd, 2005

Change:

• 3.25% to 2.75% for high ratio mortgages with a down payment of less than 10%.

• Applies to purchases and ports only.

How will the new premium amount be applied?

• CMHC and Genworth will be working on changing the premium amounts fed to lenders as soon as possible. Until they have changed their systems, CMHC and Genworth will refund the difference plus applicable tax directly to the client within 4-6 weeks of funding.

• CMHC and Genworth will not refund direct to the lender or broker.

• As soon as CMHC and Genworth have automated this change clients will see the new premium amount reflected in their mortgage approval/commitment. Until that time the premium amount plus applicable taxes will be based on the old premium rate of 3.25%.

Client Communication:

• Until CMHC and Genworth Update their systems with the new premium a condition will be added to the Mortgage Approval/Commitment informing clients of the new premium and the refund from the default insurance provider.

• A letter to brokers will be sent ASAP to inform them of the process around the new premiums.

• MSAs/MAs should inform their clients in their sales conversation of the new process.

• Web sites will be updated where applicable.