There is a renewed push to extend the maximum amortization period to 30 years, which would move the needle for many prospective buyers. This has been touted by the Home Builders’ Association, which has met with the Prime Minister’s office over the past several months. Genworth MI Canada (TSX:MIC) has also been an outspoken proponent of the regulatory shift.
With pressure mounting to stem the tide of declining volumes, Genworth is well-positioned to benefit from policy shifts designed to reverse the trend. For the full year in 2018 transactional premiums written rose 3% year-over-year to $619 million. However, total premiums written fell 4% to $639 million.
Genworth stock has weathered major turbulence in the Canadian housing sector, and it looks like looser policy may be on the way with so many buyers frozen out of the market after new regulations. This should push up volumes in the coming years.