Moody’s warns mortgage insurers
Mortgage insurers are performing well in the current housing market but changing conditions need to be monitored, ratings agency Moody’s has warned.
Growth in mortgage brokers is a potential concern – brokers may push through loans that wouldn't normally meet lending criteria in order to secure the fees-for-service.
This would lead to insurers being exposed to payouts in the case of loan defaults. However, the four rated players in the Australian market have maintained their solid ratings. They are St George Bank, General Electric, PMI Group and Royal & Sun Alliance.