Genworth Financial sent a letter to banks earlier this month saying that it will not be making any changes to its standards for self-employed borrowers.
Genworth will, however, tighten its rules for second homes slightly. As of May 30th, it will only sell second-home mortgage insurance on homes with one unit in them, rather than two (such as duplexes or a self-enclosed apartment in a house).
Up until now, Genworth has been willing to insure second homes with two units, as long as one of those units was occupied by the mortgage holder or one of their immediate family members.
CMHC said that, as of May 30th, it will stop insuring mortgages on second homes and will stop offering mortgage insurance to self-employed people who don’t have standard documents to prove their income.