Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (September 2020)
28 slides from Enact's investor presentation, September 2020
Slide 1: Calculating and Verifying Assets: A Quick Refresher
Calculating and Verifying Assets A Quick Refresher September 2020 Customer Education Brought to you by: Genworth Customer Development and Process Consulting ©2020 Genworth Financial, Inc. All rights reserved. 0
Slide 2: Objective
Objective Provide best practices and reminders for asset review and calculations Fannie Mae and Freddie Mac Guidelines Will Be Covered In Today’s Brief Session Calculating and Verifying Assets 1
Slide 3: Lender Letter 2020-03
Lender Letter 2020-03 Updates to Fannie Mae Policy: https://singlefamily.fanniemae.com/media/22316/display Calculating and Verifying Assets 2
Slide 4: Fannie Mae Lender Letter 2020-03
Fannie Mae Lender Letter 2020-03 Effective for applications taken April 14 and until further notice: – Market-based assets • When using stocks, stock options or mutual funds for down payment or closing costs, evidence of the borrower’s actual receipt of funds from the sale or liquidation must be doc
Slide 5: Fannie Mae Lender Letter 2020-03
Fannie Mae Lender Letter 2020-03 Effective for applications taken April 14 and until further notice: – Age of Documents • For most income and asset documents age requirements is reduced from four months to two months or 60 days from the note date. If an asset statement is issued quarterly, lenders m
Slide 6: Freddie Mac Bulletin 2020-35
Freddie Mac Bulletin 2020-35 Guidance Related to COVID-19 – Additional bulletins issued to extend policies until further notice https://guide.freddiemac.com/app/guide/bulletin/2020-35 Calculating and Verifying Assets 5
Slide 7: Bulletin 2020-35
Bulletin 2020-35 The temporary credit underwriting requirements below are effective for Mortgages with Application Received Dates on or after April 14, 2020 and remain in place until further notice: Credit Underwriting: – All Income and Asset documentation must be dated no more than 60 days prior to
Slide 8: Documentation Matrix
Documentation Matrix – Updated August 2020 The Loan Product Advisor® Documentation Matrix ONLY Has A Reminder For You To Implement COVID-19 Policies; Make Sure You Stop and Review The Documents And Understand The Updated Guidelines https://sf.freddiemac.com/content/_assets/resources/pdf/update/docma
Slide 9: PPP (Paycheck Protection Program) Loans
PPP (Paycheck Protection Program) Loans – Proceeds from a PPP loan, or similar COVID-19 related loans cannot be used towards cash to close or reserves https://singlefamily.fanniemae.com/media/22326/display PPP Or Similar COVID-19 Related Loans Are Not Acceptable Sources For Funds For the Transaction
Slide 10: Earnest Money Verification Reminders
Earnest Money Verification Reminders Review Purchase Agreement for Amounts Paid – What is the source of the earnest money or “Deposit”? – Do you have a copy of the check? Were additional deposits made per the contract? – Is it from an account you have verified? – Is it cancelled or cleared? – Did th
Slide 11: Genworth Resource Document
Genworth Resource Document Genworth Has A Tip Sheet To Help Document Earnest Money As Well As Gifts and Missing File Documentation https://new-content.mortgageinsurance.genworth.com/documents/contract-svcs/00329.ContractServices.TipSheet.pdf Calculating and Verifying Assets 10
Slide 12: Guidance on Large Deposits
Guidance on Large Deposits A large deposit is any single deposit that is 50% or more of the total qualifying income being used to qualify https://guide.freddiemac.com/app/guide/content/a_id/1000666 https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Bor
Slide 13: Total Funds
Total Funds Read The Findings Report or Feedback Certificate for Total Funds To Be Verified DU Findings LPA Feedback Certificate Calculating and Verifying Assets 12
Slide 14: The Use of Gift Funds
The Use of Gift Funds A borrower of a mortgage loan secured by a principal residence or second home may use funds received as a personal gift from an acceptable donor. Gift funds may fund all or part of the down payment, closing costs, or financial reserves, subject to the minimum borrower contribut
Slide 15: Gift Funds - Acceptable Donor
Gift Funds - Acceptable Donor A gift can be provided by: – a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship; or – a fiancé, fiancée, or domestic partner. The donor ma
Slide 16: Gift Funds - Documentation Requirement
Gift Funds - Documentation Requirement Gifts must be evidenced by a letter signed by the donor, called a gift letter. The gift letter must: – specify the dollar amount of the gift; – specify the date the funds were transferred; – include the donor’s statement that no repayment is expected; and – ind
Slide 17: Gift Funds - Availability & Transfer of Funds
Gift Funds - Availability & Transfer of Funds The lender must verify that sufficient funds to cover the gift are either in the donor’s account or have been transferred to the borrower’s account. Acceptable documentation includes the following: – a copy of the donor’s check and the borrower’s deposit
Slide 18: Freddie Mac - Gifts
Freddie Mac - Gifts https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf Calculating and Verifying Assets 17
Slide 19: Asset and Reserve Best Practices
Asset and Reserve Best Practices STOP AND REVIEW: – Enter each asset separately according to account type – Verify you have all pages to the asset statement – Break out gift funds as a separate entry in your LOS – Review for large deposits and remove any unsourced funds that are not needed – Do you
Slide 20: Genworth MI Top Decision Errors
Genworth MI Top Decision Errors https://new-content.mortgageinsurance.genworth.com/2020-08/MI%20Decision%20Tips%202Q%202020.pdf Calculating and Verifying Assets 19
Slide 21: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Calculating and Verifying Assets 20
Slide 22: Genworth Rate Express
Genworth Rate Express® Calculating and Verifying Assets 21
Slide 23: LOS Connections
LOS Connections Calculating and Verifying Assets 22
Slide 24: Training Tools and Information
Training Tools and Information Calculating and Verifying Assets 23
Slide 25: Training Tools and Information
Training Tools and Information Calculating and Verifying Assets 24
Slide 26: Additional MI Site Information
Additional MI Site Information Calculating and Verifying Assets 25
Slide 27: Your Genworth Resources
Your Genworth Resources ➢ ActionCenter®: 800 444.5664 ➢ Your Local Genworth Regional Underwriter ➢ Your Genworth Sales Representative Calculating and Verifying Assets 26
Slide 28: Legal Disclaimer
Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials. While we strive for accuracy, we also know that any discussion of laws and their application to particular facts is subject to individual interpretation, change, and other uncertainties. Our train
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