Genworth Financial Inc · NYSE:GNW
Genworth Financial — Investor Presentation (April 2019)
48 slides from Genworth Financial's investor presentation, April 2019
Slide 1: Calculating Rental Income
Calculating Rental Income Fannie Mae And Freddie Mac April 2019 Genworth Mortgage Insurance Corporation ©2019 Genworth Financial, Inc. All rights reserved.
Slide 2: Welcome to the Webinar
Welcome to the Webinar A Few Reminders: – Do you have Participant materials printed • Genworth Rental Calculator • 2018 Schedule E for John Homeowner – Use the “questions” tab on your control panel for questions or problems – Follow guidelines set by your specific investor; They may have additional
Slide 3: Objectives
Objectives What we will cover: – General guidelines for calculation of rental income for Fannie Mae and Freddie Mac – Recent changes relating to rental properties from Fannie Mae Announcements and Freddie Mac Bulletins – Overview of Freddie Mac Rental Form 92 – Overview of Fannie Mae Rental Forms 10
Slide 4: Training Tools and Information
Training Tools and Information https:www.new.mi.Genworth.com Rental Income 4
Slide 5: Training Tools and Information
Training Tools and Information Rental Income 5
Slide 6: Rental Income Calculator and Quick Reference Guide
] Genworth se. Calculator and Quick Reference Guide: Rental Income Please use the following calculator and quick reference guide to assist in calculating rental income from IRS Form 1040 Schedule E provides ‘only and does not replace Fannie Mae or Freddie Mac inatructons oF applicable guidelines The
Slide 7: Rental Income
Rental Income Basics about rental income requirements: – Rental income must be supported by the borrower’s most recent personal tax returns if used for qualification purposes* • Follow the underwrite you are utilizing – Desktop Underwriter® follow the DU findings report – Loan Product Advisor® f
Slide 8: Freddie Mac Rental Income Guidelines
Freddie Mac Rental Income Guidelines Rental Income 8
Slide 9: Updates For Freddie Mac 2017-12
Updates For Freddie Mac 2017-12 Effective for loans with settlement dates on or after March 6, 2019; Final Policy Updates include: – Updates policy for rental properties NOT owned in the prior calendar year – Reintroduces Guide Form 1000 and retires Operating Income Form 998 – Expanding requirem
Slide 10: Freddie Mac Rental Income
Freddie Mac Rental Income Let’s Review The New Rental Income Matrix And Form 92 Rental Income 10
Slide 11: Freddie Mac Rental Income
Freddie Mac Rental Income Use Rental Income Matrix Updated March 2019 – Documentation and History – Lease requirements – Properties placed into service in current calendar year – Maximum eligible amount rent – Rental Income calculations – Establishing the DTI – Appraisal Forms – Investment Property
Slide 12: Freddie Mac Rental Income
Freddie Mac Rental Income Rental Income 12
Slide 13: Freddie Mac Rental Income
Freddie Mac Rental Income Rental Income 13
Slide 14: Freddie Mac Rental Income
Freddie Mac Rental Income Rental Income 14
Slide 15: Freddie Mac Rental Income
Freddie Mac Rental Income Rental Income 15
Slide 16: Freddie Mac Rental Income
Freddie Mac Rental Income Rental Income 16
Slide 17: Freddie Mac Form 92
Freddie Mac Form 92 Check Out Genworth Website for Calculator Rental Income 17
Slide 18: Freddie Mac Form 92
Freddie Mac Form 92 Check Out Genworth Website for Calculator Rental Income 18
Slide 19: Genworth's Freddie Mac Form 92 Calculator
Genworth’s Freddie Mac Form 92 Calculator https://new-content.mortgageinsurance.genworth.com/documents/calculators/Freddie%20Mac%20Form%2092%2002.19.pdf Rental Income 19
Slide 20: Freddie Mac Seller/Servicer Guide
Freddie Mac Seller/Servicer Guide For Complete Rental Income Policy Refer To The Updated Chapter 5306.1 Of The Freddie Mac Seller/Servicer Guide Rental Income 20
Slide 21: Freddie Mac Form Updates
Freddie Mac Form Updates Guide Impacts: – Guide Form 1000 Comparable Rent Schedule reintroduced • Used for single family properties and completed by the appraiser – Form 998, Operating Income Statement, being retired – Form 91, Income Calculations- Updated to remove the Schedule E rental income
Slide 22: Important Updates About Reserves
Important Updates About Reserves Effective For Loans Submitted and Resubmitted On Or After November 12, 2017 – Loan Product Advisor will determine reserves for additional properties owned and obligated on when subject is a second home or investment property – Data accuracy is critical – Enter all el
Slide 23: Bulletin 2018-10
Bulletin 2018-10 Selling Updates – Increased number of financed properties to 10 when subject is a second home or investment. When 7-10 range loan must have: • 720 credit score • 8 months reserves for each second home or investment property borrower is obligated on • Accept/Eligible recommendati
Slide 24: Fannie Mae Rental Income Guidelines
Fannie Mae Rental Income Guidelines Rental Income 24
Slide 25: Fannie Mae Seller Guide
Fannie Mae Seller Guide General Guidelines and Rental Income Forms – Borrowers that have a history of renting the subject or another property, typically income is reported on IRS Form 1040 Schedule E – Properties owned by businesses, such as an LLC or S Corp or Partnership, rental income is foun
Slide 26: Fannie Mae Seller Guide Updates
Fannie Mae Seller Guide Updates 2017-02 Updates Market Rent – Use 75% of the market rents (from form 1007 or form 1025) or leases. Rental Income 26
Slide 27: Fannie Mae Rental Calculators
Fannie Mae Rental Calculators https://new.mi.genworth.com/self-employed-borrower-calculators Rental Income 27
Slide 28: Borrowers with Multiple Financed Properties
Borrowers with Multiple Financed Properties DU uses the number of financed properties to apply the following eligibility guidelines: – A minimum credit score of 720 is required for borrowers with 7-10 financed properties – Borrowers are limited to a maximum of 10 financed properties Applies When
Slide 29: Multiple Financed Properties Fannie Mae
Multiple Financed Properties Fannie Mae Applies When The Subject Transaction Is A Second Home Or Investment Property AND The Borrower is Personal Obligated On The Financing Rental Income 29
Slide 30: Reserves- Fannie Mae Multiple Financed Properties
Reserves- Fannie Mae Multiple Financed Properties DU Versions 10.0 And Higher Applies When The Subject Transaction Is A Second Home Or Investment Property AND The Borrower is Personally Obligated On The Financing Rental Income 30
Slide 31: Reserves- Fannie Mae Multiple Financed Property Examples
Reserves- Fannie Mae Multiple Financed Property Examples Applies When The Subject Transaction Is A Second Home Or Investment Property AND The Borrower is Personally Obligated On The Financing Rental Income 31
Slide 32: Rental Income-Fannie Mae
Rental Income-Fannie Mae Fannie Mae Requirements 2-4 Unit Primary Residence – Purchase: Gross income is calculated from Form 1025 (small residential properties). – Net rental income is determined by taking the lesser of 75% of the gross rent from form 1025 or 75% of the existing leases. Note: Do
Slide 33: You Need….
You Need…. – 2018 Schedule “E” handout – Rental Income Calculation Form • Impounded/non-impounded are calculated the same • Training today assume a escrowed or impounded loan Rental Income 33
Slide 34: Schedule E Handout
Schedule E Handout Rental Income 34
Slide 35: Mortgage Statement/Payment Coupon
Mortgage Statement/Payment Coupon Always ask for one – If loan is impounded or escrowed – What property the mortgage payment is associated with – If non impounded, obtain current tax and insurance information – If condo, PUD or Coop, most investors want verification of current HOA dues Rental In
Slide 36: Mortgage Statement/Payment Coupon
Mortgage Statement/Payment Coupon Total monthly payment is $2150 PITIA Payment Above Came From Mortgage Statement And HOA Coupon/Statement From Borrower And Is Impounded; For Non-impounded Loans Obtain Tax And Insurance Information Rental Income 36
Slide 37: Rental Income Calculator and Quick Reference Guide
Genworth Calculator and Quick Reference Guide: Rental Income Please use the following calculator and quick reference guide to assist in calculating rental income from IRS Form 1040 Schedule E provides ‘only and does not replace Fannie Mae or Freddie Mac instructions or applicable guidelines Thes met
Slide 38: 2018 Schedule E Rental Income
2018 Schedule E Rental Income Rental Income 38
Slide 39: Rental Income
—> Income: : Properties: A 3 Rents received . 3 32,600. 4 Royalties received . 4 Expenses: 5 Advertising ‘ 5 6 Auto and travel (see aU) 6 7 Cleaning and maintenance 7 2,500 8 Commissions. 8 9 Insurance . . 9 1,933. 10 Legal and other promseesariat tes : 10 11. Management fees . 14 850. 12 Mortgage i
Slide 40: Net Rental Income
Net Rental Income Do not use leases, use the “Cash Flow” from the property – Be sure to flag the mortgage payment in your system as a rental property lien so that it will NOT count it in the debt ratio. Rental Income 40
Slide 41: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Rental Income 41
Slide 42: Genworth Rate Express
Genworth Rate Express® Rental Income 42
Slide 43: LOS Connections
LOS Connections Rental Income 43
Slide 44: Training Tools and Information
Training Tools and Information Rental Income 44
Slide 45: Training Tools and Information
Training Tools and Information Rental Income 45
Slide 46: Additional MI Site Information
Additional MI Site Information Rental Income 46
Slide 47: Your Genworth Resources
Your Genworth Resources ➢ ActionCenter®: 800 444.5664 ➢ Your Local Genworth Regional Underwriter ➢ Your Genworth Sales Representative Rental Income 47
Slide 48: 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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