Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (October 2020)
22 slides from Enact's investor presentation, October 2020
Slide 1: Calculating and Entering the HCLTV and HTLTV
Calculating and Entering the HCLTV and HTLTV Suggested Best Practices and Reminders October 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 Understand what LTV, CLTV/TLTV and HCLTV/HTLTV are and how to calculate and enter into the AUS for Fannie Mae and Freddie Mac Calculating and Entering the HCLTV or HTLTV 1
Slide 3: General Terms You Should Know
General Terms You Should Know – HELOC Home Equity Line of Credit: A HELOC differs from a conventional loan in that the borrower is not advanced the entire sum up front but uses a line of credit to borrow sums that total no more than the credit limit, similar to a credit card. – Closed End Subordinat
Slide 4: Fannie Mae: LTV, CLTV and HCLTV
Fannie Mae LTV, CLTV and HCLTV – LTV = (Loan to value) = Original loan amount divided by lesser of sales price or appraised value for purchase transactions* – CLTV = (Combined loan to value) = Original loan amount, the drawn portion (outstanding principal balance) of a HELOC and the unpaid principal
Slide 5: Freddie Mac
Freddie Mac https://guide.freddiemac.com/app/guide/content/a_id/1000475 Calculating and Entering the HCLTV or HTLTV 4
Slide 6: Calculations
Calculations Examples of LTV, CLTV/TLTV and HCLTV/HTLTV – First Mortgage is $250,000. – Closed end second for $25000 – Sales Price is $400,000 – Appraised Value is $400,000 – LTV = $250,000/$400,000 = 62.50% – CLTV/TLTV = $250,000 + $25,000/$400,000 =68.88% – HCLTV/HTLTV = $250,000 + $25,000/$400,00
Slide 7: Calculations
Calculations Examples of LTV, CLTV/TLTV and HCLTV/HTLTV – First Mortgage is $250,000. – Undrawn HELOC at closing is $0 – High Credit of the HELOC is $50,000 – Sales Price is $400,000 – Appraised Value is $395,000 – LTV = $250,000/$395,000 = 63.29% – CLTV/TLTV = $250,000 + $0 /$395,000 = 63.29% – HCL
Slide 8: Lender Reminders- Fannie Mae
Lender Reminders- Fannie Mae For each subordinate liability, the lender must determine the maximum credit line for all HELOCs, if applicable, and the unpaid principal balance for all closed-end subordinate financing. If any subordinate financing is not shown on a credit report, the lender must obtai
Slide 9: Permanently Modified HELOCs-Fannie Mae
Permanently Modified HELOCs-Fannie Mae If a lender determines the HELOC has been permanently modified and the outstanding UPB is less than the permanently modified HELOC, the lender must use the modified HELOC amount in calculating the HCLTV ratio for eligibility purposes and for delivery. The lende
Slide 10: When to Include a Payment-Fannie Mae
When to Include a Payment-Fannie Mae Primary Home https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/#Home.20Equity.20Lines.20of.20Credit 9
Slide 11: When to Include a Payment-Freddie Mac
When to Include a Payment-Freddie Mac Primary Home 5401.1 https://guide.freddiemac.com/app/guide/content/a_id/1000662 10
Slide 12: Entering in DU
Entering in DU ® HELOC Example where borrower is drawing $25,000 of a $55,000 line of credit for a purchase on a new line of credit See the Desktop Underwriter Job Aid for Entering Subordinate Financing for additional scenarios, such as existing subordinate liens and Community Seconds® https://singl
Slide 13: Entering in Loan Product Advisor
Entering in Loan Product Advisor ® Your LOS May Look Different Or Have Different Data Entry Requirements 12
Slide 14: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Calculating and Entering the HCLTV or HTLTV 13
Slide 15: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Calculating and Entering the HCLTV or HTLTV 14
Slide 16: Genworth Rate Express
Genworth Rate Express® Calculating and Entering the HCLTV or HTLTV 15
Slide 17: LOS Connections
LOS Connections Calculating and Entering the HCLTV or HTLTV 16
Slide 18: Training Tools and Information
Training Tools and Information Calculating and Entering the HCLTV or HTLTV 17
Slide 19: Training Tools and Information
Training Tools and Information Calculating and Entering the HCLTV or HTLTV 18
Slide 20: Additional MI Site Information
Additional MI Site Information Calculating and Entering the HCLTV or HTLTV 19
Slide 21: Your Genworth Resources
Your Genworth Resources ➢ ActionCenter®: 800 444.5664 ➢ Your Local Genworth Regional Underwriter ➢ Your Genworth Sales Representative Calculating and Entering the HCLTV or HTLTV 20
Slide 22: 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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