Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (January 2021)
89 slides from Enact's investor presentation, January 2021
Slide 1: Manufactured Housing: Fannie Mae and Genworth Guidelines
Manufactured Housing Fannie Mae and Genworth Guidelines January 2021 Customer Education Brought to you by: Genworth Customer Development and Process Consulting ©2021 Genworth Financial, Inc. All rights reserved. 0
Slide 2: Agenda
Agenda What we will cover – Recent Updates including Fannie Mae’s MH Advantage® properties and single width properties – What is a manufactured home – Specific appraisal fields – Tools and resources – Genworth website and guidelines Uniform Appraisal Dataset Requirements Do Not Apply To Manufactured
Slide 3: Quiz
Quiz If you put an addition onto a manufactured home it’s now modular? – No, once a manufactured home it’s always a manufactured home Concrete blocks and tie downs are never considered a permanent foundation? – False, it’s based on the local building codes. Verify if your investor has an overlay and
Slide 4: Manufactured Home
Manufactured Home Lenders must – Take steps necessary or prudent to ensure all the property securing the loan is real property – Lenders must be aware of all state, county and local laws, rules and regulations relating to converting manufactured homes to real property Example – “Evidence of intent”
Slide 5: Manufactured Home Definition
Manufactured Home Definition *A manufactured home (formerly known as a mobile home) is built to the Manufactured Home Construction and Safety Standards (HUD Code) and displays a red certification label on the exterior of each transportable section. Manufactured homes are built in the controlled envi
Slide 6: What's New!!
What’s New!! Effective for Loans delivered February 1, 2021 – Allowing delivery of single width manufactured homes for Primary purchase and limited cash-out transactions – New appraisal requirements for comparable selection- two comps must be single width manufactured homes, if only one available a
Slide 7: What Is NOT A Manufactured Home
What Is NOT A Manufactured Home What is NOT a manufactured home – Modular Homes: Fannie Mae purchases loans secured by modular homes built in accordance with the Uniform Building Code administered by state agencies responsible for adopting and administering building code requirements for the state i
Slide 8: General Property Requirements
General Property Requirements Manufactured Homes Must – Be built in compliance with Federal Manufactured Home Construction Safety Standards of 1976 as evidenced by the HUD identification plate located inside the unit and additional requirements that appear in HUD regulations at 24 C.F.R. Part 3280 a
Slide 9: General Property Requirements
General Property Requirements Manufactured Homes Must – All improvements must be completed and paid for (exception is for minor items that would not affect the ability to obtain an occupancy permit) – Manufactured home must be one-unit dwelling that is legally classified as real property and cannot
Slide 10: General Property Requirements
General Property Requirements The purchase, conveyance, and financing (or refinancing) of the land and the manufactured home must be evidenced and secured by a single valid and enforceable note and first lien mortgage, deed of trust or security deed that is recorded in the land records, in states wh
Slide 11: Manufactured Homes- Reminders
Manufactured Homes- Reminders – All manufactured homes must be submitted to DU® or Desktop Underwriter® to be eligible for sale to Fannie Mae. • Verify property type has been entered correctly in DU as a Manufactured – DU checks the subject property address against Fannie Mae’s database • If databas
Slide 12: Construction to Perm Manufactured Homes
Construction to Perm Manufactured Homes Overview.. See Sections of the Selling Guide for Complete Details https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B5-Unique-Eligibility-Underwriting-Considerations/ Manufactured Housing Fannie Mae Overview 11
Slide 13: Construction to Perm Manufactured Homes
Construction to Perm Manufactured Homes Job Aid… – Single-Closing C-to-P can be closed as a purchase (borrower does not own the land) or refinance (borrower owns the land) – Two-closings, interim loan is to close and to build the home, once construction complete, second closing of fully amortizing r
Slide 14: MH Advantage
MH Advantage Flexibilities over standard manufactured housing include higher LTV ratios (97%LTV/105%CLTV), reduced MI when fixed rate loan term is < than or = to 20 years and reduced LLPAs Participating manufacturers will allow a “MH Advantage Sticker” near the HUD Data Plate. The Sticker identifies
Slide 15: MH Advantage
MH Advantage Site improvements lenders verify by review of photos attached to 1004C Manufactured Home Appraisal Report or 1004D Completion Report Manufactured Housing Fannie Mae Overview 14
Slide 16: MH Advantage
MH Advantage The Sticker https://singlefamily.fanniemae.com/media/5491/display Manufactured Housing Fannie Mae Overview 15
Slide 17: MH Advantage Appraisal Requirements
MH Advantage Appraisal Requirements MH Advantage Appraisals must follow requirements of the Selling Guide B4-1.4-01, Factory-Built Housing Manufactured Homes and in addition must also comply with the following: B4-1.4-01 Manufactured Housing Fannie Mae Overview 16
Slide 18: MH Advantage Appraisal Requirements
MH Advantage Appraisal Requirements MH Advantage Appraisals must follow requirements of the Selling Guide B4-1.4-01, Factory-Built Housing Manufactured Homes and in addition must also comply with the following: Manufactured Housing Fannie Mae Overview 17
Slide 19: Potential Red Flag Message
Potential Red Flag Message https://singlefamily.fanniemae.com/media/5611/display\ Manufactured Housing Fannie Mae Overview 18
Slide 20: Fannie Mae Eligibility
Fannie Mae Eligibility Fannie Mae purchases mortgage loans secured by manufactured homes that meet the following general criteria: – First-lien mortgages only, – Fully amortizing fixed-rate mortgages or – Fully amortizing adjustable-rate mortgages with initial fixed-rate periods of 7 years or 10 yea
Slide 21: Matrix December 2020
Matrix December 2020 file:///C:/Users/213029011/Documents/Fannie%20Mae%20Eligibility%20Matrix%20-%20December%2016,%202020_0.pdf Manufactured Housing Fannie Mae Overview 20
Slide 22: Matrix December 2020
Matrix December 2020 file:///C:/Users/213029011/Documents/Fannie%20Mae%20Eligibility%20Matrix%20-%20December%2016,%202020_0.pdf Manufactured Housing Fannie Mae Overview 21
Slide 23: Fannie Mae Eligibility
Fannie Mae Eligibility Fannie Mae considers the following loan terms/occupancy/land ownership types ineligible for mortgage loans secured by manufactured homes: – Temporary buydowns; – Investment properties; – Single-width manufactured homes with a date of manufacture more than 10 years from the eff
Slide 24: Minimum Down Payment
Minimum Down Payment A minimum down payment of 5% must come from the borrower’s own funds unless: One Unit Owner Occupied Manufactured Homes Requires Zero Borrower Contribution; A Second Home Requires A 5% Borrower Contribution Manufactured Housing Fannie Mae Overview 23
Slide 25: Minimum Down Payment-Land Value
Minimum Down Payment-Land Value 2020 Selling Guide Part B, Section B5-2.03, Manufactured Housing Underwriting Requirements Manufactured Housing Fannie Mae Overview 24
Slide 26: Minimum Down Payment
Minimum Down Payment Trade Equity available for the transaction when a borrower is trading in a manufactured home is determined by the following formula and NOT just what was paid for the home. 2020 Selling Guide Part B, Section B5-2.03, Manufactured Housing Underwriting Requirements Manufactured Ho
Slide 27: Purchase Money Transactions- New MH
Purchase Money Transactions- “New” MH New Manufactured Homes The LTV ratio (and CLTV/HCLTV ratio, if applicable) for a loan secured by a newly built manufactured home that is being attached to a permanent foundation system in connection with a purchase transaction will be based on the lower of: The
Slide 28: Purchase Money Transactions-Existing MH
Purchase Money Transactions-Existing MH The LTV ratio (and CLTV/HCLTV ratio, if applicable) for a loan secured by a manufactured home that already exists on its foundation will be based on the lowest of: – The sales price of the manufactured home and land; or – The current appraised value of the man
Slide 29: Refinance Transactions
Refinance Transactions Limited cash-out refinance transactions involve the payoff of an existing mortgage secured by the manufactured home and land (or existing liens if the home and land were encumbered by separate liens). The maximum LTV ratio (and CLTV ratio, if applicable) for a limited cash-out
Slide 30: Refinance Transactions
Refinance Transactions Cash-out refinance: – Involves the payoff of an existing first lien mortgage secured by the manufactured home and land (or existing liens if the home and land were encumbered by separate first liens); or – Enables the property owner to obtain a mortgage on a property that does
Slide 31: General Appraisal Requirements
General Appraisal Requirements To be acceptable – The appraisal must be completed on Fannie Mae Form 1004C – Cost approach must be completed and reviewed by the lender – At least two comparable sales that are used must be manufactured homes – Appraisers must review the completed and executed purchas
Slide 32: Appraisal Requirements
Appraisal Requirements https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B4- Underwriting-Property/#Overview Manufactured Housing Fannie Mae Overview 31
Slide 33: Form 1004C
Form 1004C Manufactured Housing Fannie Mae Overview 32
Slide 34: Must Have Information Within The Appraisal
Must Have Information Within The Appraisal – Manufacturer’s name, – Trade or model number, – Year of manufacture, – Serial number, – Certification Label number(s) from either the HUD Data Plate or Certification Label(s), – Type of foundation and utility connections, – Detailed and supported cost app
Slide 35: Uniform Appraisal Dataset Requirements Do Not Apply
#1 #2 #3 #4 #5 #7 #6 #9 #8 #10 1. Property Address 6. Project Type, if applicable 2. Borrower 7. Occupant 3. Owner of Public Record 8. HOA fees, if applicable 4. R.E. Taxes 9. Property Rights The land must be owned in fee 5. Neighborhood Name simple. 10. Lender Client Uniform Appraisal Dataset Req
Slide 36: Manufacturer's Invoice Retailer's Name
#11 #12 #13 #14 #16 #15 11. Sales Contract Reviewed 12. Contract Information 13. Seller/Owner of Public Record 14. Financial Assistance 15. Manufacturer’s Invoice The lender must provide the appraiser with a copy of the manufacturer's invoice if the borrower purchased a new manufactured home. 16. Re
Slide 37: Neighborhood Characteristics, Manufactured Housing Trends
#17 #18 #19 #20 #21 #22 #23 17. Neighborhood Characteristics 18. Manufactured Housing Trends 19. Manufactured Housing 20. Present Land Use % 21. Neighborhood Boundaries 22. Neighborhood Description 23. Market Conditions Manufactured Housing Fannie Mae Overview 36
Slide 38: Uniform Appraisal Dataset Requirements Do Not Apply
#24 #25 #26 #27 24. Dimensions 25. View 26. Zoning Description 27. Street Maintained Uniform Appraisal Dataset Requirements Do Not Apply To Manufactured Home Appraisal Reports Manufactured Housing Fannie Mae Overview 37
Slide 39: HUD Data Plate
#28 28. HUD Data Plate Manufactured homes are built entirely in a factory under a federal building code administered by the U.S. Department of Housing and Urban Development (HUD). They are built to the Federal Manufactured Home Construction and Safety Standards (commonly known as the HUD Code). This
Slide 40: HUD Data Plate/Compliance Certificate
HUD Data Plate/Compliance Certificate What is a Data Plate? The HUD Data Plate is a paper document located on the interior of the subject property that contains, among other things, the manufacturer’s name and trade/model number. In addition to the data required by Fannie Mae, the Data Plate include
Slide 41: HUD Data Plate/HUD Compliance Certificate
HUD Data Plate/HUD Compliance Certificate Manufactured Housing Fannie Mae Overview 40
Slide 42: HUD Data Plate/HUD Compliance Certificate
HUD Data Plate/HUD Compliance Certificate Manufactured Housing Fannie Mae Overview 41
Slide 43: HUD Data Plate/Compliance Certificate
HUD Data Plate/Compliance Certificate HUD Data Plate/Compliance Certificate – HUD does not reissue tags for manufactured homes – HUD can issue a letter of label (tag) verification for units in which it can locate the necessary historical information – Label numbers can be found on a data plate insid
Slide 44: HUD Certification Label
#29 29. HUD Certification Label Manufactured Housing Fannie Mae Overview 43
Slide 45: HUD Certification Label/Plate
HUD Certification Label/Plate Manufactured Housing Fannie Mae Overview 44
Slide 46: HUD Certification Label/Plate
HUD Certification Label/Plate Manufactured Housing Fannie Mae Overview 45
Slide 47: HUD Certification Label/Plate
HUD Certification Label/Plate What is a HUD Certification Label/Plate? – It is also known as the HUD tag or a metal plate that is affixed to the outside of the manufactured home. – Section 3280.11(b) states “"The label shall be approximately 2 in. by 4 in. in size and shall be permanently attached t
Slide 48: Resources To Obtain Duplicate Labels
Resources To Obtain “Duplicate” Labels https://www.hud.gov/program_offices/housing/rmra/mhs/mhslabels Manufactured Housing Fannie Mae Overview 47
Slide 49: Fannie Mae Requirements
Fannie Mae Requirements HUD Data Plate/Compliance Certificate and Alternatives https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B2-Eligibility/Chapter-B2-3-Property-Eligibility/ Manufactured Housing Fannie Mae Overview 48
Slide 50: HUD Certification Label Q and A
HUD Certification Label Q and A https://www.hud.gov/program_offices/housing/rmra/mhs/mhslabels Manufactured Housing Fannie Mae Overview 49
Slide 51: Manufacturer's Serial#/VIN# & HUD Certification Label #
#30 29. HUD 30. Manufacturer’s Serial#/VIN# & HUD Certification Label # Manufactured Housing Fannie Mae Overview 50
Slide 52: Special Property Eligibility
Special Property Eligibility Reminder https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B2-Eligibility/Chapter-B2-3-Property-Eligibility/ Manufactured Housing Fannie Mae Overview 51
Slide 53: General Description, Foundation
#31 #32 #33 31) General Description 32) Foundation Foundation Requirements The manufactured home must be permanently affixed to a foundation system designed by a licensed professional engineer. New closing requirements include a requirement that the lender instruct its closing agents to obtain spe
Slide 54: Review Comments made by appraiser
#34 34. Review Comments made by appraiser Manufactured Housing Fannie Mae Overview 53
Slide 55: Towing Hitch, Wheels and Axles Removed; Sewage & Utilities
#35 #36 35. Towing Hitch, wheels and axles removed 36. Sewage & Utilities Manufactured Housing Fannie Mae Overview 54
Slide 56: Minimum Width and Square Feet; Quality of Construction
#37 #38 37. See minimum width, square feet or type requirements from your Investors 38. Quality of Construction Manufactured Housing Fannie Mae Overview 55
Slide 57: Manufactured Housing Fannie Mae Overview
Manufactured Housing Fannie Mae Overview 56
Slide 58: Manufactured Housing Fannie Mae Overview
Manufactured Housing Fannie Mae Overview 57
Slide 59: Not Acceptable
Not Acceptable Manufactured Housing Fannie Mae Overview 58
Slide 60: Not Acceptable
Not Acceptable Ridgeway, SC Manufactured Housing Fannie Mae Overview 59 59
Slide 61: Manufactured or Trailer?
Manufactured or Trailer? Manufactured Housing Fannie Mae Overview 60
Slide 62: Appraisal Considerations
Appraisal Considerations Ineligible Manufactured Homes and Prohibited Practices – If the site or manufactured home is substantially non-conforming with the neighborhood such that a reliable appraisal cannot be made, the mortgage is NOT eligible for delivery to Fannie Mae. – Creating comparable sales
Slide 63: Cost Approach
Cost Approach By completing the cost approach analysis it allows the appraiser to: – recognize differences in manufactured home construction quality, – understand the difference between the comparable sales and the subject property, – extract from the market appropriate adjustments for the sales com
Slide 64: Sales Comparison Grid
Sales Comparison Grid Basic Grid Reading, General Best Practices and Guidelines Manufactured Housing Fannie Mae Overview 63
Slide 65: Comparable Selection
Comparable Selection* *Excludes MH Advantage Properties https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B4-Underwriting-Property/Chapter-B4-1-Appraisal- Requirements/#Manufactured.20Housing.20Appraisal.20Comparable.20Selection.20Requirements.20Excluding.20MH.20Adva
Slide 66: Sales Comparison
#39 39. Sales Comparison Manufactured Housing Fannie Mae Overview 65
Slide 67: Sources of Market Data
Sources of Market Data Requirements – Traditional appraisal data sources do not provide enough quality manufactured home data for the appraiser to develop a supportable and well-documented manufactured home appraisal – Sources such as MLS and public records are important, appraisers must develop oth
Slide 68: Sources of Market Data
Sources of Market Data Requirements – Another source of information is the Marshall and Swift Residential Cost Handbook. Marshall & Swift provides: • Information that allows the user to arrive at an estimate of the cost of the manufactured home when new (i.e. replacement cost) based on among other t
Slide 69: Transfer History
#40 40. Transfer History It is a Red Flag for inflated value. Any increase in value must be supported by the market, by repairs or by improvements that can be documented and supported. If subject was purchased at below market value, comments from the appraiser are required to address why and how
Slide 70: As Is, Subject to; Values; Date of Inspection
#41 #42 #43 #44 41. Summary 42. Values 43. “As Is”, Subject to…, 44. Value & Date of Inspection Manufactured Housing Fannie Mae Overview 69
Slide 71: Additional Comments
#45 45. Additional Comments Manufactured Housing Fannie Mae Overview 70
Slide 72: Additional Comments
Additional Comments Key for Manufactured Homes – Marketability, conforms to the neighborhood, accepted by the market, #45 Manufactured Housing Fannie Mae Overview 71
Slide 73: Red Flags
Red Flags Common Concerns – You see wheels and hitch in the photographs- Spend time looking at the subject and comparable photos – Metal skirting around the foundation of collateral – Non-pitched roof, (or cathedral ceiling with no attic) – Wood steps to the front door – Possible alterations to the
Slide 74: Property Type Requirements – A Recap
Property Type Requirements – A Recap Manufactured Housing Fannie Mae Overview 73
Slide 75: Fannie Mae Resources
Fannie Mae Resources Website, Product Matrix Manufactured Housing Fannie Mae Overview 74
Slide 76: Fannie Mae Website
Fannie Mae Website https://singlefamily.fanniemae.com/originating-underwriting/mortgage- products/manufactured-housing-financing https://singlefamily.fanniemae.com/faq-manufactured-housing Manufactured Housing Fannie Mae Overview 75
Slide 77: Manufactured Home Matrix
Manufactured Home Matrix https://singlefamily.fanniemae.com/originating-underwriting/mortgage-products/manufactured-housing-product-matrix Manufactured Housing Fannie Mae Overview 76
Slide 78: Manufactured Housing Product Matrix
https://singlefamily.fanniemae.com/originating-underwriting/mortgage-products/manufactured-housing-product-matrix Manufactured Housing Fannie Mae Overview 77
Slide 79: Manufactured Housing Product Matrix
https://singlefamily.fanniemae.com/originating-underwriting/mortgage-products/manufactured-housing-product-matrix Manufactured Housing Fannie Mae Overview 78
Slide 80: Manufactured Housing Legal Considerations
Manufactured Housing Legal Considerations https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B5-Unique- Eligibility-Underwriting-Considerations/Chapter-B5-2-Manufactured-Housing/ Manufactured Housing Fannie Mae Overview 79
Slide 81: Manufactured Housing Legal Considerations
Manufactured Housing Legal Considerations https://singlefamily.fanniemae.com/media/18186/display https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B5-Unique-Eligibility-Underwriting-Considerations/#Affidavit.20of.20Affixture Manufactured Housing Fannie Mae Overview 8
Slide 82: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Manufactured Housing Fannie Mae Overview 81
Slide 83: Genworth Rate Express
Genworth Rate Express® Manufactured Housing Fannie Mae Overview 82
Slide 84: LOS Connections
LOS Connections Manufactured Housing Fannie Mae Overview 83
Slide 85: Training Tools and Information
Training Tools and Information Manufactured Housing Fannie Mae Overview 84
Slide 86: Training Tools and Information
Training Tools and Information Manufactured Housing Fannie Mae Overview 85
Slide 87: Additional MI Site Information
Additional MI Site Information Manufactured Housing Fannie Mae Overview 86
Slide 88: Your Genworth Resources
Your Genworth Resources ➢ ActionCenter®: 800 444.5664 ➢ Your Local Genworth Regional Underwriter ➢ Your Genworth Sales Representative Manufactured Housing Fannie Mae Overview 87
Slide 89: 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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