Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (August 2018)
33 slides from Enact's investor presentation, August 2018
Slide 1: Fannie Mae and Freddie Mac: Understanding Your Options
Fannie Mae and Freddie Mac: Understanding Your Options August 2018 Genworth Mortgage Insurance Corporation ©2018 Genworth Financial, Inc. All rights reserved.
Slide 2: Course Objectives
Course Objectives – Learn how to properly structure a loan to your advantage, by understanding differences between Fannie Mae and Freddie Mac qualifying guidelines – Save time up front by knowing which GSE to select, when both are an option NOTE: This is NOT a comprehensive list of all differences,
Slide 3: Agenda
Agenda – LTV Differences – Credit and liabilities – Assets and Reserves – Income – Multiple Financed Properties – Interested Party Contributions – Appraisal – General Reminders on Updates ® ® – HomeReady and Home Possible Differences – Genworth MI Website – Helpful Tools Fannie Mae and Freddie Mac:
Slide 4: LTV Differences Primary and Second Home
LTV Differences Primary and Second Home Fannie Mae (Fixed Rate/ARMS**) Freddie Mac (Fixed Rate/ARMS) – Maximum LTV/TLTV/HCLTV – Maximum LTV/TLTV/HTLTV Purchase and Limited Cash-Out Refi Purchase and No Cash-Out Refi* – 1-unit Primary 97 (Fixed Only)** – 1-unit Primary 97 (Fixed only)
Slide 5: LTV Differences Investment Properties
LTV Differences Investment Properties Fannie Mae (Fixed Rate/ARMS) Freddie Mac (Fixed Rate/ARMS) – Maximum LTV/TLTV/HCLTV – Maximum LTV/TLTV/HTLTV Purchase Purchase and *No Cash-out Refi – 1-unit 85% – 1-unit Primary 85%( One unit refi has – 2-4 unit 75% the advantage) Limited Cash-O
Slide 6: Credit and Liabilities
Credit and Liabilities Fannie Mae Freddie Mac – Maximum DTI is 50% – No published maximum DTI • Updated to not require additional compensating factors from 45% to 50% • Fine-tuned in Jan. 2018 – DU® carries out DTI to two decimal – Rounds down on the DTI places – 20.49% = 20% – 20.99% = 20.9
Slide 7: Credit and Liabilities
Credit and Liabilities Fannie Mae Freddie Mac – 30 Day Charge Accounts or Open – 30 Day Charge Accounts or Open Ended Accounts Ended Accounts • Must be omitted and funds verified to • Can be omitted and funded verified to pay off (reserves); or pay off (reserves); or • Verify employer reimbu
Slide 8: Credit and Liabilities
Credit and Liabilities Fannie Mae Freddie Mac – Disputed tradelines DU tries to – Disputed tradelines Loan Product assess with the tradeline - if Approve, Advisor tries to qualify with disputed no additional action needed tradeline • DU will reassess without disputed • Will receive “Invalid”
Slide 9: Credit and Liabilities
Credit and Liabilities Fannie Mae Freddie Mac – Student Loan debt lender may use: – *Deferred student loans use • Payment on credit report if one is listed • The greater of monthly payment on the • Monthly payment from student loan credit report; or documents • 1% of the original loan balanc
Slide 10: Credit and Liabilities
Credit and Liabilities Fannie Mae Freddie Mac – *Student Loan in Forgiveness, cancellation, discharge and employment contingent repayment programs – Monthly payment amount may be excluded from DTI, if file contains evidence • Student loans have less than 10 months payments; or • Payments are
Slide 11: Fannie Mae Student Loan Cash-Out Refinance
Fannie Mae Student Loan Cash-Out Refinance Priced as Limited Cash Out – Subject to Cash-out LTV limits Fannie Mae and Freddie Mac: Understanding Your Options 11
Slide 12: ALL Borrowers Without Credit Scores
ALL Borrowers Without Credit Scores Fannie Mae DU Freddie Mac Loan Product Advisor – Max LTV/CLTV/HCLTV 90% – Max LTV/TLTV/HTLTV 95% – 1-unit non-manufactured home – 1-unit non-manufactured home – Conforming only; no high balance – Conforming only; no super conforming – Owner occupied only –
Slide 13: Credit and Liabilities
Credit and Liabilities Fannie Mae Freddie Mac – Federal Tax Liens – Federal Tax Liens – Allowed to include the payment due – No policy to allow for payments under a federal income tax installment agreement in the DTI, instead of payment in full • Lenders must obtain a copy of the approved IR
Slide 14: Significant Derogatory Credit
Significant Derogatory Credit Fannie Mae Freddie Mac – Approve/Eligible – Accept/Eligible • Lenders must review the waiting period • Loan Product Advisor has determined before origination of the new loan the credit reputation is acceptable • Extenuating circumstances – Caution: Lenders must
Slide 15: Assets and Reserves
Assets and Reserves Fannie Mae Freddie Mac – Use of business assets for closing – Use of business assets for closing • NO specific policy on review of large • Policy allows to document two months deposits on business statements business account statements • Deposits must make sense for the •
Slide 16: Assets and Reserves
Assets and Reserves Fannie Mae Freddie Mac – Two months asset statements for – Streamlined Accept One month ALL DU loans assets statements – Standard Documentation Two months asset statements Today’s Presentation Covers Non-HARP Loans And Guidelines Applicable To Loans Submitted To Desktop U
Slide 17: Self-Employment
Self-Employment Fannie Mae SEB Documentation Freddie Mac – One or two years, based on DU findings SEB Documentation message – Must be self-employed > 5 years to – Business returns may be waived if only obtain 1 year personal and business in existence for 5 years, business tax return inco
Slide 18: Income Commencing After The Note Date
Income Commencing After The Note Date Fannie Mae Fannie Mae and Freddie Mac: Understanding Your Options 18
Slide 19: Income Commencing After The Note Date
Income Commencing After The Note Date Freddie Mac – For Option Two, verifying income and liquid assets to pay expenses until employment starts (no plus one month) Fannie Mae and Freddie Mac: Understanding Your Options 19
Slide 20: Income Commencing After The Note Date
Income Commencing After The Note Date Freddie Mac – For Option Two, verifying income and liquid assets to pay expenses until employment starts (no plus one month) Fannie Mae and Freddie Mac: Understanding Your Options 20
Slide 21: Income
Income Fannie Mae Freddie Mac – Restricted Stock and Restricted Stock – Restricted Stock and Restricted Stock Units Units may be considered, under • No policy for the use as income certain conditions • Two year consecutive history of receipt • To be considered for history of receipt, RS and
Slide 22: Multiple Financed Properties
Multiple Financed Properties Fannie Mae Freddie Mac (Effective August 20) – Maximum number is 10 – Maximum number is 10 – Reserves based on UPB for each – Reserves based on PITIA for each financed second home or investment financed second home or investment property borrower owns and is prop
Slide 23: Interested Party Contributions
Interested Party Contributions Fannie Mae Freddie Mac – Calculates from the sales price – Calculates from the “value*” – Freddie Mac definition of value is lesser of sales price or appraised value, as of note date Percentages Are The Same For Both Fannie Mae And Freddie Mac They Just Calcula
Slide 24: PIW Eligible and ACE Differences
PIW Eligible and ACE Differences Fannie Mae Freddie Mac – PIW Eligible – Automated Collateral Evaluation • One Unit, including Condos (ACE) • Primary, second homes and investment • 1 unit primary or second home properties • Includes Condo 7/2018 • Purchases primary homes and second • No inve
Slide 25: Miscellaneous Eligibility
Miscellaneous Eligibility Did You Know? – Fannie Mae aligned their ARM and fixed rate LTVs (up to 95%) – Fannie Mae treats timeshares as installment debt, regardless of how they appear on the credit report – DU 10.1 was updated in 2017 to allow for more loans to include only one year tax return,
Slide 26: Home Possible information effective July 29
*Home Possible information effective July 29 Fannie Mae and Freddie Mac: Understanding Your Options 26
Slide 27: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Fannie Mae and Freddie Mac: Understanding Your Options 27
Slide 28: Genworth Rate Express
Genworth Rate Express® Fannie Mae and Freddie Mac: Understanding Your Options 28
Slide 29: LOS Connections
LOS Connections Fannie Mae and Freddie Mac: Understanding Your Options 29
Slide 30: Training Tools and Information
Training Tools and Information Fannie Mae and Freddie Mac: Understanding Your Options 30
Slide 31: Training Tools and Information
Training Tools and Information Fannie Mae and Freddie Mac: Understanding Your Options 31
Slide 32: Your Genworth Resources
Your Genworth Resources ActionCenter®: 800 444.5664 Your Local Genworth Regional Underwriter Your Genworth Sales Representative Fannie Mae and Freddie Mac: Understanding Your Options 32
Slide 33: 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