Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (June 2020)
58 slides from Enact's investor presentation, June 2020
Slide 1: Appraisal Underwriting: Part I - The Basics
Appraisal Underwriting: Part I - The Basics June 2020 Customer Education Brought to you by: Genworth Customer Development and Process Consulting ©2020 Genworth Financial, Inc. All rights reserved. 0
Slide 2: Session Overview
Session Overview Participants will learn about analyzing the Uniform Residential Appraisal Report – URAR – Fannie Mae Form 1004 – Freddie Mac Form 70 Resources available The roles of the appraisal, the appraiser and the underwriter/reviewer Appraisal exhibits Each section and dat
Slide 3: Additional Genworth Appraisal Training
Additional Genworth Appraisal Training Genworth offers training on other specific appraisal topics: – Manufactured Housing – Rural Properties Visit Our For Additional Informationwww.mi.genworth.com/Training Appraisal Underwriting 2
Slide 4: Genworth Appraisal Review Checklist
Genworth Appraisal Review Checklist https://new-content.mortgageinsurance.genworth.com/documents/uw-tips-and-credit- policy/Appraisal%20Review%20Checklist.pdf https://new-content.mortgageinsurance.genworth.com/documents/uw- Page 3 tips-and-credit-policy/Appraisal%20Review%20Checklist%20-%202- 4%20un
Slide 5: COVID-19 Updates!!
COVID-19 Updates!! Fannie Mae and Freddie Mac released appraisal policy changes March 23, 2020 https://singlefamily.fanniemae.com/media/22321/display https://guide.freddiemac.com/app/guide/content/a_id/1003723 Appraisal Underwriting 4
Slide 6: Fannie Mae LL-2020-04
Fannie Mae LL-2020-04 Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31, 2020 – Temporary appraisal requirement flexibilities: Allowing exterior-only inspection appraisal or desktop appraisals for certain transactions, see
Slide 7: Fannie Mae LL-2020-04
Fannie Mae LL-2020-04 Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31, 2020: – New Construction: where appraisals are “subject to completion per plans and specifications” and when properties are 100% complete but an inter
Slide 8: Fannie Mae LL-2020-04
Fannie Mae LL-2020-04 Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31, 2020: – Appraisal waivers: encouraging lenders to accept waiver offers when eligible – No changes to delivery at this time – Completion report (Form 1
Slide 9: Fannie Mae LL-2020-04
Fannie Mae LL-2020-04 Fannie Mae appraisal policies are effective immediately and have been extended for applications taken on or before July 31, 2020: – Virtual inspections: • Appraisers may use virtual inspection methods to augment the data and imagery that is used for either a desktop or exte
Slide 10: Bulletin 2020-5 & 2020-23
Bulletin 2020-5 & 2020-23 Guidance Related to COVID-19: – 2020-05 original appraisal flexibilities – 2020-23 extends policies to July 31, 202 https://guide.freddiemac.com/app/guide/content/a_id/1003723 https://guide.freddiemac.com/ci/okcsFattach/get/1003909_7 Appraisal Underwriting 9
Slide 11: Bulletin 2020-5
Bulletin 2020-5 The temporary flexibilities are effective immediately for all Mortgages in process and remain in place for Mortgages with Applications Received on or before July 31, 2020. Appraisal Flexibilities Include: – Temporary appraisal requirement flexibilities: Allowing exterior-only
Slide 12: Bulletin 2020-5
Bulletin 2020-5 The temporary flexibilities are effective immediately for all Mortgages in process and remain in place for Mortgages Applications Received on or before May 17,2020 to Mortgages with Application Received Dates through July 31,2020 Appraisal Flexibilities Include: – Appraisal w
Slide 13: Bulletin 2020-5
Bulletin 2020-5 The temporary flexibilities are effective immediately for all Mortgages in process and remain in place for Mortgages with Applications Received on or before July 31, 2020. Appraisal Flexibilities: Appraisal Underwriting 12
Slide 14: Bulletin 2020-8
Bulletin 2020-8 The temporary flexibilities are effective immediately for all Mortgages in process and remain in place for Mortgages with Applications Received on or before July 31, 2020 Appraisal Flexibilities Include: – For new construction properties, where the appraisal was completed “su
Slide 15: Bulletin 2020-8
Bulletin 2020-8 The temporary flexibilities are effective immediately for all Mortgages in process and remain in place for Mortgages with Applications Received on or before July 31, 2020 Appraisal Flexibilities Include: – For new construction properties, where the appraisal was completed “su
Slide 16: COVID-19 Update- Bulletin 2020-11
COVID-19 Update- Bulletin 2020-11 Additional Guidance Related to Covid-19 See Bulletin 2020-11 for Condominium flexibilities and CHOICERenovation LoansSM flexibilities for borrowers on forbearance https://guide.freddiemac.com/app/guide/bulletin/2020-11 Appraisal Underwriting 15
Slide 17: Bulletin 2020-11
Bulletin 2020-11 The temporary flexibilities are effective immediately for all Mortgages in process and remain in place for Mortgages with Applications Received on or before July 31, 2020. Appraisal Flexibilities Include: Map reference field for desktop and exterior-only appraisals Fredd
Slide 18: Bulletin 2020-11
Bulletin 2020-11 The temporary flexibilities are effective immediately for all Mortgages in process and remain in place for Mortgages with Applications Received on or before July 31, 2020. Appraisal Flexibilities Include: Virtual Inspections for Appraisals Appraisers may use virtual insp
Slide 19: Appraisal Basics
Appraisal Basics URAR Overview, Market Value, Appraiser and Reviewer Responsibilities Appraisal Underwriting 18
Slide 20: Appraisal Basics
Appraisal Basics The appraisal report provides: – Detailed description of the property – Condition and marketability information – Market value • Appraiser’s opinion • Supporting detail on how the appraiser arrived at the opinion – Additional property issues/information Page 4 Appraisal Underwri
Slide 21: Appraisal Basics: Market Value
Appraisal Basics Market Value – The buyer and seller are typically motivated – Both parties are well informed/advised, each acting in what he/she considers his/her own best interest – A reasonable amount of time is allowed for exposure in the open market – Payment is made in terms of US dollars
Slide 22: Appraisal Basics: Seller/Lender Responsibilities
Appraisal Basics Seller/Lender Responsibilities – Providing Appraiser With • Sales Contract (See Fannie Mae updates on next slide) • Other Available Information – Selecting the Appraiser and General Appraisal Requirements – Underwriting the Appraisal – Disclosing Required Information – Ensuring
Slide 23: Appraisal Basics: Appraiser Responsibilities
Appraisal Basics Appraiser Responsibilities – An accurate, adequately supported opinion of market value – An objective analysis of quantifiable data to support housing trends – All relevant information that supports the conclusions about market conditions, including: • Sales/financing concession
Slide 24: Appraisal Basics: Reviewer/Underwriter Responsibilities
Appraisal Basics Reviewer/Underwriter Responsibilities – Completeness – Appropriate Form – Opinion of market value supported – Consistency – Market issues noted – All attachments/addenda provided – Ensure UAD requirements are met – The appraisal meets the applicable lending standards Page 9 Appr
Slide 25: Appraisal Basics
Appraisal Basics If there is inconsistent data: – Appraiser explanation is necessary – Investors may be apprehensive to purchase the loan Page 9 Appraisal Underwriting 24
Slide 26: Appraisal Basics
Appraisal Basics Loans being sold to a GSE must include at least the following: – Clear pictures of the subject property that support the information on the appraisal: • Front View • Rear View • Street Scene • Kitchen • Bathrooms • Main Living Area • Outbuildings – Building Sketch – Additional p
Slide 27: Section-by-Section Review
Section-by-Section Review URAR Page 1: Subject, Contract, Neighborhood, Site and Improvements Sections Appraisal Underwriting 26
Slide 28: Subject Section
Subject Section Page 11-15 Appraisal Underwriting 27
Slide 29: Subject Section
Subject Section Page 15 Fannie Mae Requires Properties That Are Listed For Sale As Of Application Date For a Cash Out Refinance Be Taken Off The Market On Or Before The Disbursement Date Of The New Mortgage Appraisal Underwriting 28
Slide 30: Contract Section
Contract Section Page 16-18 Appraisal Underwriting 29
Slide 31: Contract Section-Fannie Mae
Contract Section-Fannie Mae Appraisal Underwriting 30
Slide 32: Contract Section-Freddie Mac
Contract Section-Freddie Mac Appraisal Underwriting 31
Slide 33: Neighborhood Section
Neighborhood Section Page 19-22 Appraisal Underwriting 32
Slide 34: Neighborhood Section Condominiums
Neighborhood Section Condominiums Not In book Appraisal Underwriting 33
Slide 35: Site Section
Site Section Page 23-26 Appraisal Underwriting 34
Slide 36: Improvements Section
Improvements Section Page 27-32 Appraisal Underwriting 35
Slide 37: Accessory Units
Accessory Units Appraisal Underwriting 36
Slide 38: Accessory Units
Accessory Units Appraisal Underwriting 37
Slide 39: Accessory Units – Freddie Mac
Accessory Units – Freddie Mac Bulletin 2019-09 Appraisal Underwriting 38
Slide 40: Improvements Section
Improvements Section Page 27-32 Appraisal Underwriting 39
Slide 41: Additional Improvement Considerations
Additional Improvement Considerations A Few Other Property Concerns: – Additions without Permits: If the appraiser identifies an addition(s) that does not have the required permit, the appraiser must comment on the quality and appearance of the work and its impact, if any, on the market value of
Slide 42: Project Information Condominiums
Project Information Condominiums Project Description General Description Subject Phase Is Project Complete or Incomplete Page 33 Appraisal Underwriting 41 41
Slide 43: Project Information Condominiums
Project Information Condominiums Primary Occupancy-General Guidelines Check Specific Investor Project Requirements As They Vary And Can Change Management Group- Who is in control? Generally, GSEs do not allow for more than 15% of homeowners association dues or assessments are to be delinquent more
Slide 44: Project Information Condominiums
Project Information Condominiums Is the Project a Conversion? Soundness and condition-For a conversion that was legally created in the most recent three years, either: 1.The architect's/engineer's report or a functional equivalent originally obtained for the conversion must comment favorably on th
Slide 45: Project Information Condominiums
Project Information Condominiums Condition & Quality of Construction Common Elements & Recreational Facilities Common Elements such as parking and recreational facilities must be consistent with the nature of the project and be competitive in the market. 1.The unit owners must be the sole owners o
Slide 46: Project Analysis Condominiums
Project Analysis Condominiums Analysis of the Budget The budget must be consistent with the nature of the project. Review specific investor requirements. Additional Fees Page 36 Special or Unusual Characteristics Appraisal Underwriting 45 45
Slide 47: Unit Description Condominiums
Unit Description Condominiums $ Per Square feet of GLA General Description Car Storage Page 37 Appraisal Underwriting 46 46
Slide 48: Project Questionnaire
Project Questionnaire Condo Reminders – The project itself must be approved for Fannie Mae and Freddie Mac otherwise it is an “Unwarrantable Project” that you portfolio or sell to a private investor – Guidelines Change often so always check the guidelines for compliance – Condo project status can ch
Slide 49: Fannie Mae Condo Eligibility
Fannie Mae Condo Eligibility https://singlefamily.fanniemae.com/originating-underwriting/condo-co-op-and-pud-eligibility Appraisal Underwriting 48
Slide 50: Freddie Mac Project Reviews
Freddie Mac Project Reviews http://www.freddiemac.com/singlefamily/factsheets/sell/condo_projects.html Appraisal Underwriting 49
Slide 51: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Appraisal Underwriting 50
Slide 52: Genworth Rate Express
Genworth Rate Express® Appraisal Underwriting 51
Slide 53: LOS Connections
LOS Connections Appraisal Underwriting 52
Slide 54: Training Tools and Information
Training Tools and Information Appraisal Underwriting 53
Slide 55: Training Tools and Information
Training Tools and Information Appraisal Underwriting 54
Slide 56: Additional MI Site Information
Additional MI Site Information Appraisal Underwriting 55
Slide 57: Your Genworth Resources
Your Genworth Resources ActionCenter®: 800 444.5664 Your Local Genworth Regional Underwriter Your Genworth Sales Representative Appraisal Underwriting 56
Slide 58: 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