Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (June 2019)
45 slides from Enact's investor presentation, June 2019
Slide 1: Affordability Options
Affordability Options What are the Opportunities June 2019 Genworth Mortgage Insurance Corporation ©2019 Genworth Financial, Inc. All rights reserved.
Slide 2: Helping the Borrower
Helping the Borrower Have You Explored All Of The Options That Are Best For Your Borrower? • HomeReady® – Fannie Mae’s HomeReady is designed to help lenders confidently serve today’s market of creditworthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in low-incom
Slide 3: Agenda
Agenda In Today’s Session We Will Cover Overview and Benefits for HomeReady as well as Home Possible – Let’s start with HomeReady • Website • Overview and Benefits • Quick Facts • Pricing Benefits • MI Coverage Requirements • Marketing Center/Options • Genworth benefits and tools Affordability O
Slide 4: HomeReady Website
HomeReady Website https://www.fanniemae.com/singlefamily/homeready?cmpid=sln082515 Affordability Options 4
Slide 5: Benefits Fact Sheet and FAQ's
Benefits Fact Sheet and FAQ’s Affordability Options 5
Slide 6: HomeReady Product Matrix
HomeReady Product Matrix https://www.fanniemae.com/content/fact_sheet/homeready-product-matrix.pdf Affordability Options 6
Slide 7: HomeReady Quick Facts
HomeReady Quick Facts – Low down payment with up to 97% LTV financing for home purchases – CLTV up to 105% for loans with eligible Community Seconds® – Up to *97% Refinance available – Owner occupied (allows for non-occupying co-borrowers) – 2-4 unit, manufactured homes, condos, PUD eligible – 100%
Slide 8: HomeReady Quick Facts continued
HomeReady Quick Facts continued – Simple income eligibility – All property locations (Will apply to all new submissions to DU after July 20th and manually applications after July 20th) • 100% of area median income – Competitive pricing over standard pricing (LLPA’s) – All LLPA waived for transaction
Slide 9: Lender Letter-2019-06
Lender Letter-2019-06 Lender Letter-2019-06 During the weekend of July 20th Fannie Mae will update DU implementing changes. HomeReady income eligibility will be limited to 80% AMI in ALL areas including low income. Affordability Options 9
Slide 10: Fannie Mae LLPA Differences
Fannie Mae LLPA Differences Affordability Options 10
Slide 11: Fannie Mae LLPA Differences
Fannie Mae LLPA Differences Standard HomeReady 95% LTV- 1.25 95% LTV- 0.0% – *$2,500 – $0 95.01-97% LTV- 1.50 95.01-97% LTV- 0.0% – *$3,000 – $0 Example- 1 family, owner occupied, purchase, primary residence, fixed rate, non- manufactured property with a borrower underwriting
Slide 12: Fannie Mae Mortgage Insurance Coverages
Fannie Mae Mortgage Insurance Coverages Standard HomeReady 95% LTV- 30% Coverage 95% LTV- 25% Coverage – $180. monthly MI – $156.66 monthly MI 95.01-97% LTV- 35% Coverage 95.01-97% LTV- 25% Coverage – $233.33 monthly MI – $191.66 monthly MI Example- 1 family, owner occupied,
Slide 13: Fannie Mae Mortgage Insurance Coverages
Fannie Mae Mortgage Insurance Coverages Standard HomeReady 95% LTV- 30% Coverage 95% LTV- 25% Coverage – $160. monthly MI – $145.00 monthly MI 95.01-97% LTV- 35% Coverage 95.01-97% LTV- 25% Coverage – $201.67 monthly MI – $163.33 monthly MI For a loan with two borrowers, 97%
Slide 14: Standard Program vs. HomeReady
Standard Program vs. HomeReady 1 unit 95% LTV Owner Occupied $15.00 Monthly Savings Purchase *$2,500 Savings Primary Residence 97% LTV Fixed Rate $38.34 Monthly Savings @97% Non-manufactured property LTV Credit score of 680 *$3,000 Savings Loan amount is $200,000
Slide 15: Income Eligibility
Income Eligibility Use the Income Eligibility Tools to Determine Income Limitations Affordability Options 15
Slide 16: Example Property Match *100% AMI
Example Property Match *100% AMI *Fannie Mae has changed the Income Limits for ALL HomeReady loans not to exceed 80% AMI for the property’s location. The 2019 HomeReady income limits will also be implemented in DU and in the HomeReady Income Eligibility Lookup Tool the weekend of July 20th. Affordab
Slide 17: Fannie Mae Marketing Center
Fannie Mae Marketing Center Affordability Options 17
Slide 18: Freddie Mac's Home Possible Mortgage
Freddie Mac’s Home Possible Mortgage Affordability Options 18
Slide 19: Home Possible Website
Home Possible Website https://sf.freddiemac.com/working-with-us/origination-underwriting/mortgage-products/home-possible Affordability Options 19
Slide 20: Updates 2018-13
Updates 2018-13 Effective October 29, 2018 – Freddie Mac consolidated Home Possible and Home Possible Advantage into one program – Several enhancements were also made to the program Affordability Options 20
Slide 21: Home Possible Overview and Benefits
Home Possible Overview and Benefits http://www.freddiemac.com/singlefamily/factsheets/sell/pdf/home_possible_factsheet.pdf Affordability Options 21
Slide 22: Home Possible FAQs
Home Possible FAQs http://www.freddiemac.com/homepossible/home_possible_faq.html Affordability Options 22
Slide 23: Current Home Possible Quick Facts
Current Home Possible Quick Facts – Owner Occupied (Program does allow for non-occupying co- borrowers) – Purchase and no cash out refinancing – Maximum 97% LTV and 105% TLTV ratios for Home Possible with an Affordable Second® – Single Family, 2-4 unit properties, condos, manufactured homes – Borrow
Slide 24: Bulletin 2019-15
Bulletin 2019-15 Selling Updates This Bulletin updates Home Possible eligibility requirements to qualifying income must not exceed 80% of the area median income (AMI) for the property location. The revised requirements will apply to all Home Possible mortgages, including those secured by properties
Slide 25: Home Possible Quick Facts- Currently
Home Possible Quick Facts- Currently – Simple income eligibility – Low Income where median income at or below 80% of the AMI • No income limit – Low Income property locations • 100% of area median income – Easy to Use Income Eligibility Tool • Home Possible Income and Property Eligibility Tool Fredd
Slide 26: Freddie Mac's Home Possible Mortgages
Freddie Mac’s Home Possible Mortgages Home Possible Income Limits – The Borrower’s qualifying income converted to an annual basis must not exceed 80% of the area median income (AMI) for the location of the Mortgaged Premises. This will also apply in all low-income census tracts. To determine whe
Slide 27: Freddie Mac Income Limits
Freddie Mac Income Limits Affordability Options 27
Slide 28: Example 80% AMI Limit Property
Example 80% AMI Limit Property Freddie Mac plans to update Loan Product Advisor® and the Home Possible Income & Property Eligibility tool on July 28, 2019, to reflect the updated Borrower income limits (80% of the AMI), as well as the 2019 AMI limits. For Manually Underwritten Mortgages, the updated
Slide 29: Freddie Mac Credit Fees in Price
Freddie Mac Credit Fees in Price Affordability Options 29
Slide 30: Freddie Mac Credit Fees in Price
Freddie Mac Credit Fees in Price Affordability Options 30
Slide 31: Freddie Mac Credit Fees in Price
Freddie Mac Credit Fees in Price Affordability Options 31
Slide 32: Freddie Mac Credit Fees in Price Differences
Freddie Mac Credit Fees in Price Differences Standard Home Possible 95% LTV- 1.25 95% LTV- 0.0% – *$2,500 – $0 97% LTV – 1.50 95.01-97% LTV- 0.0% -* $3,000 – $0 Example- 1 family, owner occupied, purchase, primary residence, fixed rate, non-manufactured property with a borrower u
Slide 33: Mortgage Insurance Requirements
Mortgage Insurance Requirements Affordability Options 33
Slide 34: Freddie Mac Mortgage Insurance Coverages
Freddie Mac Mortgage Insurance Coverages Standard Home Possible 95% LTV- 30% Coverage 95% LTV- 25% Coverage – $160. monthly MI – $145.00 monthly MI 95.01-97% LTV- 35% Coverage* 95.01-97% LTV- 25% Coverage – $201.67 monthly MI – $163.33 monthly MI For a loan with two borrowers
Slide 35: Standard Program vs. Home Possible
Standard Program vs. Home Possible 1 unit 95% LTV Owner Occupied $15.00 Monthly Savings Purchase *$2,500 Savings Primary Residence 97% LTV Fixed Rate 97% LTV Allowed! Non-manufactured property $38.34 Monthly Savings @97% LTV Credit score of 680 based on convention
Slide 36: Freddie Mac Marketing Options
Freddie Mac Marketing Options Affordability Options 36
Slide 37: Homebuyer Education
Homebuyer Education Genworth’s online course helps you help more borrowers! – No fees! – Self-paced learning – Mobile device friendly – Pre and Post home purchase tips and resources – Emailed Certificate to you and your borrower upon Completion – Meets the National Industry Standards for Homeown
Slide 38: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Affordability Options 38
Slide 39: Genworth Rate Express
Genworth Rate Express® Affordability Options 39
Slide 40: LOS Connections
LOS Connections Affordability Options 40
Slide 41: Training Tools and Information
Training Tools and Information Affordability Options 41
Slide 42: Training Tools and Information
Training Tools and Information Affordability Options 42
Slide 43: Additional MI Site Information
Additional MI Site Information Affordability Options 43
Slide 44: Your Genworth Resources
Your Genworth Resources ActionCenter®: 800 444.5664 Your Local Genworth Regional Underwriter Your Genworth Sales Representative Affordability Options 44
Slide 45: 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