Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (February 2020)
50 slides from Enact's investor presentation, February 2020
Slide 1: Reviewing Miscellaneous Employment Income Sources
Reviewing Miscellaneous Employment Income Sources February 2020 ©2020 Genworth Financial, Inc. All rights reserved.
Slide 2: Objective
Objective Understand the Different Types of Income and How to Document Them – Commission – Bonus and Overtime – Tip Income – Temporary Leave – Seasonal & Unemployment Reviewing & Calculating Income from Miscellaneous Sources 1
Slide 3: Ability-to-Repay (ATR) Rule
Ability-to-Repay (ATR) Rule Key concepts of the rule: – The creditor must make a reasonable and good faith determination that the consumer has the ability to repay the loan. • Mortgage borrowers must provide ample financial documentation; lenders must verify the documents. • In order to be approved
Slide 4: The Mortgage Application 1003/65
The Mortgage Application 1003/65 Reviewing & Calculating Income from Miscellaneous Sources 3
Slide 5: Freddie Mac’s URLA Page
Freddie Mac’s URLA Page http://www.freddiemac.com/singlefamily/sell/ulad.html Reviewing & Calculating Income from Miscellaneous Sources 4
Slide 6: Fannie Mae’s URLA Page
Fannie Mae’s URLA Page https://www.fanniemae.com/singlefamily/uniform-residential-loan-application Reviewing & Calculating Income from Miscellaneous Sources 5
Slide 7: 9 pages 4 pages 2 pages
9 pages 4 pages 2 pages 1 page 1 page https://www.fanniemae.com/singlefamily/uniform-residential-loan-application Reviewing & Calculating Income from Miscellaneous Sources 6
Slide 8: Verifying Employment History
Verifying Employment History Two year history is required on the 1003 for all applicants – Spell out the full, complete business name and address. – Correctly identify type of employment: • Does the borrower receive a W2 or 1099? • If the borrower owns 25% or more of the business, they are self-empl
Slide 9: Verifying Employment History
Verifying Employment History *New * * Enter the Employer’s main number. Do NOT list the borrower’s personal work phone number that was collected in Section 1a. Reviewing & Calculating Income from Miscellaneous Sources •
Slide 10: Verifying Non-Employment Income
Verifying Non-Employment Income *New * Reviewing & Calculating Income from Miscellaneous Sources •
Slide 11: Freddie Mac
Freddie Mac Reviewing & Calculating Income from Miscellaneous Sources 10
Slide 12: Selling Guide Income Topic 5300 Revised
Selling Guide Income Topic 5300 Revised https://guide.freddiemac.com/app/guide/topic/5300 https://guide.freddiemac.com/app/guide/content/a_id/1000659 Reviewing & Calculating Income from Miscellaneous Sources 11
Slide 13: Selling Guide Income Topic 5305.2
Selling Guide Income Topic 5305.2 https://guide.freddiemac.com/app/guide/content/a_id/1000659 Reviewing & Calculating Income from Miscellaneous Sources 12
Slide 14: Income Continuance Requirements
Income Continuance Requirements Income continuance charts were added to Topic 5301.1 – Income and earnings types typically without documentable continuance – Income types with documentable continuance – Other income types that may or may not have documentable continuance Freddie Mac’s Single-Family
Slide 15: Employed Income Types
Employed Income Types Primary – Borrower’s primary source of employed income Secondary – Second job, part-time job or multiple jobs Additional – Commissions Primary – Bonus – Overtime Additional – Tips Secondary – Auto allowance – Mortgage differential – Military entitlements – Military Reserves & N
Slide 16: Loan Product Advisor Documentation Matrix
Loan Product Advisor Documentation Matrix https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf Reviewing & Calculating Income from Miscellaneous Sources 15
Slide 17: Fannie Mae
Fannie Mae Reviewing & Calculating Income from Miscellaneous Sources 16
Slide 18: Selling Guide
Selling Guide https://selling-guide.fanniemae.com/ Reviewing & Calculating Income from Miscellaneous Sources 17
Slide 19: Selling Guide
Selling Guide https://selling-guide.fanniemae.com/ Reviewing & Calculating Income from Miscellaneous Sources 18
Slide 20: Documenting Other Employment Income Types
Documenting Other Employment Income Types Reviewing & Calculating Income from Miscellaneous Sources 19
Slide 21: Fannie Mae Commission Income
Fannie Mae Commission Income https://selling-guide.fanniemae.com/ Reviewing & Calculating Income from Miscellaneous Sources 20
Slide 22: Freddie Mac Commission Income
Freddie Mac Commission Income https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf https://guide.freddiemac.com/app/guide/content/a_id/1000653 Reviewing & Calculating Income from Miscellaneous Sources 21
Slide 23: Bonus and Overtime
Bonus and Overtime https://selling-guide.fanniemae.com/ Reviewing & Calculating Income from Miscellaneous Sources 22
Slide 24: Variable Income
Variable Income https://www.fanniemae.com/content/guide/selling/b/index.html Reviewing & Calculating Income from Miscellaneous Sources 23
Slide 25: Freddie Mac Bonus and OT
Freddie Mac Bonus and OT Reviewing & Calculating Income from Miscellaneous Sources 24
Slide 26: Freddie Mac’s Loan Product Advisor - Bonus and OT
Freddie Mac’s Loan Product Advisor® - Bonus and OT https://guide.freddiemac.com/app/guide/content/a_id/1000653 Reviewing & Calculating Income from Miscellaneous Sources 25
Slide 27: Bulletins 2019-20 & 2020-01
Bulletins 2019-20 & 2020-01 https://guide.freddiemac.com/app/guide/bulletin/2019-20 https://guide.freddiemac.com/ci/okcsFattach/get/1003556_7 Reviewing & Calculating Income from Miscellaneous Sources 26
Slide 28: Tip Income - Fannie Mae DU
Tip Income - Fannie Mae DU https://www.fanniemae.com/content/guide/selling/b3/3.1/09.html#Tip.20Income Reviewing & Calculating Income from Miscellaneous Sources 27
Slide 29: Tip Income - Freddie Mac
Tip Income - Freddie Mac Tip income The Borrower must have a two-year consecutive history of receiving income from tips in order to consider the income for qualifying. For tip income that fluctuates, the Seller must evaluate the income trend and use the amount that is most likely to continue for the
Slide 30: Freddie Tip Income
Freddie Tip Income https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf Reviewing & Calculating Income from Miscellaneous Sources 29
Slide 31: Temporary Leave - Fannie Mae
Temporary Leave - Fannie Mae https://www.fanniemae.com/content/guide/selling/b3/3.1/09.html#Tip.20Income Reviewing & Calculating Income from Miscellaneous Sources 30
Slide 32: Temporary Leave - Fannie Mae
Temporary Leave - Fannie Mae https://www.fanniemae.com/content/guide/selling/b3/3.1/09.html#Tip.20Income Reviewing & Calculating Income from Miscellaneous Sources 31
Slide 33: Temporary Leave - Fannie Mae
Temporary Leave - Fannie Mae https://www.fanniemae.com/content/guide/selling/b3/3.1/09.html#Tip.20Income Reviewing & Calculating Income from Miscellaneous Sources 32
Slide 34: Temporary Leave - Freddie Mac
Temporary Leave - Freddie Mac https://guide.freddiemac.com/app/guide/content/a_id/1000655 Reviewing & Calculating Income from Miscellaneous Sources 33
Slide 35: Seasonal Employment and Unemployment
Seasonal Employment and Unemployment Seasonal employment and unemployment compensation The Borrower must have a two-year consecutive history of receiving income from seasonal employment and the seasonal employment income must be likely to continue for at least the next three years in order to consid
Slide 36: Seasonal Income - Fannie Mae
Seasonal Income - Fannie Mae https://selling-guide.fanniemae.com/ Reviewing & Calculating Income from Miscellaneous Sources 35
Slide 37: Freddie Mac – Seasonal Employment
Freddie Mac – Seasonal Employment https://guide.freddiemac.com/app/guide/content/a_id/1000652 Reviewing & Calculating Income from Miscellaneous Sources 36
Slide 38: Tax Return Review for Unemployment
Tax Return Review for Unemployment 2018 Appears on the Schedule 1 to the 1040 * *Note that all of the income types listed on Part I of Schedule 1 have changed on the 2019 tax form Reviewing & Calculating Income from Miscellaneous Sources 37
Slide 39: Unemployment - Fannie Mae
Unemployment - Fannie Mae https://www.fanniemae.com/content/guide/selling/b3/3.1/09.html#Tip.20Income Reviewing & Calculating Income from Miscellaneous Sources 38
Slide 40: Seasonal Income- Freddie Mac
Seasonal Income- Freddie Mac https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf Reviewing & Calculating Income from Miscellaneous Sources 39
Slide 41: Auto Allowance- Fannie Mae
Auto Allowance- Fannie Mae https://selling-guide.fanniemae.com/ Reviewing & Calculating Income from Miscellaneous Sources 40
Slide 42: Auto Allowance- Freddie Mac
Auto Allowance- Freddie Mac https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf Reviewing & Calculating Income from Miscellaneous Sources 41
Slide 43: Genworth Rate Express
Genworth Rate Express® mi.genworth.com Presentation Title Insert Legal Copy 42
Slide 44: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines mi.genworth.com Presentation Title Insert Legal Copy 43
Slide 45: LOS Connections
LOS Connections mi.genworth.com Presentation Title Insert Legal Copy 44
Slide 46: Training Tools and Information
Training Tools and Information mi.genworth.com Presentation Title Insert Legal Copy 45
Slide 47: Training Tools and Information
Training Tools and Information mi.genworth.com Presentation Title Insert Legal Copy 46
Slide 48: Additional MI Site Information
Additional MI Site Information mi.genworth.com Presentation Title Insert Legal Copy 47
Slide 49: Your Genworth Resources
Your Genworth Resources ActionCenter®: 800 444.5664 Your Local Genworth Regional Underwriter Your Genworth Sales Representative Presentation Title Insert Legal Copy 48
Slide 50: 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
Enact Holdings — Investor Presentation (February 2020) on 6ix