Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (August 2019)
88 slides from Enact's investor presentation, August 2019
Slide 1: Manufactured Housing: Fannie Mae and Genworth Guidelines
Manufactured Housing: Fannie Mae and Genworth Guidelines August 2019 ©2019 Genworth Financial, Inc. All rights reserved. 0
Slide 2: Agenda
Agenda What we will cover TM – Recent Updates including Fannie Mae’s MH Advantage 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 Home Appraisal Reports Ma
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 you 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 Is NOT A Manufactured Home
What Is NOT A Manufactured Home What is NOT a manufactured home – Factory built housing such as modular, prefabricated or panelized housing • Factory built homes begin as components and are designed, engineered and assembled in a controlled factory environment. These components come together at the
Slide 7: General Property Requirements
General Property Requirements Manufactured Homes Must – Be built in compliance with HUD 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 as evidenced by the HUD Certification Label
Slide 8: 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 – Dwelling
Slide 9: 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 10: Manufactured Homes
Manufactured Homes A Few 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 da
Slide 11: NEW C – P Manufactured Homes
NEW C – P Manufactured Homes Overview.. Sections of the Selling Guide for Complete Details https://www.fanniemae.com/content/guide/selling/b5/3.1/02.html https://www.fanniemae.com/content/guide/selling/b5/2/03.html Manufactured Housing Fannie Mae Overview 10
Slide 12: NEW C – P Manufactured Homes
NEW C – P 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 close and to build the home, once construction complete, second closing of fulling amortizing loan used to
Slide 13: MH Advantage
MH Advantage Flexibilities over standard manufactured housing include higher LTV ratios (97%LTV/105%CLTV), standard mortgage insurance and reduced LLPAs Participating manufacturers will allow a “MH Advantage Sticker” near the HUD Data Plate. The Sticker identifies the home as having been designed to
Slide 14: 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 13
Slide 15: MH Advantage
MH Advantage The Sticker Manufactured Housing Fannie Mae Overview 14
Slide 16: 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 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: Manufactured Housing Fannie Mae Overview 16
Slide 18: Potential Red Flag Message
Potential Red Flag Message 17
Slide 19: Fannie Mae Selling Guide
Fannie Mae Selling Guide 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 August 2019
Matrix August 2019 https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf Manufactured Housing Fannie Mae Overview 20
Slide 22: 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, unless located in a Fannie Mae-approved co- op, condo, or
Slide 23: Selling Guide Announcement 2014-03
Selling Guide Announcement 2014-03 Manufactured Housing Fannie Mae Overview 22
Slide 24: Minimum Down Payment
Minimum Down Payment A minimum down payment of 5% must come from the borrower’s own funds unless: – The LTV or CLTV ratio is less than or equal to 80%; – The borrower is purchasing a one-unit principal residence and meets the requirements to use gifts, donated grant funds, or funds received from an
Slide 25: Minimum Down Payment
Minimum Down Payment 2018 Selling Guide Part B, Section B5-2.03, Manufactured Housing 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. 2018 Selling Guide Part B, Section B5-2.03, Manufactured Housing Manufactured Housing Fannie Mae Overview
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: Refinance Transactions
Refinance Transactions Manufactured Housing Fannie Mae Overview 30
Slide 32: 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 complete and executed purchase
Slide 33: Appraisal Requirements
Appraisal Requirements https://www.fanniemae.com/content/guide/selling/b4/1.4/01.html Manufactured Housing Fannie Mae Overview 32
Slide 34: Form 1004C
Form 1004C Manufactured Housing Fannie Mae Overview 33
Slide 35: 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 36: 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 37: 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 38: 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 37
Slide 39: 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 38
Slide 40: 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 41: HUD Data Plate/Compliance Certificate
HUD Data Plate/Compliance Certificate What is a Data Plate? The Data Plate is a paper label affixed inside the home and is located in a kitchen cabinet, an electrical panel, or a bedroom closet. The Data Plate will contain the following information: (a) the name and address of the manufacturing plan
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/HUD Compliance Certificate
HUD Data Plate/HUD Compliance Certificate Manufactured Housing Fannie Mae Overview 42
Slide 44: 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 45: HUD Certification Label
#29 29. HUD Certification Label Manufactured Housing Fannie Mae Overview 44
Slide 46: 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 47: HUD Certification Label/Plate
HUD Certification Label/Plate Manufactured Housing Fannie Mae Overview 46
Slide 48: HUD Certification Label/Plate
HUD Certification Label/Plate Manufactured Housing Fannie Mae Overview 47
Slide 49: 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 48
Slide 50: 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 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 https://www.fanniemae.com/content/guide/selling/b2/3/02.html Manufactured Housing Fannie Mae Overview 51
Slide 53: General Description and 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: Modifications, Towing, Sewage & Utilities
#34 #35 #36 34. *licensed professional engineer or the local or state authority has to approve any structural modifications to the manufactured home 35. Towing Hitch, wheels and axles removed 36. Sewage & Utilities * HUD Requirement-Additions, Modifications, and Special State Requirements - Additi
Slide 55: B2-3-02: Special Property Eligibility: Factory-Built Housing
B2-3-02: Special Property Eligibility and Underwriting Considerations: Factory-Built Housing (10/02/2018) Manufactured Housing Fannie Mae Overview 54
Slide 56: Investor Size Requirements and 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-confirming 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 is 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: Sales Comparison
#39 39. Sales Comparison Manufactured Housing Fannie Mae Overview 64
Slide 66: 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 67: 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 68: Size of the Comparable
Size of the Comparable Size and bedroom count are two of the biggest drivers to value. – For manufactured homes at least two closed sales must be manufactured homes. They can be dated or from a competing neighborhood but must be manufactured homes. Manufactured Housing Fannie Mae Overview 67
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…
#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 – You see metal skirting around the foundation of collateral – Non-pitched roof, no house #, wood steps to the front door, possible alterations to the vinyl siding (such
Slide 74: Manufactured Home Reminders
Manufactured Home Reminders Common Concerns – Fannie Mae and Freddie Mac require the home to be 12 feet wide with a total of 600 square feet – Any structural modification to an existing manufactured home may render it unacceptable to FHA and Agency guidelines. Please see specific investor requiremen
Slide 75: Property Type Requirements – A Recap
Property Type Requirements – A Recap Manufactured Housing Fannie Mae Overview 74
Slide 76: Fannie Mae Resources
Fannie Mae Resources Website, Product Matrix Manufactured Housing Fannie Mae Overview 75
Slide 77: Fannie Mae Website
Fannie Mae Website Manufactured Housing Fannie Mae Overview 76
Slide 78: Manufactured Home Matrix
Manufactured Home Matrix Manufactured Housing Fannie Mae Overview 77
Slide 79: Manufactured Housing Fannie Mae Overview
Manufactured Housing Fannie Mae Overview 78
Slide 80: SEL 2013-05
SEL 2013-05 Manufactured Housing Fannie Mae Overview 79
Slide 81: Genworth Rate Express
Genworth Rate Express® Manufactured Housing Fannie Mae Overview 80
Slide 82: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Manufactured Housing Fannie Mae Overview 81
Slide 83: LOS Connections
LOS Connections Manufactured Housing Fannie Mae Overview 82
Slide 84: Training Tools and Information
Training Tools and Information Manufactured Housing Fannie Mae Overview 83
Slide 85: Training Tools and Information
Training Tools and Information Manufactured Housing Fannie Mae Overview 84
Slide 86: Additional MI Site Information
Additional MI Site Information Manufactured Housing Fannie Mae Overview 85
Slide 87: Your Genworth Resources
Your Genworth Resources ➢ ActionCenter®: 800 444.5664 ➢ Your Local Genworth Regional Underwriter ➢ Your Genworth Sales Representative Manufactured Housing Fannie Mae Overview 86
Slide 88: 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