Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (November 2019)
40 slides from Enact's investor presentation, November 2019
Slide 1: Freddie Mac's Enhanced Relief Refinance Mortgage
Freddie Mac’s Enhanced Relief RefinanceSM Mortgage November 2019 ©2019 Genworth Financial, Inc. All rights reserved.
Slide 2: Enhanced Relief Refinance Mortgage
Enhanced Relief Refinance Mortgage The Freddie Mac high loan-to-value (LTV) refinance option is available for refinance applications received on or after Nov. 1, 2018. It replaces Relief RefinanceSM, which was retired in accordance with the Home Affordable Refinance Program® (HARP®) as of Dec. 31, 2
Slide 3: Enhanced Relief Refinance Mortgage
Enhanced Relief Refinance Mortgage http://www.freddiemac.com/singlefamily/enhanced_relief_refi.html Enhanced Relief Refinance 2
Slide 4: Program Overview
Program Overview Freddie Mac Bulletin, Program Eligibility Parameters Enhanced Relief Refinance 3
Slide 5: Enhanced Relief Refinance Mortgage
Enhanced Relief Refinance Mortgage Assist Borrowers Who are Current on Mortgage Payments – Refinance options – Improve financial situation – Helps in situations where: • Home values declined Enhanced Relief Refinance 4
Slide 6: Enhanced Relief Refinance Mortgage
5 Enhanced Relief Refinance Mortgage https://sf.freddiemac.com/content/_assets/resources/pdf/fact-sheet/enhanced_relief_refinance.pdf Enhanced Relief Refinance
Slide 7: Enhanced Relief Refinance Mortgage
6 Enhanced Relief Refinance Mortgage http://www.freddiemac.com/singlefamily/enhanced_relief_refi_faq.html Enhanced Relief Refinance
Slide 8: Present Mortgage
Present Mortgage Eligibility Parameters: Existing Mortgage Being Refinanced Enhanced Relief Refinance 7
Slide 9: Mortgage Eligibility Requirements
Mortgage Eligibility Requirements Eligible Application and Settlement Dates The high LTV refinance option provides refinance opportunities to borrowers with existing Freddie Mac mortgages who are making their mortgage payments on time, but whose LTV ratio for a new mortgage exceeds the maximum allow
Slide 10: Borrower Benefit
Borrower Benefit Borrowers must benefit from the refinance in at least one of the following ways: – A reduction in the interest rate of the First Lien Mortgage – To replace an adjustable-rate mortgage (ARM) with a fixed-rate mortgage – A reduction in the monthly principal and interest payment of the
Slide 11: Mortgage Eligibility Requirements
Mortgage Eligibility Requirements Present Mortgage Parameters – First lien – Conventional mortgage – Currently owned or securitized by Freddie Mac – Not be a Freddie Mac Relief Refinance Mortgage – Note date on or before October 1, 2017 Eligible Sellers – Any Freddie Mac approved Seller/Servicer – T
Slide 12: Mortgage Eligibility Requirements
Mortgage Eligibility Requirements Underwriting Requirements – Must be underwritten through Loan Product Advisor or a manual underwriting process – See Mortgage Payment History (next slide) – *Seller is not required to verify a borrower’s income and assets – *There is no minimum Indicator Score requi
Slide 13: Mortgage Payment History
Mortgage Payment History The lender must validate that the existing mortgage payment history meets the requirements for the Enhanced Relief Refinance: – The mortgage has not been 30-days delinquent in the most recent six months; and – Has not been 30-days delinquent more than once in the most recent
Slide 14: Mortgage Eligibility Requirements
Mortgage Eligibility Requirements Obligated Borrower(s) The borrower(s) obligated on the Note on the Enhanced Relief Refinance Mortgage must be the same as the borrower(s) obligated on the Note on the Mortgage being refinanced, except that a borrower obligated on the Note of the Mortgage being refin
Slide 15: Mortgage Eligibility Requirements
Mortgage Eligibility Requirements Determining if Freddie Mac Owns Present Mortgage – https://ww3.freddiemac.com/loanlookup/ Enhanced Relief Refinance 14
Slide 16: New Mortgage (Refinance)
New Mortgage (Refinance) Parameters and Requirements Enhanced Relief Refinance 15
Slide 17: New Mortgage Requirements
New Mortgage Requirements The Enhanced Relief Refinance Mortgage must be originated for one of the following purposes: – A reduction in the interest rate of the First Lien Mortgage – To replace an ARM with a fixed-rate mortgage – A reduction in the amortization term of the First Lien Mortgage – A re
Slide 18: New Mortgage Requirements
New Mortgage Requirements The Enhanced Relief Refinance Mortgage must be: – A conventional 15-, 20-, or 30-year fixed-rate Mortgage – A conventional 5/5, 5/1, 7/1 or 10/1 ARM, provided that the Mortgage being refinanced is an ARM, except that a Mortgage secured by a Manufactured Home must not be a 5
Slide 19: New Mortgage Requirements
New Mortgage Requirements • Occupancy – 1-4 Unit Primary Residences – 1-Unit Second Home – 1-4 Unit Investment Properties The Mortgaged Premises must be an attached or detached dwelling, a Manufactured Home, a unit in a Condominium Project or Planned Unit Development, or, if the Seller is permitted
Slide 20: New Mortgage Requirements
New Mortgage Requirements • Property Types – Single Family • Attached • Detached – Manufactured Home • Cannot be in a condominium or PUD project – Condominium or PUD Project Unit • Seller is not required to represent and warrant that the unit meets project eligibility requirements • Seller must warr
Slide 21: New Mortgage Requirements
New Mortgage Requirements For all LTVs, proceeds can only be a used to: – Pay off the first mortgage • Unpaid principal and interest accrued through the payoff date ONLY – Pay related: • Closing costs • Financing costs • Prepaids/escrows – Related Payment Limit • $5000 – Cash to borrower cannot exce
Slide 22: New Mortgage Requirements
New Mortgage Requirements Refinance proceeds cannot pay a off second (junior) liens Must be subordinate to the Enhanced Relief Refinance Mortgage and must meet requirements for secondary financing set forth in Chapter 4204. An increase in the current unpaid principal amount of any junior lien is pro
Slide 23: Underwriting
Underwriting Guidelines and Mortgage Insurance Information Enhanced Relief Refinance 22
Slide 24: Underwriting Requirements
Underwriting Requirements Maximum LTV/TLTV/HTLTV Enhanced Relief Refinance 23
Slide 25: Underwriting Requirements
Underwriting Requirements The Enhanced Relief Refinance Mortgage must be: – Submitted to Loan Product Advisor® in accordance with the requirements of Chapter 5101, or – Manually underwritten in accordance with the requirements of this chapter See Section 4304.5 for additional requirements for Mortga
Slide 26: Underwriting Requirements
Underwriting Requirements Monthly Debt Payment to Income Ratio – Loan Product Advisor calculates and assesses the borrower’s qualifying ratios and there is no maximum DTI unless - • The P&I payment for the Enhanced Relief Refinance Mortgage will increase by more than 20 percent, • The Enhanced Relie
Slide 27: Underwriting Requirements
Underwriting Requirements Minimum Credit Score – There is no minimum indicator score unless - • The P&I payment for the Enhanced Relief Refinance Mortgage will increase by more than 20 percent, • The Enhanced Relief Refinance Mortgage is a Higher-Priced Covered Transaction (HPCT) or Higher-Priced Mo
Slide 28: Underwriting Requirements
Underwriting Requirements Income and Asset Documentation Level returned by Loan Product Advisor may be followed unless ‒ The P&I payment for the Enhanced Relief Refinance Mortgage will increase by more than 20 percent, ‒ The Enhanced Relief Refinance Mortgage is a Higher-Priced Covered Transaction (
Slide 29: Underwriting Requirements
Underwriting Requirements Determining Value Options – You may obtain a new appraisal report (interior and exterior) property inspection is required – Home Value Explorer® (HVE®) may be used see Section 4304.7 for details Enhanced Relief Refinance 28
Slide 30: Underwriting Requirements
Underwriting Requirements Mortgage Insurance The following provisions apply to an Enhanced Relief Refinance Mortgage that has a loan-to-value (LTV) ratio greater than 80%: – If the Mortgage being refinanced has mortgage insurance coverage, then the same percentage of mortgage insurance coverage must
Slide 31: Definitions
Definitions HIGHER-PRICED COVERED TRANSACTION (HPCT) A first-lien Mortgage secured by a Primary Residence, a second home or Investment Property not exempt from ability-to-repay requirements under the Truth-in-Lending Act and its implementing regulations that has an annual percentage rate (APR) of 1.
Slide 32: Definitions
Definitions Hardest Hit Fund program Hardest Hit Fund (HHF) program funds provided by a state Housing Finance Agency ("HFA") may be used to pay down the outstanding balance on a Mortgage being refinanced at the time of closing, and to pay Closing Costs for the Enhanced Relief Refinance® Mortgage, as
Slide 33: Genworth Rate Express
Genworth Rate Express® mi.genworth.com Enhanced Relief Refinance 32
Slide 34: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines mi.genworth.com Enhanced Relief Refinance 33
Slide 35: LOS Connections
LOS Connections mi.genworth.com Enhanced Relief Refinance 34
Slide 36: Training Tools and Information
Training Tools and Information mi.genworth.com Enhanced Relief Refinance 35
Slide 37: Training Tools and Information
Training Tools and Information mi.genworth.com Enhanced Relief Refinance 36
Slide 38: Additional MI Site Information
Additional MI Site Information mi.genworth.com Enhanced Relief Refinance 37
Slide 39: Your Genworth Resources
Your Genworth Resources ➢ ActionCenter®: 800 444.5664 ➢ Your Local Genworth Regional Underwriter ➢ Your Genworth Sales Representative Enhanced Relief Refinance 38
Slide 40: 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
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