Enact Holdings, Inc. · NASDAQ:ACT
Enact — Genworth Mortgage Insurance — Investor Presentation (July 2020)
35 slides from Enact's investor presentation, July 2020
Slide 1: How to Use the Business Income And Stability Worksheet
COVID-19 Updates: How to Use the Business Income And Stability Worksheet July 2020 Customer Education Brought to you by: Genworth Customer Development and Process Consulting ©2020 Genworth Financial, Inc. All rights reserved. 0
Slide 2: Objective
Objective Learn to use the Genworth Business Income & Stability Calculator and P & L Calculators to assist in complying with recent Fannie Mae and Freddie Mac self-employed borrower policies – First be sure you have taken the Genworth webinar COVID-19 Updates for Self- Employed Borrowers and are fam
Slide 3: Fannie Mae COVID-19 Updates
Fannie Mae COVID-19 Updates Fannie Mae LL-2020-03 & FAQs. https://singlefamily.fanniemae.com/media/22316/display https://singlefamily.fanniemae.com/media/22326/display How to Use the Business Stability and Income Worksheet 2
Slide 4: Fannie Mae LL-2020-03 Effective June 11, 2020
Fannie Mae LL-2020-03 Effective June 11, 2020 And Remains Effective Until Further Notice Due to the pandemic’s continuing impact on businesses throughout the country, lenders are now required to obtain the following additional documentation to support the decision that the self-employed income meets
Slide 5: Fannie Mae LL-2020-03 Effective June 11, 2020
Fannie Mae LL-2020-03 Effective June 11, 2020 And Remains Effective Until Further Notice Lenders must review the profit and loss statement, and business depository accounts, if required, and other relevant factors to determine the extent to which a business has been impacted by COVID-19. The lender
Slide 6: Freddie Mac COVID-19 Resources
Freddie Mac COVID-19 Resources https://sf.freddiemac.com/about/covid-19 https://sf.freddiemac.com/content/_assets/resources/pdf/faq/covi d-19-selling-related-frequently-asked-questions.pdf How to Use the Business Stability and Income Worksheet 5
Slide 7: Freddie Mac Bulletin 2020-19
Freddie Mac Bulletin 2020-19 Updates to COVID-19 impact on originations: ▪ Temporary requirements and guidance for self-employed income https://sf.freddiemac.com/articles/news/guide-bulletin-2020-19-new-temporary-requirements-for-self- employed-income-choicerenovation-mortgages-and-more How to Use t
Slide 8: Freddie Mac Bulletin 2020-19
Freddie Mac Bulletin 2020-19 These temporary requirements are effective for Mortgages with Application Received on and after June 11, 2020 and until further notice. It is encouraged to implement these requirements to loans in process. Due to the pandemic’s continuing impact on businesses throughout
Slide 9: Freddie Mac Bulletin 2020-19
Freddie Mac Bulletin 2020-19 These temporary requirements are effective for Mortgages with Application Received on and after June 11, 2020 and until further notice. It is encouraged to implement these requirements to loans in process. Reviewing YTD P&L statements, business account statements and oth
Slide 10: Business Stability And Income Worksheet
Business Stability And Income Worksheet Continued on next slide How to Use the Business Stability and Income Worksheet 9
Slide 11: Business Stability And Income Worksheet
Business Stability And Income Worksheet How to Use the Business Stability and Income Worksheet 10
Slide 12: The Process
The Process Analyze the tax Returns as you normally would using the Fannie Mae Cash Flow 1084, Freddie Mac Form 91, SAM or other similar worksheet – Follow guidelines for review of one or two years most recent business returns – When two years are analyzed, total the two years and divide by 2 – Note
Slide 13: $49,250 Average Business Income and $95,000 Average SEB W-2 Wages
$49,250 Average Business Income and $95,000 Average SEB W-2 Wages Will Be Entered Onto The Worksheet How to Use the Business Stability and Income Worksheet 12
Slide 14: The Process
The Process Complete the loan information including tax form reviewed – Note there is a dropdown box to select the type of tax form review How to Use the Business Stability and Income Worksheet 13
Slide 15: The Process
The Process Complete the tax return analysis done using the drop down How to Use the Business Stability and Income Worksheet 14
Slide 16: The Process
The Process Enter the numbers you calculated onto the calculator as indicated – The calculator will then determine the Historical Business Income Used to Qualify field We need to go to the P & L Calculator How to Use the Business Stability and Income Worksheet 15
Slide 17: The Process
The Process Review the P & L – To complete the 2020 YTD P& L field ,adjustments to Net Income from the P & L may be necessary; Use the Genworth P & L tool to assist in determining the Total net Business Income from the P & L How to Use the Business Stability and Income Worksheet 16
Slide 18: The Process
The Process Use the P & L Calculator to Adjust the Income From the P & L – Click on tab for type of business you are reviewing How to Use the Business Stability and Income Worksheet 17
Slide 19: The Process
The Process Adjust the P & L Net Income as allowed by your investor; Typical adjustments are for depreciation, depletion and non-recurring income – Start with Net Income from the P &L How to Use the Business Stability and Income Worksheet 18
Slide 20: The Process
The Process There was no depletion or amortization or non-recurring casualty loss so next subtract non- recurring items How to Use the Business Stability and Income Worksheet 19
Slide 21: The Process
The Process For a Partnership or S Corp be sure to adjust based on percent of ownership from the K-1 How to Use the Business Stability and Income Worksheet 20
Slide 22: The Process
The Process Total Net Business Income from P & L Calculator is Entered onto the Business Stability & Income Calculator How to Use the Business Stability and Income Worksheet 21
Slide 23: The Process
The Process If applicable, a current YTD pay stub or statement from the accountant would be required. – In this example assume YTD W-2 wages paid are $5000 as verified by YTD paystub or similar document – Enter number of months the P & L covers How to Use the Business Stability and Income Worksheet
Slide 24: The Process
The Process The calculator will compare the historical business income to qualify from the tax returns to the YTD P & L Net Earning and enters the lesser of the two below How to Use the Business Stability and Income Worksheet 23
Slide 25: The Process
The Process Answer questions about Business Operations and Business Stability – Additional documentation review and analysis may be required including a month to month P & L, balance sheet or updated Business Plan How to Use the Business Stability and Income Worksheet 24
Slide 26: The Process
The Process If business asset statements were provided, enter the details below for ease of comparison between the P & L and asset statements – Be sure to compare the P & L to the asset statements for support and consistency. – Note the reminder about excluding and PPP loans or similar type loans or
Slide 27: Genworth Mortgage Insurance Credit Policy Announcements
Genworth Mortgage Insurance Credit Policy Announcements Genworth aligns with the GSE recent communications https://new.mortgageinsurance.genworth.com/guidelines How to Use the Business Stability and Income Worksheet 26
Slide 28: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines How to Use the Business Stability and Income Worksheet 27
Slide 29: Genworth Rate Express
Genworth Rate Express® How to Use the Business Stability and Income Worksheet 28
Slide 30: LOS Connections
LOS Connections How to Use the Business Stability and Income Worksheet 29
Slide 31: Training Tools and Information
Training Tools and Information How to Use the Business Stability and Income Worksheet 30
Slide 32: Training Tools and Information
Training Tools and Information How to Use the Business Stability and Income Worksheet 31
Slide 33: Additional MI Site Information
Additional MI Site Information How to Use the Business Stability and Income Worksheet 32
Slide 34: Your Genworth Resources
Your Genworth Resources ➢ ActionCenter®: 800 444.5664 ➢ Your Local Genworth Regional Underwriter ➢ Your Genworth Sales Representative How to Use the Business Stability and Income Worksheet 33
Slide 35: 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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