Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (December 2019)
41 slides from Enact's investor presentation, December 2019
Slide 1: Calculating Base Income
Calculating Base Income December 2019 ©2019 Genworth Financial, Inc. All rights reserved.
Slide 2: Agenda
Agenda What we will cover – ATR – The Mortgage Application 1003 – Verifying Employment History – Verifying Employment Income • Verification of Employment (1005) • Paystubs • W2’s • Verbal Verification of Employment (VVOE) • 4506T – Fannie Mae & Freddie Mac References – Genworth Website – Helpful too
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 Review and Calculate Base Income 3
Slide 5: URLA Page
URLA Page http://www.freddiemac.com/singlefamily/sell/ulad.html Review and Calculate Base Income 4
Slide 6: URLA Page
URLA Page https://www.fanniemae.com/singlefamily/uniform-residential-loan-application Review and Calculate Base Income 5
Slide 7: Uniform Residential Loan Application link
https://www.fanniemae.com/singlefamily/uniform-residential-loan-application Review and Calculate Base Income 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. Review and Calculate Base Income
Slide 10: Verifying Non-Employment Income
Verifying Non-Employment Income *New * Review and Calculate Base Income
Slide 11: Verifying Previous Employment History
Verifying Previous Employment History *New Review and Calculate Base Income
Slide 12: Verifying Employment Income
Verifying Employment Income What Not to Ask- “How Much Do You Make?” About $50,000 $39,850!! Review and Calculate Base Income 11
Slide 13: Verifying Employment Income
Verifying Employment Income The Interview- Let’s talk about how you get paid… Do you Receive an Annual Salary? Are you Paid by the Hour? • If yes, what is your hourly rate? • How many hours do you work per week? – Are your hours scheduled or per diem? – Do the amount of hours vary week-to-week? – Do
Slide 14: Income Calculation
Income Calculation Annual Salary/ 12 months Weekly- Every Week Weekly Base x 52 / 12 months Bi-Weekly- Every Two Weeks Bi-Weekly Base x 26/ 12 months Bi-Monthly- Twice a Month Bi-Monthly Base x 2 Hourly- Per Hours Worked Hourly Rate x # of Hours Per Week x 52/ 12 months Pier Diem, Commissions, OT… A
Slide 15: Monthly Income
Monthly Income Self Employed income (25% or more ownership of business) would be entered as Base Income but the indicator must be checked in the employment section. Review and Calculate Base Income 14
Slide 16: Verifying the Qualifying Income
Verifying the Qualifying Income A minimum history of two years of employment is recommended. However, in certain circumstances income that has been received for a shorter period of time may be acceptable. Each file is reviewed individually. Base Pay (Salary and Hourly) Obtain the following documents
Slide 17: Verification of Employment-1005
Verification of Employment-1005 Plant scheduled for shut down June 2019 Review and Calculate Base Income 16
Slide 18: Written Verification of Employment-1005
Written Verification of Employment-1005 VOE Reminders: – Independently verify address to which you are sending – Do not put “Attention to” on the form – Forms should be signed, dated with signature and printed name of employer – If faxed, note the origin of the faxed document-Is it coming from the e
Slide 19: VOE -1005
VOE -1005 All of the information on Form 1005 must be legible. • The following fields are optional; • #11- Probability • #14- OT & Bonus • #16- Date of next pay increase • #17- Projected amount of next pay increase • #18- Date of last pay increase • #19 Amount of last pay increase • #24- Part III- P
Slide 20: Examining Pay Stubs
Examining Pay Stubs Reminders: – The borrower’s name and SSN# must be consistent with the application (Spelling, middle initial or a JR or III). – Computer generated, if not the most recent tax return is required and/or a written voe – If paid hourly, the number of hours must be noted on the paystub
Slide 21: Examining W-2s
Examining W-2s Review and Calculate Base Income 20
Slide 22: Examining W-2s
Examining W-2s W-2 Reminders: – Name and SSN# match application and also the pay stub – Applicant’s address should also match the 1003 and bank statement mailing address – Should be the most recent one or two (if required) – Is the ytd income consistent with monthly income, if not obtain explanation
Slide 23: Verbal VOE (VVOE)
Verbal VOE (VVOE) http://freddiemac.com/learn Review and Calculate Base Income 22
Slide 24: Verbal VOE (VVOE)
Verbal VOE (VVOE) • The Lender must independently obtain a phone number and, if possible, the employer’s address. Sources include: • Telephone Book • The Internet • Directory Assistance • The Applicable Licensing Bureau • The Lender must contact the employer & confirm the borrower’s current employme
Slide 25: Form 4506-T
Form 4506-T There is a new transcript format that better protects taxpayer data. This new format partially masks personally identifiable information. Financial data will remain fully visible to allow for tax preparation, tax representation or income verification. Because the full SSN is masked, the
Slide 26: 2018 Tax Format
2018 Tax Format Review and Calculate Base Income 25
Slide 27: Fannie Mae Guidelines 4506-T
Fannie Mae Guidelines 4506-T https://www.fanniemae.com/content/announcement/sel1906.pdf 4506 Transcript Review 26
Slide 28: Freddie Mac Guidelines 4506-T
Freddie Mac Guidelines 4506-T https://guide.freddiemac.com/app/guide/content/a_id/1000650 4506 Transcript Review 27
Slide 29: Fannie Mae Selling Guide
Fannie Mae Selling Guide https://www.fanniemae.com/content/guide/selling/b3/3.1/01.html Review and Calculate Base Income 28
Slide 30: Fannie Mae Selling Guide
Fannie Mae Selling Guide https://www.fanniemae.com/content/guide/selling/b3/3.1/03.html Review and Calculate Base Income 29
Slide 31: Freddie Mac Selling Guide
Freddie Mac Selling Guide https://guide.freddiemac.com/app/guide/topic/5300 Review and Calculate Base Income 30
Slide 32: Freddie Mac Selling Guide
Freddie Mac Selling Guide https://guide.freddiemac.com/app/guide/content/a_id/1000652 Review and Calculate Base Income 31
Slide 33: Freddie Mac's LPA Documentation Matrix
Freddie Mac’s LPA Documentation Matrix https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf Review and Calculate Base Income 32
Slide 34: Genworth Rate Express
Genworth Rate Express® mi.genworth.com Presentation Title Insert Legal Copy 33
Slide 35: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines mi.genworth.com Presentation Title Insert Legal Copy 34
Slide 36: LOS Connections
LOS Connections mi.genworth.com Presentation Title Insert Legal Copy 35
Slide 37: Training Tools and Information
Training Tools and Information mi.genworth.com Presentation Title Insert Legal Copy 36
Slide 38: Training Tools and Information
Training Tools and Information mi.genworth.com Presentation Title Insert Legal Copy 37
Slide 39: Additional MI Site Information
Additional MI Site Information mi.genworth.com Presentation Title Insert Legal Copy 38
Slide 40: Your Genworth Resources
Your Genworth Resources ActionCenter®: 800 444.5664 Your Local Genworth Regional Underwriter Your Genworth Sales Representative Presentation Title Insert Legal Copy 39
Slide 41: 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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