Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (October 2018)
43 slides from Enact's investor presentation, October 2018
Slide 1: Freddie Mac's Enhanced Relief Refinance Mortgage
Freddie Mac’s Enhanced Relief RefinanceSM Mortgage October 2018 Genworth Mortgage Insurance Corporation ©2018 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 will be retired in accordance with the Home Affordable Refinance Program® (HARP®) end date
Slide 3: Enhanced Relief Refinance Mortgage
Enhanced Relief Refinance Mortgage http://www.freddiemac.com/singlefamily/enhanced_relief_refi.html Enhanced Relief Refinance 3
Slide 4: Program Overview
Program Overview Freddie Mac Bulletin, Program Eligibility Parameters Enhanced Relief Refinance 4
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 5
Slide 6: Enhanced Relief Refinance Mortgage
6 Enhanced Relief Refinance Mortgage http://www.freddiemac.com/singlefamily/enhanced_relief_refi.html Enhanced Relief Refinance
Slide 7: Bulletin 2017-17
7 Bulletin 2017-17 http://www.freddiemac.com/singlefamily/guide/bulletins/pdf/bll1717.pdf Enhanced Relief Refinance
Slide 8: Freddie Mac's Selling Guide
8 Freddie Mac’s Selling Guide Enhanced Relief Refinance
Slide 9: Enhanced Relief Refinance Mortgage
9 Enhanced Relief Refinance Mortgage http://www.freddiemac.com/singlefamily/factsheets/sell/pdf/enhanced_relief_refinance.pdf Enhanced Relief Refinance
Slide 10: Enhanced Relief Refinance Mortgage
10 Enhanced Relief Refinance Mortgage http://www.freddiemac.com/singlefamily/enhanced_relief_refi_faq.html Enhanced Relief Refinance
Slide 11: Present Mortgage
Present Mortgage Eligibility Parameters: Existing Mortgage Being Refinanced Enhanced Relief Refinance 11
Slide 12: 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 a
Slide 13: 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 14: 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
Slide 15: 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 r
Slide 16: 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 17: 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 bei
Slide 18: Mortgage Eligibility Requirements
Mortgage Eligibility Requirements Determining if Freddie Mac Owns Present Mortgage – https://ww3.freddiemac.com/loanlookup/ Enhanced Relief Refinance 18
Slide 19: New Mortgage (Refinance)
New Mortgage (Refinance) Parameters and Requirements Enhanced Relief Refinance 19
Slide 20: 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 –
Slide 21: 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
Slide 22: 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 permit
Slide 23: 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 24: 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 can
Slide 25: 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
Slide 26: Underwriting
Underwriting Guidelines and Mortgage Insurance Information Enhanced Relief Refinance 26
Slide 27: Underwriting Requirements
Underwriting Requirements Maximum LTV/TLTV/HTLTV Enhanced Relief Refinance 27
Slide 28: 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 Mo
Slide 29: 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 30: 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 31: 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 Transacti
Slide 32: 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 32
Slide 33: 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 cover
Slide 34: 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) o
Slide 35: 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 36: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Enhanced Relief Refinance 36
Slide 37: Genworth Rate Express
Genworth Rate Express® Enhanced Relief Refinance 37
Slide 38: LOS Connections
LOS Connections Enhanced Relief Refinance 38
Slide 39: Training Tools and Information
Training Tools and Information Enhanced Relief Refinance 39
Slide 40: Training Tools and Information
Training Tools and Information Enhanced Relief Refinance 40 40
Slide 41: Additional MI Site Information
41 Additional MI Site Information Enhanced Relief Refinance
Slide 42: Your Genworth Resources
Your Genworth Resources ActionCenter®: 800 444.5664 Your Local Genworth Regional Underwriter Your Genworth Sales Representative Enhanced Relief Refinance 42
Slide 43: 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 (October 2018) on 6ix