Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (February 2020)
115 slides from Enact's investor presentation, February 2020
Slide 1: Understanding Desktop Underwriter - Advanced Guidelines and Updates
Understanding Desktop Underwriter® - Advanced Guidelines and Updates February 2020 ©2020 Genworth Financial, Inc. All rights reserved.
Slide 2: Agenda
Agenda In Today’s Session – Fannie Mae Website – Understanding Recommendations – Understanding DU® Risk Analysis – Credit, Income and Asset and Appraisal Messages – Data Integrity Reminders and Fannie Mae Updates – Genworth Website Today’s Session Addresses Only Conventional Loans Understanding Desk
Slide 3: Fannie Mae Website - Single Family
Fannie Mae Website - Single Family https://www.fanniemae.com/singlefamily Understanding Desktop Underwriter Advanced
Slide 4: Selling and Servicing Guide, Forms and Communications
https://singlefamily.fanniemae.com/selling-and-servicing-guide-forms-and-communications Understanding Desktop Underwriter Advanced
Slide 5: Fannie Mae Communications
Fannie Mae Communications Announcements, Lender Letters, Release Notes… Understanding Desktop Underwriter Advanced 4
Slide 6: Selling Guide SEL 2020-01
Selling Guide SEL 2020-01 Highlights include: Rental housing payment clarification Rental income correction Delaying effective date for calculating the monthly real estate tax payment Miscellaneous updates including rep & warrants and a clarification regarding HomeReady and resale restrictio
Slide 7: Lender Letter LL-2020-01
Lender Letter LL-2020-01 Highlights include: Updated ARM Notes and Riders LIBOR ARMs will be retired by the end of 202 Anticipate delivery of SOFR ARMs to begin in second half of 2020 Future retirement of CMT (constant maturity Treasury securities) at some point in 2020 Understanding Desktop
Slide 8: Updated Timeline for URLA
Updated Timeline for URLA https://www.fanniemae.com/content/news/urla-announcement-december-2019.pdf Understanding Desktop Underwriter Advanced 7
Slide 9: URLA- Redesigned
URLA- Redesigned https://www.fanniemae.com/singlefamily/uniform-residential-loan-application Understanding Desktop Underwriter Advanced 8
Slide 10: Selling Guide SEL 2019-09
Selling Guide SEL 2019-09 Highlights include: Clarifying Lenders are required to use a reasonable estimate of real estate taxes based on the market value of the land and completed improvements for calculating monthly Real Estate Tax payment Non-Applicant Debt Clarification - With the December 20
Slide 11: Lender Letter LL-2019-09
Lender Letter LL-2019-09 This Lender Letter has information on the 2020 general and high-cost area loan limits. https://www.fanniemae.com/content/announcement/ll1909.pdf Understanding Desktop Underwriter Advanced 10
Slide 12: Lender Letter LL-2019-08
Lender Letter LL-2019-08 This Lender Letter communicates that Lenders they will be required to use the updated Master Policy and related Endorsements for all new loan applications taken on and after 3/1/2020 (with the exception of qualifying High LTV Refinances which are done as certificate modifica
Slide 13: DU Release Notes
DU Release Notes Release Notes: Highlights Construction-to-Permanent Financing for Manufactured Homes Homeownership Education Requirements Social Security Number Verification Message Account Number Display Updates to Align with the Selling Guide https://www.fanniemae.com/content/release_no
Slide 14: Eligibility Matrix- Updated
Eligibility Matrix- Updated https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf Understanding Desktop Underwriter Advanced 13
Slide 15: Day 1 Certainty
Day 1 Certainty TM Understanding Desktop Underwriter Advanced 14
Slide 16: DU Validation Service and Day 1 Certainty
DU Validation Service and Day 1 Certainty TM https://www.fanniemae.com/singlefamily/day-1-certainty https://www.duvalidationcenter.com/ Understanding Desktop Underwriter Advanced
Slide 17: DU Validation Service
DU Validation Service Optional Service via DU – Lenders Must Activate to use – Execute contract with vendor(s), then execute contract/agreements with Fannie Mae – Validation Options for Income, Assets and Employment verified by Third Party Data Vendor (i.e. The Work Number® from Equifax®) – Tax tran
Slide 18: DU Validation Service
DU Validation Service – Lenders obtain borrower consent then orders the “verification report(s)” – Lender reviews report for any discrepancies with borrower – Lender enters details into DU and submits – DU obtains a “duplicate” report from the vendor using loan number or reference number. (Lender lo
Slide 19: How It Works - Income Example
How It Works - Income Example Understanding Desktop Underwriter Advanced 18
Slide 20: The DU Findings Report
The DU Findings Report Always Read Through All Messages Understanding Desktop Underwriter Advanced 19
Slide 21: Analyzing Desktop Underwriter Findings Report
Analyzing Desktop Underwriter Findings Report SUMMARY OF FINDINGS: Contains “DU” Recommendation and Purchase Eligibility – DAY 1 CERTAINTY MESSAGES: Day 1 certainty or Enforcement relief on property value) – RISK AND ELIGIBILITY: Provides details on risk recommendation and why loan is NOT eligible f
Slide 22: Sample DU Findings Report
Sample DU Findings Report Verification Messages Broken out by Topic: – General messages •Potential Red Flag Messages •Document Expiration date •MI requirements – Credit and Liabilities •Bankruptcy, foreclosures, charge offs •Late pays, payoff of accounts, omitted liabilities – Employment and Income
Slide 23: Desktop Underwriter Potential Red Flag Messages - Updated
Desktop Underwriter Potential Red Flag Messages - Updated Messages Must Be Cleared – Provides message text – Why message appeared – Possible ways to clear or resolve https://www.fanniemae.com/content/tool/du-potential-red-flag-message-matrix.pdf Understanding Desktop Underwriter Advanced
Slide 24: Desktop Underwriter Potential Red Flag Messages - Updated
Desktop Underwriter Potential Red Flag Messages - Updated Messages Must Be Cleared – Provides message text – Why message appeared – Possible ways to clear or resolve https://www.fanniemae.com/content/tool/du-potential-red-flag-message-matrix.pdf Understanding Desktop Underwriter Advanced
Slide 25: General Messages
General Messages Best Practices Understanding Desktop Underwriter Advanced 24
Slide 26: General Messages
General Messages Clear Potential Erroneous Information – Confirm SS# Understanding Desktop Underwriter Advanced 25
Slide 27: General Messages
General Messages Watch the expiration date of your documents! It’s 4 months - not 120 days! Understanding Desktop Underwriter Advanced 26
Slide 28: General Messages
General Messages Check Pricing Reminder- If the loan can be submitted as a HomeReady loan - All LLPA waived for transactions with credit score of 680 or greater and LTV of 80% or greater. https://www.fanniemae.com/content/pricing/llpa-matrix.pdf Understanding Desktop Underwriter Advanced 27
Slide 29: General Messages
General Messages • Check for MI coverage • Check MI guidelines Reminder - If the loan can be submitted as a HomeReady loan or is an HFA loan, the MI coverage requirement is lower when the LTV is greater than 90%! Understanding Desktop Underwriter Advanced 28
Slide 30: Credit and Liabilities
Credit and Liabilities Best Practices Understanding Desktop Underwriter Advanced 29
Slide 31: Credit and Liabilities
Credit and Liabilities • Check for overlay of minimum credit score • Check for overlay of minimum number of credit scores • Check for overlay of minimum number of tradelines used in credit score Understanding Desktop Underwriter Advanced 30
Slide 32: Credit and Liabilities
Credit and Liabilities DU Credit-related Error Codes Job Aid https://www.fanniemae.com/content/job_aid/desktop-underwriter-credit-related-error-codes-job-aids.pdf Understanding Desktop Underwriter Advanced 31
Slide 33: Credit and Liabilities
Credit and Liabilities Borrowers with Credit Freeze – DU will underwrite if only one repository is frozen • A warning message will be issued by DU reminding lenders of their responsibility – If two repositories are frozen DU will issue an error message – If no credit score is generated by the two re
Slide 34: Credit and Liabilities
Credit and Liabilities If consumers ask for a freeze online or by phone, the credit reporting agency must have the freeze in place within one business day. And when consumers want to lift the freeze, the credit reporting agencies have to make that happen within one hour. (If consumers make the r
Slide 35: Credit and Liabilities
Credit and Liabilities Verification Messages Broken out by Topic: –Credit and Liabilities •Bankruptcy, foreclosures, charge offs, late pays, omitted accounts •What accounts were indicated as “to be paid off” •Mortgage payment that need additional attention This message is NOT on your sample findings
Slide 36: Credit and Liabilities
Credit and Liabilities B3-5.3-07, Significant Derogatory Credit Events — Waiting Periods and Re-establishing Credit (07/29/2014) Not ALL Lenders Allow For Extenuating Circumstances Understanding Desktop Underwriter Advanced 35
Slide 37: Credit and Liabilities
Credit and Liabilities Bankruptcy And Mortgage Delinquency – With 10.2 lenders will have the ability to instruct DU to disregard bankruptcy information in the eligibility assessment that is incorrect or due to extenuating circumstances, or disregard excessive mortgage delinquency information that is
Slide 38: Credit and Liabilities
Credit and Liabilities DU Sample Data Entry – Check your specific policy if you are able to override DU with these options Understanding Desktop Underwriter Advanced 37
Slide 39: Credit and Liabilities
Credit and Liabilities – When DU issues “Approve/Eligible” using the disputed trade lines: • Include the payment, if any, in the DTI but no further documentation is required. – When loan casefile does not receive Approve recommendation including the disputed trade line, risk will be assessed EXCLUDI
Slide 40: Credit and Liabilities
Credit and Liabilities Authorized User Accounts DU considers authorized user accounts in it’s credit risk assessment. FICO scores may be impacted but DU’s risk engine looks at the trade lines and makes a credit recommendation. – Lenders should underwrite without the benefit of these trade lines unle
Slide 41: Credit and Liabilities
Credit and Liabilities Accounts Paid off at Closing – Funds must be verified to pay off the account (if indicated in DU loan to be paid, DU will add amount to be verified); Underwriters will use discretion and MAY include a payment even if the account is being paid off. The account may remain open a
Slide 42: Credit and Liabilities
Credit and Liabilities For loan casefiles underwritten through DU – DU determines the maximum allowable debt-to income ratio based on the overall risk assessment of the loan casefile – DU will apply a maximum allowable DTI ratio of 50% Understanding Desktop Underwriter Advanced 41
Slide 43: Credit and Liabilities
Credit and Liabilities The total monthly obligation is the sum of the following: – Monthly housing expense (PITI) – Monthly payments on installment debts and other mortgage debts that extend beyond ten months (including deferred installment loans); – Monthly payments on revolving debts (unless evide
Slide 44: Credit and Liabilities...cont
Credit and Liabilities...cont The total monthly obligation….cont – 30 Day charge accounts - monthly balance will not be calculated in the DTI but included as reserves in the “required funds to be verified” – Do not Omit or mark paid by close • Verify MOP is “O” on credit report and mapped correctly
Slide 45: Credit and Liabilities...cont
Credit and Liabilities...cont Student Loans – Is it Deferred or in Repayment? – Student Loans in repayment: • Use the actual payment documented from credit report; If no payment listed – Use verified loan terms from student loan lender – Documentation supplied by the borrower or – 1% of the outstand
Slide 46: Credit and Liabilities...cont
Credit and Liabilities...cont The total monthly obligation is the sum of the following: – Monthly alimony, child support, or maintenance payments that extend beyond ten months SEL 2017-06 allows option to reduce income by the monthly Alimony obligation in lieu of a liability – Business debt in the b
Slide 47: Credit and Liabilities...cont
Credit and Liabilities...cont The total monthly obligation is the sum of the following: SEL 2018-01 allows option to include a payment in the DTI if certain requirements are met – Selling Guide requirements are: Understanding Desktop Underwriter Advanced 46
Slide 48: Credit and Liabilities...cont
Credit and Liabilities...cont The total monthly obligation is the sum of the following: SEL 2018-09 requires SBA loans secured by the subject to be treated as a subordinated lien : Understanding Desktop Underwriter Advanced 47
Slide 49: Employment and Income
Employment and Income Best Practices Understanding Desktop Underwriter Advanced 48
Slide 50: Documenting Employment and Income
Documenting Employment and Income Break Out Income Type For Proper AUS Results Understanding Desktop Underwriter Advanced 49
Slide 51: Employment and Income
Employment and Income Paystub Reminders: – The borrower’s name and SSN# must be consistent with the application (spelling, middle initial or a JR or III) – Computer generated? – If paid hourly, the number of hours must be noted on the paystub – Dated within 30 days of application; if stale dated, as
Slide 52: Employment and Income
Employment and Income Verbal Verifications – Verbal verifications of employment for employed borrowers are required to be completed within 10 business days of closing or, if lenders choose, a VVOE can be completed prior to loan delivery – Verbal verifications of employment for self employed borr
Slide 53: Employment and Income
Employment and Income The IRS Form 4506-T – IRS document used to retrieve past federal tax return transcripts, 1065, 1120S, 1120, or W-2 and 1099 transcripts that are on file with the IRS. – Gives permission for a third party to retrieve the tax payer’s data. – The form is valid for 120 days once si
Slide 54: Employment and Income
Employment and Income Commission income effective immediately with 2018-09 – All commission income will be treated the same, individual tax returns or tax transcripts will no longer be required – Or a written verification of employment (Written VOE 1005) can be used in place of either of the above d
Slide 55: Employment and Income
Employment and Income Automobile allowance Policy – The full amount of an automobile allowance may now be included as income and the lease or financing expenditure must be included as a debt in the calculation of the debt-to-income (DTI) ratio. NOTE: A history of receipt of this income continues
Slide 56: Employment and Income
Employment and Income Self Employment Understanding Desktop Underwriter Advanced 55
Slide 57: Employment and Income
Employment and Income • Use of LoanBeam for income 1084 workbook – Fannie Mae has approved the use of this tool and if lender uses it to calculate income and enter the monthly income amount in DU, Fannie Mae will provide representation and warranty enforcement relief* on the accuracy of the calculat
Slide 58: Employment and Income
Employment and Income • Use of LoanBeam for income 1084 workbook – Lenders may receive enforcement relief when using a Fannie Mae-approved tool immediately. – The list of Approved Vendor Tools is available on Fannie Mae’s website Understanding Desktop Underwriter Advanced 57
Slide 59: Income and Employment
Income and Employment • General Underwriting Requirements – Lenders must review the “type” of income earned and entered in DU; income used for qualifying must be reasonably stable and likely to continue at the current levels. RED FLAG: Declining income – Bonus and Overtime must be annualized or not
Slide 60: Assets
Assets Best Practices Understanding Desktop Underwriter Advanced 59
Slide 61: Assets
Assets Do not enter gift funds in Section 2. Gifts are entered in Section 4. Understanding Desktop Underwriter Advanced
Slide 62: Assets
Assets Other Assets - These asset types are the less common – Verify acceptability of the assets type and check to see if any program restrictions apply Understanding Desktop Underwriter Advanced 61
Slide 63: Assets
Assets Observation Section Lists Total Assets Entered By Type; Underwriting Analysis Report Lists Total Funds Required, Including Any Reserves Assets Entered By Type Total Funds Required Additional Reserves May Need To Be Verified If Paying Down Accounts, Paying Off Collections Or Judgments Or Tax L
Slide 64: Minimum Borrower Contribution
Minimum Borrower Contribution 1. If the borrower receives a gift from a relative or domestic partner who has lived with the borrower for the last 12 months, or from a fiancé or fiancée, the gift is considered the borrower’s own funds and may be used to satisfy the minimum borrower contribution requi
Slide 65: Assets
Assets Standard Depository Messages: – Number of months documentation – Refers lenders to Selling Guide for large deposits (we will discuss on a future slide) Understanding Desktop Underwriter Advanced 64
Slide 66: Assets
Assets Indications of Borrowed Funds… – Fannie Mae and Freddie Mac have the same definition of a “large deposit” – A large deposit and any deposit that is 50% or more of the total qualifying income being used to qualify – If using the funds, lenders must obtain borrower’s written explanation and doc
Slide 67: Assets - The Use of Gift Funds
Assets - The Use of Gift Funds – A borrower of a mortgage loan secured by a principal residence or second home may use funds received as a personal gift from an acceptable donor. – Gift funds may fund all or part of the down payment, closing costs, or financial reserves, subject to the minimum borro
Slide 68: Assets - Gift Funds - Documentation
Assets - Gift Funds - Documentation Gifts must be evidenced by a letter signed by the donor, called a gift letter. The gift letter must: – specify the dollar amount of the gift; – specify the date the funds were transferred; – include the donor’s statement that no repayment is expected; and – indica
Slide 69: Assets - Gift Funds
Assets - Gift Funds The lender must verify that sufficient funds to cover the gift are either in the donor’s account or have been transferred to the borrower’s account. Acceptable documentation includes the following: – a copy of the donor’s check and the borrower’s deposit slip, – a copy of the don
Slide 70: Assets
Assets Mutual Funds and Other Non-liquid Account Types: – Proof of liquidation Proof Of Liquidation – When used for the down payment or closing costs, if the value of the asset is at least 20% more than the amount of funds needed for the down payment and closing costs, no documentation of th
Slide 71: Assets
Assets Stocks or Bond Account Messages: – Non-vested stock options and non-vested restricted stock are not acceptable sources of funds for the transaction Understanding Desktop Underwriter Advanced 70
Slide 72: Assets
Assets Retirement accounts (401k or IRA) – Accounts that allow for withdrawals only in connection with the borrower’s employment termination, retirement, or death, or the account does not allow for any type of withdrawal should not be entered Look For Indications That the Account is an IRA or Retire
Slide 73: IPC Updates in DU
IPC Updates in DU Updates – Sales Concessions Field or IPC is being removed from DU and lenders must make the adjustment to the purchase price manually or the purchase contract must be amended to restrict maximum IPC paid Understanding Desktop Underwriter Advanced 72
Slide 74: Assets
Assets DU uses the number of financed properties to apply the following eligibility guidelines for casefiles when the borrower has multiple financed properties and the subject property is an investment or second home.: – A minimum credit score of 720 is required for borrowers with 7-10 financed prop
Slide 75: Assets
Assets For borrowers with multiple financed properties. The policy requires fewer eligibility overlays and updated reserve requirements, which are automated by DU. – A new field “Number of Financed Properties” added to additional data screen. It captures the number of 1-4 unit financed properties th
Slide 76: Assets
Assets DU determines the reserves required for the other residential financed properties (excluding the borrower’s principal residence and the subject property). The reserve amount is determined by applying a specific percentage to the aggregate of the outstanding unpaid principal balance (UPB) for
Slide 77: Property and Appraisal Information
Property and Appraisal Information Understanding Desktop Underwriter Advanced
Slide 78: Property and Appraisal Information
Property and Appraisal Information A Full Appraisal Is Always Required, Regardless Of The DU Appraisal Option, When The Last Sale Was An REO Or Foreclosure Sale Understanding Desktop Underwriter Advanced 77
Slide 79: Property and Appraisal - FAQs
Property and Appraisal - FAQs Appraisal Waivers Appraisal and Property-Related https://singlefamily.fanniemae.com/media/9456/display https://singlefamily.fanniemae.com/media/6776/display Understanding Desktop Underwriter Advanced 78
Slide 80: Property and Appraisal Information
Property and Appraisal Information DU 10.3 Updates Appraisal Waivers Effective December 8, Rural High-Needs Appraisal Waiver Available Note: Genworth does not insure loans in the Rural High Needs Appraisal Waiver Program Understanding Desktop Underwriter Advanced 79
Slide 81: Property and Appraisal Information
Property and Appraisal Information Appraisal Waiver Updates Available for Certain Purchase and Refinance DU Casefiles – When a casefile is eligible for an appraisal waiver, Fannie Mae accepts the “submitted” value estimate as the market value. – Fannie Mae provides relief of reps and warranties on t
Slide 82: Property and Appraisal Information
Property and Appraisal Information Fannie offers Enforcement Relief on reps/warranties related to property value on certain loan casefiles when: – Appraisal received a CU Risk Score of 2.5 or below, and – Property type is a one-unit detached, attached or condominium property The following fields mus
Slide 83: Property and Appraisal Information
Property and Appraisal Information If Property Type Condominium, Project Review Type Message Will Appear: 2018-01 detached condos no longer require project approval (excluded manufactured homes) Understanding Desktop Underwriter Advanced 82
Slide 84: Underwriting Analysis Report
Underwriting Analysis Report Take Note Of… Understanding Desktop Underwriter Advanced 83
Slide 85: Underwriting Analysis Report
Underwriting Analysis Report Page #2 Validate the Details Understanding Desktop Underwriter Advanced 84
Slide 86: Underwriting Analysis Report
Underwriting Analysis Report Amortization Type –Fixed or ARM? –ARM •Note Rate vs. Qualifying Rate Understanding Desktop Underwriter Advanced 85
Slide 87: Underwriting Analysis Report
Underwriting Analysis Report ARM Qualifying Rate https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting- Borrowers/Chapter-B3-6-Liability-Assessment/1736872401/B3-6-04-Qualifying-Payment-Requirements-04- 15-2014.htm Always Enter The Index And Margin On ARM
Slide 88: ARMS: LIBOR-SOFR Transition
ARMS: LIBOR-SOFR Transition https://www.fanniemae.com/content/news/libor-sofr-transition?utm_campaign=ssn- sell2019iss&utm_source=sfsfmc&utm_medium=email&utm_content=eml-noa-1120b-o-n&utm_term=b2b Presentation Title Insert Legal Copy 87
Slide 89: Reminders
Reminders • Lenders are responsible for integrity of the data submitted to DU – Do you have all pages to the bank statement and are all large deposits addressed and sourced? – Retirement accounts? Access verified if required? Fully vested? Did you subtract any outstanding loans and is applicant full
Slide 90: Reminders and Updates From Fannie Mae
Reminders and Updates From Fannie Mae • Lenders are responsible for integrity of the data submitted to DU – Deferred loans must always be included in the debt ratio; Use amount on credit report, 1% of unpaid balance or actual verified payment – Student loans in repayment use actual payment per credi
Slide 91: Reminders and Updates From Fannie Mae
Reminders and Updates From Fannie Mae • Lenders are responsible for integrity of the data submitted to DU – Loans in process where an appraisal as been ordered and submitted and the property is in a designated disaster area, property will become eligible for a PIW on a future transaction if it meets
Slide 92: Reminders and Updates From Fannie Mae
Reminders and Updates From Fannie Mae • Lenders are responsible for integrity of the data submitted to DU – DU casefile or the Doc File ID may not be used more than once and a new error message will appear if a lender attempts to do so – DU loan casefile archival policy is extended from 270 days (9
Slide 93: Reminders and Updates From Fannie Mae
Reminders and Updates From Fannie Mae • Lenders are responsible for integrity of the data submitted to DU – An appraisal waiver is not eligible for investment properties if you are using rental income from the subject property – Appraisal waiver is not eligible if an appraisal has been uploaded thro
Slide 94: Previous Communications
Previous Communications Understanding Desktop Underwriter Advanced 93
Slide 95: Announcement 2019-07
Announcement 2019-07 Selling Guide Update- Highlights Introduces construction-to-permanent financing for manufactured homes. Lenders may now use construction-to-permanent single-closing or two- closing financing options when originating a manufactured home loan. They also now permit limited cash-o
Slide 96: Announcement 2019-07
Announcement 2019-07 Selling Guide Update- Highlights Updates lender quality control (QC) requirements. Updated lender QC process requirements to provide more clarity and flexibility to lenders. Specifically, Fannie added requirements to the QC vendor reporting timeframes and the statistical sampl
Slide 97: Announcement 2019-06
Announcement 2019-06 Selling Guide Update HomeReady - updated the Selling Guide to include the changes related to area median income (AMI) limits for HomeReady mortgage loans that were previously announced. Compliance with Office of Foreign Assets Control Regulations – updated with additional cl
Slide 98: Announcement 2019-06
Announcement 2019-06 Selling Guide Update- continued Definition of Relocation Loans - Relocation loan is now defined as an owner-occupied purchase money loan, originated pursuant to an established employee relocation program, administered by the employer (or its agent), where the employer relocate
Slide 99: Lender Letter LL 2019-06
Lender Letter LL 2019-06 Lender Letter-2019-06 • During the weekend of July 20th Fannie Mae updated DU reflecting these changes. • HomeReady® income eligibility will be limited to 80% AMI in ALL areas including low income. • DU Eligibility Assessment will also be updated the weekend of July 20th Und
Slide 100: DU 10.3 May 2019
DU 10.3 May 2019 DU Updates weekend of July 20 – HomeReady AMI & 2019 Income updates • Boarder income –boarder may not have ownership in the property • Multiple financed properties-max of two including subject – DU Validation Service Enhancements • All retirement income now eligible for validation –
Slide 101: Announcement 2019-05
Announcement 2019-05 Selling Guide Update • Updated Cash Flow Form 1084 due to Tax Reform Policy • Title Insurer Rating Requirements – Must be licensed and lender approved NOT rated • Signature Requirement for Initial Uniform Residential Loan Application (URLA) (Form 1003) has been removed unless cl
Slide 102: Lender Letter LL 2019-05
Lender Letter LL 2019-05 https://www.fanniemae.com/content/announcement/ll1905.pdf Understanding Desktop Underwriter Advanced 10 1
Slide 103: Announcement 2019-04
Announcement 2019-04 Selling Guide Updates • Occupancy Types: updated to align with the recent changes announced in Lender Letter LL-2019-04, Loan Level Price Adjustments for Second Homes. • Properties Affected by a Disaster: Minor edits were made to align with the DU 10.3 • Debt-to-Income Ratios: A
Slide 104: Announcement 2019-03
Announcement 2019-03 Selling Guide Updates • HomeReady® Mortgage Loans (Lenders can implement now but must by 6/15/19) – Updates to multiple financed properties, boarder income, and MI coverage for HomeReady combined with Homestyle Renovation • Self-Report Process (moving from email to loan quality
Slide 105: DU Version 10.3 March Update Release Notes
DU Version 10.3 March Update Release Notes Understanding Desktop Underwriter Advanced 10 4
Slide 106: Announcement 2019-02
Announcement 2019-02 Selling Guide Updates • Eligibility Requirements for Manually Underwritten Loans – changes to align with the credit risk assessment in DU 10.3 focused on multiple risk facts such as lower credit scores with higher DTIs (Lenders may implement immediately but required for apps dat
Slide 107: Announcement 2019-01
Announcement 2019-01 Selling Guide Updates – Loan Quality Connect™ (Fannie’s new platform to manage post-purchase review process – replacing the QAS system) – Cost of Funds Index (COFI) Retirement • Removing references from Selling Guide – Requirements for Postponed Improvements • Must be a custodia
Slide 108: Genworth Rate Express
Genworth Rate Express® Understanding Desktop Underwriter Advanced 10 7
Slide 109: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Understanding Desktop Underwriter Advanced 10 8
Slide 110: LOS Connections
LOS Connections Understanding Desktop Underwriter Advanced 10 9
Slide 111: Training Tools and Information
Training Tools and Information Understanding Desktop Underwriter Advanced 11 0
Slide 112: Training Tools and Information
Training Tools and Information Understanding Desktop Underwriter Advanced 11 1
Slide 113: Additional MI Site Information
Additional MI Site Information Understanding Desktop Underwriter Advanced 11 2
Slide 114: Your Genworth Resources
Your Genworth Resources ActionCenter®: 800 444.5664 Your Local Genworth Regional Underwriter Your Genworth Sales Representative Understanding Desktop Underwriter Advanced 11 3
Slide 115: 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 (February 2020) on 6ix