Enact Holdings, Inc. · NASDAQ:ACT
Enact — Investor Presentation (September 2020)
40 slides from Enact's investor presentation, September 2020
Slide 1: Liabilities – Calculating the DTI
Liabilities – Calculating the DTI Suggested Best Practices and Reminders September 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 Today’s session will provide reminders and refresh attendees on the requirements for calculating the DTI for Fannie Mae and Freddie Review Liabilities - Calculating the DTI 1
Slide 3: Fannie Mae LL-2020-03
Fannie Mae LL-2020-03 Fannie Mae COVID-19 Policy Updates https://singlefamily.fanniemae.com/media/22316/display Liabilities - Calculating the DTI
Slide 4: Fannie Mae LL-2020-03 Effective June 2, 2020 And Remains Effective Until Further Notice
Fannie Mae LL-2020-03 Effective June 2, 2020 And Remains Effective Until Further Notice Updated Policy for new Purchase and refinance transactions – Lenders must review borrower’s credit report to determine the status of all mortgage loans. In addition, lenders must apply due diligence for each mort
Slide 5: LL-2020-03
LL-2020-03 Liabilities - Calculating the DTI 4
Slide 6: COVID-19 Updates!!
COVID-19 Updates!! Freddie Mac released Selling Updates and Appraisal Flexibilities in Bulletin 2020-05 on 3/23/20 and Bulletin 2020-08 on 3/31/20 & 2020-11 on 4/14/2020 and 2020-23 on 6/11/2020 and Bulletin 2020-27 on 7/9/2020 https://guide.freddiemac.com/app/guide/content/a_id/1003723 https://guid
Slide 7: Bulletin 2020-17
Bulletin 2020-17 TEMPORARY PURCHASE AND REFINANCE ELIGIBILITY REQUIREMENTS FOR BORROWERS WITH EXISTING MORTGAGES These temporary requirements are effective for Mortgages with Application Received on and after June 2, 2020 and until further notice. It is encouraged to implement these requirements to
Slide 8: Liabilities - Calculating the DTI
Liabilities - Calculating the DTI 7
Slide 9: Liabilities - Calculating the DTI
Liabilities - Calculating the DTI 8
Slide 10: Liabilities and the Credit Report
Liabilities and the Credit Report • Best Practices: – Review the 1003 section, don’t assume it was completed properly – Review credit report, ensure all liabilities populated correctly (i.e. leases, mortgages) – Any judgements or tax liens – Review pay stubs for additional debt (undisclosed debt) –
Slide 11: Loan Application
Loan Application Now review with Applicant and ask questions: – Any additional? – Any errors? Payments incorrect? – Is someone else’s debt appearing on the credit report/1003 in error? – Is someone else or a business paying a debt that could be documented? Not All Liabilities Appear On The Credit Re
Slide 12: Documentation Matrix – Freddie Mac
Documentation Matrix – Freddie Mac – Documentation Matrix- August 2020 – Assists with processing and documenting loan files – Be mindful of Product Overlays https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf Liabilities - Calculating the DTI 11
Slide 13: Debts Included in the DTI - Freddie Mac
Debts Included in the DTI - Freddie Mac Page 28 doc matrix Did You Verify Taxes, Insurance And HOA For Properties Owned? Even For Properties Owned Free And Clear, They Should Be Included Liabilities - Calculating the DTI 12
Slide 14: Freddie Mac liabilities fact sheet link
https://sf.freddiemac.com/content/_assets/resources/pdf/fact-sheet/conv_lp_liabilities.pdf Liabilities - Calculating the DTI 13
Slide 15: Freddie Mac and Student Loans
Freddie Mac and Student Loans Payments must be included in DTI even if the CARES Act allows for deferment https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf Page 29 Liabilities - Calculating the DTI 14
Slide 16: Debts Included in the DTI – Fannie Mae
Debts Included in the DTI – Fannie Mae The total monthly obligation is the sum of the following: – Monthly housing expense (PITIA) – Monthly payments on installment debts and other mortgage debts that extend beyond ten months (including deferred installment loans); – Monthly payments on revolving de
Slide 17: Debts Included in the DTI – Fannie Mae
Debts Included in the DTI – Fannie Mae The total monthly obligation….cont. (B3-6-05) – 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
Slide 18: Fannie Mae Student Loan Policy
Fannie Mae Student Loan Policy Student Loans – Is it Deferred or in Repayment? B3-6-05 Payments must be included in DTI even if the CARES Act allows for deferment Liabilities - Calculating the DTI 17
Slide 19: Common Liability Errors
Common Liability Errors Avoid These Errors: –Student loans excluded because of CARES ACT – this is not acceptable per Fannie Mae and Freddie Mac Guidelines. –Taxes, insurance and HOA payments excluded for properties owned free and clear –Inquires not cleared and resulted in a new loan before closing
Slide 20: Fannie Mae Website
Fannie Mae Website https://singlefamily.fanniemae.com/originating-underwriting Liabilities - Calculating the DTI 19
Slide 21: Fannie Mae Job Aids/FAQs
Fannie Mae Job Aids/FAQs https://singlefamily.fanniemae.com/learning-center/originating-and-underwriting Liabilities - Calculating the DTI 20
Slide 22: Fannie Mae Top Trending Questions
Fannie Mae Top Trending Questions https://singlefamily.fanniemae.com/faq-top-trending-selling-faqs Liabilities - Calculating the DTI 21
Slide 23: Freddie Mac website
https://sf.freddiemac.com/ Liabilities - Calculating the DTI 22
Slide 24: Freddie Mac resources link
https://sf.freddiemac.com/content/_assets/resources/pdf/other/nc_resources.pdf Liabilities - Calculating the DTI 23
Slide 25: Freddie Mac LPA resources link
https://sf.freddiemac.com/content/_assets/resources/pdf/fact-sheet/lpa_resources.pdf Liabilities - Calculating the DTI 24
Slide 26: Documentation and Rental Income Matrix
Documentation and Rental Income Matrix – Documentation Matrix Updated August 2020 – Rental Income Matrix Updated July 2020 Liabilities - Calculating the DTI 25
Slide 27: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Liabilities - Calculating the DTI 26
Slide 28: Genworth MI Top Decision Errors
Genworth MI Top Decision Errors https://new-content.mortgageinsurance.genworth.com/2020-08/MI%20Decision%20Tips%202Q%202020.pdf Liabilities - Calculating the DTI 27
Slide 29: Genworth MI Decision Tips link
https://new-content.mortgageinsurance.genworth.com/2020-08/MI%20Decision%20Tips%202Q%202020.pdf Liabilities - Calculating the DTI 28
Slide 30: Genworth MI Decision Tips link
https://new-content.mortgageinsurance.genworth.com/2020-08/MI%20Decision%20Tips%202Q%202020.pdf Liabilities - Calculating the DTI 29
Slide 31: Genworth MI Decision Tips Updated Every Quarter
Genworth MI Decision Tips Updated Every Quarter https://new-content.mortgageinsurance.genworth.com/2020-08/MI%20Decision%20Tips%202Q%202020.pdf Liabilities - Calculating the DTI 30
Slide 32: Genworth MI Decision Tips link
https://new-content.mortgageinsurance.genworth.com/2020-08/MI%20Decision%20Tips%202Q%202020.pdf Liabilities - Calculating the DTI 31
Slide 33: Genworth Underwriting Guidelines
Genworth Underwriting Guidelines Liabilities - Calculating the DTI 32
Slide 34: Genworth Rate Express®
Genworth Rate Express® Liabilities - Calculating the DTI 33
Slide 35: LOS Connections
LOS Connections Liabilities - Calculating the DTI 34
Slide 36: Training Tools and Information
Training Tools and Information Liabilities - Calculating the DTI 35
Slide 37: Training Tools and Information
Training Tools and Information Liabilities - Calculating the DTI 36
Slide 38: Additional MI Site Information
Additional MI Site Information Liabilities - Calculating the DTI 37
Slide 39: Your Genworth Resources
Your Genworth Resources ➢ ActionCenter®: 800 444.5664 ➢ Your Local Genworth Regional Underwriter ➢ Your Genworth Sales Representative Liabilities - Calculating the DTI 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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