affordability options presentation - genworth financial › ... · – fannie mae’s homeready is...

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Affordability OptionsWhat are the OpportunitiesMay 2018

Have You Explored All Of The Options That Are Best For Your Borrower?

• HomeReady®

– Fannie Mae’s HomeReady is designed to help lenders confidently serve today’s market of creditworthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in low-income communities

– Offers reduced MI coverage on loans > 90% LTV and a waiver of LLPA’s on loans with LTV >80% and credit score ≥ 680

• Home Possible®

– Freddie Mac’s Home Possible mortgages offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities and disaster areas.

– Offers reduced MI coverage on loans >90% LTV and a waiver of postsettlement fees on loans with LTV >80% and credit score ≥ 680

Helping the Borrower

2Affordability Options

Home Possible Program Is Changing July 29, 2018 With Introduction Of HomeOneSM


AgendaIn Today’s Session We Will Cover‏

Overview and Benefits for HomeReady as well as Home Possible and Home Possible Advantage– HomeReady

• Website• Overview and Benefits• Quick Facts• Pricing Benefits• MI Coverage Requirements• Marketing Center/Options• Genworth benefits and tools


HomeReady Website

https://www.fanniemae.com/singlefamily/homeready?cmpid=sln082515‏

https://www.fanniemae.com/singlefamily/homeready?cmpid=sln082515

Benefits Fact Sheet and FAQ’s



HomeReady Product Matrix

https://www.fanniemae.com/content/fact_sheet/homeready-product-matrix.pdf

https://www.fanniemae.com/content/fact_sheet/homeready-product-matrix.pdf

HomeReady Quick Facts– Low down payment with up to 97% LTV financing for home

purchases– CLTV up to 105% for loans eligible Community Seconds transaction– Up to *97% Refinance available– Owner occupied (allows for non-occupying co-borrowers)– 2-4 unit, manufactured homes, condos, PUD eligible– 100% gift funds for single family properties and no reserves– Flexible sources of funds with no minimum contribution

requirement from borrower’s own funds (1-unit properties)– Follow DU for reserves, DTI documentation– Available for repeat buyers and buyers that own other properties– Homeownership education required for all purchase transactions– Available for borrower’s with minimal or no credit


*97% Refinance is available if Fannie Mae is the current investor on the existing loan, if not maximum LTV is 95%

HomeReady Quick Facts continued

– Simple income eligibility– Low-income census tract property

• No income limit– All other property locations

• 100% of area median income– Competitive pricing over standard pricing (LLPA’s)

– All LLPA waived for transactions with credit score of 680 or greater and LTV of 80% or greater

– Cancellable private mortgage insurance– Reduced MI coverage requirements for LTV’s above 90% (up to

97%)– Homebuyer Education required for all purchases and if all buyers

are relying on non-traditional credit references


Fannie Mae LLPA Differences


Fannie Mae LLPA DifferencesStandard‏-LTV 95%‏ 1.25

– *$2,500-LTV 95.01-97%‏ 1.50

– *$3,000

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HomeReady‏-LTV 95%‏ 0.0%

– $0-LTV 95.01-97%‏ 0.0%

– $0

Affordability Options

Example - 1 family, owner occupied, purchase, primary residence, fixed rate, non-manufactured property with a borrower underwriting credit score of 680. Loan amount is $200,000

*Fees typically acknowledged in a rate differential –meaning those fees are built into the interest rate

Fannie Mae Mortgage Insurance CoveragesStandard‏-LTV 95%‏ 30% Coverage

– $180. monthly MI-LTV 95.01-97%‏ 35% Coverage

– $233.33 monthly MI

11

HomeReady‏-LTV 95%‏ 25% Coverage

– $156.66 monthly MI-LTV 95.01-97%‏ 25% Coverage



Example - 1 family, owner occupied, purchase, primary residence, fixed rate, non-manufactured property with a borrower underwriting credit score of 680.Loan amount is $200,000 with monthly BPMI.Current Genworth Mortgage Insurance pricing examples

Fannie Mae Mortgage Insurance CoveragesStandard‏-LTV 95%‏ 30% Coverage

– $160. monthly MI-LTV 95.01-97%‏ 35% Coverage


12

HomeReady‏-LTV 95%‏ 25% Coverage




Example - 1 family, owner occupied, purchase, primary residence, fixed rate, non-manufactured property with underwriting credit score of 680.Loan amount is $200,000 with monthly BPMI. (assume only 1 borrower on loan)

Genworth Mortgage Insurance pricing examples as of June 4, 2018

NEW MI Rates For a loan with two borrowers,

97% factor is .84 in this exampleThe monthly premium is now $140

unit 1‏Owner Occupied‏Purchase‏Primary Residence‏Fixed Rate‏ Non-manufactured property‏Credit score of 680‏ Loan amount is $200,000‏Monthly BPMI‏ Assumes 1 borrower‏June 4 Genworth MI Rates‏

Standard Program vs. HomeReady

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LTV 95%‏$15.00 Monthly Savings *$2,500 Savings

LTV 97%‏$37.67 Monthly Savings @97% LTV*$3,000 Savings


=Borrower Satisfaction More Referrals $$$$

*Fees typically acknowledged in a rate differential


Income EligibilityUse the Income Eligibility Tools to Determine Income Limitations (if any)‏

Example Property Match 100% AMI


Example No Income Limit


Fannie Mae Marketing Center


Freddie Mac’sHome Possible and Home Possible Advantage‏



Home Possible Website

http://www.freddiemac.com/homepossible/

http://www.freddiemac.com/homepossible/

20

Home Possible Overview and Benefits

http://www.freddiemac.com/singlefamily/factsheets/sell/pdf/home_possible_97_572.pdf


Changing July 29 2018

http://www.freddiemac.com/singlefamily/factsheets/sell/pdf/home_possible_97_572.pdf

New Program HomeOneSM


– 97% LTV with 105% TLTV with an Affordable Second

– At least one borrower must be a First Time Home buyer

– No cash-out, must be a Freddie to Freddie refinance

– 1 unit primary only, includes condos and PUDS

– No income limits– Standard MI– Standard delivery fees

Home Possible Quick Facts– Owner Occupied (all borrowers must occupy)– Purchase and no cash-out refinancing– Maximum 97% LTV and 105% TLTV ratios for Home Possible

Advantage with an Affordable Second®

– 2-4 unit properties, condos, manufactured homes– Borrowers may NOT own other properties at closing*– Borrowers do NOT need to be a first time home buyer– Reduced Mortgage insurance coverage levels for LTV ratios greater

than 90%


*See Freddie Mac Seller/Servicer Guide For Exceptions

Home Possible Quick Facts– 100% Gift Funds and no reserves required for 1-unit properties– Follow Loan Product Advisor for DTI and reserves – Homebuyer education required for first time home buyers*

– Genworth education can be used to fulfil– Credit fee cap of 0.0% or 1.5%– Simple income eligibility

• Underserved areas and disaster areas (Changing July 29, 2018)–No income limit

• High cost areas (Changing 29, 2018)–Home Possible Income and Property Eligibility Tool

• All other property locations–100% of area median income


*First time buyer definition is no borrower has had homeownership in the most recent three years

http://www.freddiemac.com/homepossible/AMI-eligibility/

Freddie Mac Credit Fees in Price


Freddie Mac Credit Fees in Price Differences

Standard‏-LTV 95%‏ 1.25

– *$2,500

27

Home Possible and‏Home Possible Advantage‏-LTV 95%‏ 0.0%

– $0-LTV 95.01-97%‏ 0.0%

– $0


Example - 1 family, owner occupied, purchase, primary residence, fixed rate, non-manufactured property with a borrower underwriting credit score of 680.Loan amount is $200,000



Mortgage Insurance Requirements

Freddie Mac Mortgage Insurance CoveragesStandard‏-LTV 95%‏ 30% Coverage

– $180. monthly MI

29

Home Possible‏-LTV 95%‏ 25% Coverage




Example - 1 family, owner occupied, purchase, primary residence, fixed rate, non-manufactured property with a borrower underwriting credit score of 680.Loan amount is $200,000 with monthly BPMI.Current Genworth Mortgage Insurance pricing examples

Freddie Mac Mortgage Insurance CoveragesStandard‏-LTV 95%‏ 30% Coverage

– $160. monthly MI

30

Home Possible‏-LTV 95%‏ 25% Coverage




Example - 1 family, owner occupied, purchase, primary residence, fixed rate, non-manufactured property with underwriting credit score of 680.Loan amount is $200,000 with monthly BPMI. (assume only 1 borrower on loan)Genworth Mortgage Insurance pricing examples as of June 4, 2018

NEW MI Rates

For a loan with two borrowers, 97% factor is .84 in this exampleThe monthly premium is now $140

unit 1‏Owner Occupied‏Purchase‏Primary Residence‏Fixed Rate‏ Non-manufactured property‏Credit score of 680‏ Loan amount is $200,000‏Monthly BPMI‏Assumes 1 borrower‏June 4 MI Rates‏

Standard Program vs. Home Possible

31

LTV 95%‏$23.34 Monthly Savings *$2,500 Savings

LTV 97%‏97% LTV Allowed!

$41.67 Monthly Savings @97% LTV based on conventional requirements

*$3,000 Savings


=Borrower Satisfaction More Referrals $$$$


Freddie Mac Marketing Options


Freddie Mac Income Limits


Example 100% AMI Limit Property


Disaster Tract Going to 100% of AMI


Example Low Income Area


Homebuyer Education

An Educated Borrower Makes a Better Homeowner and Decreases Delinquencies


!Genworth’s online course helps you help more borrowers‏

– No fee!– Self-paced learning– Mobile device friendly – Pre and Post home purchase tips and

resources– Emailed Certificate to you and your

borrower upon Completion– Meets the National Industry Standards

for Homeownership Education– Satisfies the education requirement for

HomePossible

Fannie Mae’s HomeReady program requires Framework Homebuyer Education

Register your borrowers at: https://homebuyereducation.genworth.com/register

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https://homebuyereducation.genworth.com/register

Genworth Underwriting Guidelines


Genworth Rate Express®


New Lower MI Rates for Monthly and Singles


Cancellation Summary - HPA in Black


https://mortgageinsurance.genworth.com/pdfs/Marketing/GENERAL%20MARKETING-%20Cancellation%20Flier.pdf

https://mortgageinsurance.genworth.com/pdfs/Marketing/GENERAL%20MARKETING-%20Cancellation%20Flier.pdf

LOS Connections

Affordability Options 42

Training Tools and Information


Training Tools and Information

44Affordability Options 44

Additional MI Site Information



ActionCenter®: 800 444.5664 Your Local Genworth

Regional Underwriter Your Genworth Sales

Representative

Your Genworth Resources


Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials. While we strive for‏accuracy, we also know that any discussion of laws and their application to particular facts is subject to individual interpretation, change, and other uncertainties. Our training is not intended as legal advice, and is not a substitute for advice of counsel. You should always check with your own legal advisors for interpretations of legal and compliance principles applicable to your business.

,GENWORTH EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED‏INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE RELATED TRAINING. IN NO EVENT SHALL GENWORTH BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER WITH RESPECT TO THE TRAINING AND THE MATERIALS.

Genworth Mortgage Insurance Offers A Comprehensive Suite Of Training Opportunities To Boost Your Know-How, Benefit Your Bottom Line, And Serve Your

Borrowers Better. Visit mi.genworth.com To Learn More.

Collateral Underwriter®, Home Ready ®, Community Second® and Desktop Underwriter® or DU® are registered trademarks of Fannie MaeLoan Product Advisor®, Home Possible®, Home Possible Advantage®, Affordable Second ®, Loan Collateral Advisor® and Home Value Explorer® (HVE®) are registered trademarks of Freddie MacHomeOneSM is a registered Service mark of Freddie MacActionCenter®, Homebuyer Privileges® and Rate Express® are registered trademarks of Genworth Mortgage InsuranceSimply UnderwriteSM is a registered service mark of Genworth Mortgage Insurance

affordability options presentation - genworth financial › ... · – fannie mae’s homeready is...

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