Embed Size (px)
Citation preview
Genworth Mortgage Insurance Corporation ©2019 Genworth Financial, Inc. All rights reserved.
Quarterly Agency Updates and Communications 2nd Quarter 2019
Agenda Fannie Mae
– Notification Center– Lender Announcements and Letters– Program Updates
Freddie Mac– Subscription Center– Lender Bulletins and Letters– Product Updates
This presentation may not include all Agency communications.
Agency Updates 2nd Quarter 2019 2
https://www.fanniemae.com/singlefamily
Fannie Mae Website- Single Family
Agency Updates 2nd Quarter 2019 5
https://www.fanniemae.com/singlefamily/news
Agency Updates 2nd Quarter 2019 6
Quarterly Milestones
7Agency Updates 2nd Quarter 2019
Quarterly Milestones
Fannie Mae Communications…Announcements, Lender Letters, Release Notes
8Agency Updates 2nd Quarter 2019
The New URLA
Agency Updates 2nd Quarter 2019 9
Lender Letter LL 2019-06
10
Lender Letter-2019-06 During the weekend of July 20th
Fannie Mae will update DU implementing 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
Agency Updates 2nd Quarter 2019 10
Announcement 2019-05
11
Selling Guide Update • Updated Cash Flow Analysis Form 1084 due to Tax Reform Policy Title Insurer Rating Requirements • Signature Requirement for Initial Uniform •Residential Loan Application (URLA) (Form 1003) has been removed unless closing with a POA-Purchase of Certain LIBOR Adjustable •Rate Mortgage (ARM) Loans are restricted Miscellaneous Selling Guide Updates •
Agency Updates 2nd Quarter 2019
https://www.fanniemae.com/content/announcement/sel1905.pdf
Lender Letter LL 2019-05
12Agency Updates 2nd Quarter 2019
https://www.fanniemae.com/content/announcement/ll1905.pdf
Announcement 2019-04
13
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: Added a reference to high LTV refinance transactions to align with existing DTI policy.
Loans with Resale Restrictions: Loan and Borrower Eligibility: Reverted an erroneous edit to occupancy requirements.
Agency Updates 2nd Quarter 2019
SEL 2019-04
LL 2019-04
14Agency Updates 2nd Quarter 2019
https://www.fanniemae.com/content/pricing/llpa-matrix.pdf
Announcement 2019-03
15
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 management system, Loan Quality Connect)
Multiple Servicers for Fannie Majors program
Miscellaneous Selling Guide Updates
Agency Updates 2nd Quarter 2019
SEL 2019-03
UCD Seller Data Mandate
16Agency Updates 2nd Quarter 2019
UCD Seller Data Mandate Reminder
HPSI- June
17Agency Updates 2nd Quarter 2019
HSPI June
HPSI- May
18Agency Updates 2nd Quarter 2019
HPSI May
HPSI – April
19Agency Updates 2nd Quarter 2019
HPSI April
Economic and Strategic Research- June
20Agency Updates 2nd Quarter 2019
https://www.fanniemae.com/portal/media/corporate-news/2019/economic-housing-outlook-061719-6885.html
Economic and Strategic Research- May
21Agency Updates 2nd Quarter 2019
https://www.fanniemae.com/portal/media/corporate-news/2019/economic-housing-outlook-051619-6871.html
Economic and Strategic Research – April
22Agency Updates 2nd Quarter 2019
https://www.fanniemae.com/portal/research-insights/perspectives/mortgage-lenders-new-technologies-042219.html
Freddie Mac Updates Freddie Mac’s Website
– Link to www.freddiemac.com– Subscription Center– Learning Center– http://www.freddiemac.com/loanadvisorsuite/– Single Family News– Pending Loan Product Advisor® Enhancements
Agency Updates 2nd Quarter 2019 23
www.freddiemac.com
24Agency Updates 2nd Quarter 2019 24
https://sf.freddiemac.com/about/single-family/subscription-center
Freddie Mac Communications Bulletins
25Agency Updates 2nd Quarter 2019
Bulletin 2019-16
26
Home Possible Mortgages Changes to income limits including revised
borrower income limit, 2019 AMI limits, LPA impacts
Updates to requirements for rental income Extension of effective date for previously
revised requirements limiting financed properties owned
Income Updates to LPA asset and income modeler
(AIM) – self employed borrowers Revised requirements for obtaining
borrower signature on the 4506-T
Agency Updates 2nd Quarter 2019
Bulletin 2019-16
27
Properties located in Eligible Disaster Areas Simplification to the age of
documentation requirements for disasters
Calculation of monthly housing expense
Updates requirements for including real estate taxes in monthly housing expense
Environmental hazard disclosure Extending effective date for disclosure
requirement
Agency Updates 2nd Quarter 2019
Upcoming Changes - June 2019
28Agency Updates 2nd Quarter 2019
https://sf.freddiemac.com/content/_assets/resources/pdf/fact-sheet/upcoming_requirement_changes.pdf
Bulletin 2019-15
29
• On July 28, Loan Product Advisor and the Home Possible Income & Property Eligibility tool will be updated to reflect Borrower income limits of 80% of the AMI as well as the 2019 AMI limits
• The policy applies for loans, including those in low-income census tracts
Agency Updates 2nd Quarter 2019
Bulletin 2019-12
30
• Removal of requirement to perform a final interior inspection for deed-in-lieu properties
• EDR Code updates• Updates to subsequent transfers of
servicer requirements for mortgage registered with MERS
• Clarification of escrow requirements• Removal of the requirements for
participation mortgage from the Guide• Updates to Exhibit 33
(acknowledgement agreement incorporated provisions)
• Miscellaneous smaller updates• Reminder on servicing mortgage
impacted by Eligible Disasters
Agency Updates 2nd Quarter 2019
Bulletin 2019-11
31
:Condominium project requirements– Ineligible condominium projects– Condominium project reviews
• Reciprocal Review PERS & HRAP
– Streamline Review 75/75/90% Primary, 70/70/75% Second & Investment homes
– Condominium projects with commercial parking facilities
• May exclude commercial parking facilities from the commercial or non-residential space calculation when determining whether a project contains excessive commercial or non-residential space
Agency Updates 2nd Quarter 2019
Bulletin 2019-11
32
Credit underwriting and mortgage eligibilityrequirements:
– Revisions to recovery period requirements for borrowers with a discharged Chapter 12 bankruptcy to be the same as Chapter 13 (24 months)
– To expand Mortgage eligibility for Manufactured Homes, we are allowing Mortgages secured by Manufactured Homes with proceeds used to pay the outstanding balance under a land contract or contract for deed to be eligible for sale to Freddie Mac.
– Updated language specifying bridge loan payments must be included in DTI ratio
Agency Updates 2nd Quarter 2019
BUL 2019-11
Bulletin 2019-11
33
-Continued
• Private flood insurance requirements –updates to clarify acceptance of private flood insurance
• Addition of the demographic information addendum to Form 65, Uniform Residential Loan Application.
• Addition of eMortgage requirements to the Guide.
Agency Updates 2nd Quarter 2019
BUL 2019-11
Bulletin 2019- 10
34
,Due to the anticipated discontinuance of the publication of the LIBOR index in 2021Freddie will no longer purchase LIBOR ARMs with Settlement Dates more than six months after the Note Date. This change is effective immediately and is being implemented in consultation with the FHFA.
Agency Updates 2nd Quarter 2019
Bulletin 2019- 9Selling Updates• Property eligibility and appraisal
requirements• Property with Accessory Units no longer
require a comp with accessory unit• Appraisal re-use without an update if within
120 days of refinance• Allowing Modification construction
conversion documentation for MH.• Income starting after the note date
• Requiring verification of additional funds only when there are more than 15 calendar days between the Note Date and the start date of the new employment..
• Freddie Mac CHOICEHomeSM.• Loan Product Advisor resubmission will
be required any time the DTI ratio exceeds 45%
35Agency Updates 2nd Quarter 2019
Bulletin 2019- 7
36Agency Updates 2nd Quarter 2019
Selling Updates• Home Possible® Mortgages
• Occupying borrower can only own 2 financed properties including the subject
• Assets as a basis for repayment of obligations- Seller to divide the net eligible assets by 240 instead of 360 to determine the amount used to establish the debt payment-to-income ratio.
• Second home mortgages• Permit second homes with seasonal
limitations on year-round occupancy• Property may be rented out on a short-term basis
provided that borrower keeps property more than 6 mos as primary residence & property is not subject to a management company or involve revenue sharing.
Bulletin 2019- 7
37Agency Updates 2nd Quarter 2019
Selling Updates• Income documentation requirements
• Clarifying for certain types if the document is current it meets the receipt and income type for documentation purposes. Separate verification of current receipt of income is not required if the documentation obtained to support income type, source, payment frequency and predetermined payment amount also verifies current receipt of income.
• Guide Form 1077, Uniform Underwriting and Transmittal Summary
• The Single Security Initiative• Other Miscellaneous updates
Bulletin 2019- 7
38Agency Updates 2nd Quarter 2019
Selling Updates• Home Possible® Mortgages
• Occupying borrower can only own 2 financed properties including the subject
• Assets as a basis for repayment of obligations- seller can use 240 months instead of 360 months.
• Second home mortgages• Allows for homes at are not accessible year
round• Can be rented out but not subject to a management
company or involve revenue sharing.
• Income documentation requirements• Clarifying for certain types if the document is
current it meets the receipt and income type for documentation purposes.
• Guide Form 1077, Uniform Underwriting and Transmittal Summary
• The Single Security Initiative• Other Miscellaneous updates
Freddie Mac Communications Tools
39Agency Updates 2nd Quarter 2019
Loan Product Advisor Documentation Matrix
40Agency Updates 2nd Quarter 2019
http://www.freddiemac.com/learn/pdfs/uw/docmatrix.pdf
Loan Product Advisor Documentation Matrix
41Agency Updates 2nd Quarter 2019
Tool to help document files
https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf
GreenChoice Mortgages
42Agency Updates 2nd Quarter 2019
https://sf.freddiemac.com/content/_assets/resources/pdf/other/greenchoice_mortgages.pdf
An Enhanced Single-Family Guide and Website
43Agency Updates 2nd Quarter 2019
https://www.youtube.com/watch?v=tKp1W7PWbzA
Community Lender News
44Agency Updates 2nd Quarter 2019
Community Lender News
Choice Products
45Agency Updates 2nd Quarter 2019
CHOICEHome GreenCHOICE
Community Lender News
46Agency Updates 2nd Quarter 2019
Community Lender News
Help the Borrowers of the Future
47Agency Updates 2nd Quarter 2019
https://www.borrowerofthefuture.com/insights/videos/mortgage-tech-innovation?utm_source=eloqua&utm_medium=email&utm_campaign=2019-04-11_CLN_NEWSLTTR_
Genworth Underwriting Guidelines
Agency Updates 2nd Quarter 2019 48
Genworth Rate Express®
Agency Updates 2nd Quarter 2019 49
LOS Connections
50Agency Updates 2nd Quarter 2019
Training Tools and Information
Agency Updates 2nd Quarter 2019 51
Training Tools and Information
52Agency Updates 2nd Quarter 2019 52
Additional MI Site Information
Agency Updates 2nd Quarter 2019 53
ActionCenter®: 800 444.5664 Your Local Genworth
Regional Underwriter Your Genworth Sales
Representative
Your Genworth Resources
Agency Updates 2nd Quarter 2019 54
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.
Home Ready® and Desktop Underwriter® or DU® are registered trademarks of Fannie MaeLoan Quality Connect™, Servicing Management Default Underwriter™ (SMDU™) are trademarks of Fannie MaeLoan Product Advisor®, Home Possible®, Loan Collateral Advisor® are registered trademarks of Freddie MacServicer Honors and Rewards Program (SHARP)SM is a servicemark of Freddie MacActionCenter® and Rate Express® are registered trademarks of Genworth Mortgage Insurance
Agency Updates 2nd Quarter 2019 55
