Freddie Mac’s Home Possible® - Genworth Financial...Freddie Mac’s Home Possible® Mortgages...

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Freddie Mac’s Home Possible®

An Overview

July 2016

2

AgendaIn Today’s Session We Will Cover


– Overview and Benefits

– Website & Bulletins

– General Eligibility of the Program

– Affordable Income & Property Eligibility tool

– Homebuyer Education Requirements

– Marketing Tools

Genworth Mortgage Rate Express® and MI Guidelines

– Resources and Tools

3Freddie Mac Home Possible and Home Possible Advantage

Home Possible Overview and Benefits

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

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


Home Possible Website

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

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


2015-21 & 2016-8 Bulletins


2016-11 Bulletin


Mortgages

Home Possible: 95% LTV

• Underwriting Path: May be

submitted to LP or manually

underwritten (accept manufactured)

• LTV: Maximum LTV & TLTV of 95%

• Property Options: 1-4 units,

condos and PUD’s, manufactured

homes with restrictions.

• Mortgage Flexibility: 15- to 30-year

fixed rate mortgages, *5/1, **7/1,

and **10/1 ARM’s.

• Refinance Options: No cash-out• Primary Residence Only: All

borrowers must occupy the property as

their primary residence.

Home Possible Advantage:

97% LTV

• Underwriting Path: May be submitted to LP or manually underwritten

• LTV: Maximum LTV of 97% & TLTV of 105%

• Property Options: 1 unit only, condos and PUD’s, manufactured homes are not eligible.

• Mortgage Flexibility: Fixed rate with a term of up to 30 years

• Refinance Options: No cash-out• Primary Residence Only: All

borrowers must occupy the property as their primary residence.

*5/1 ARM 1 or 2 units, no manufactured **7/1 and 10/1 ARMs 1 or 2 units

Freddie Mac Home Possible and Home Possible Advantage


Mortgages


• Property Ownership: The borrower may not, as of the note date, have any ownership interest in any other residential properties

• Minimum Borrower Contribution: 1 unit- none, 2-4 unit ≤80% LTV- none, 2-4 unit ≥80% LTV- 3%

• Minimum Reserves: 1unit- none required, 2-4 units- Two months

• Secondary Financing: Any acceptable secondary financing is allowed.


97% LTV

• Property Ownership: The

borrower may not, as of the note

date, have any ownership interest

in any other residential properties

• Minimum Borrower

Contribution: 1 unit- none,

• Minimum Reserves: 1unit- none

required, 2-4 units- N/A

• Secondary Financing: Only an

Affordable Second®



Mortgages


• Income Limits: The borrower must meet income limits. Loan Prospector will indicate income eligibility; for non-Loan Prospector mortgages use the Affordable Income & Property Eligibility tool on Freddie Mac.com

• Allows eligible incomes up to 100 percent of the area median, higher if purchasing a home in a high-cost area – or no income limit if the home is located in a low- to moderate-income or underserved community.


97% LTV

• Income Limits: The borrower must meet income limits. Loan Prospector will indicate income eligibility; for non-Loan Prospector mortgages use the Affordable Income & Property Eligibility tool on Freddie Mac.com

• Allows eligible incomes up to 100 percent of the area median, higher if purchasing a home in a high-cost area – or no income limit if the home is located in a low- to moderate-income or underserved community.



Affordable Income & Property Eligibility

tool

http://ww3.freddiemac.com/ds2/sell/affgold.nsf/frmHomePage?OpenForm

http://ww3.freddiemac.com/ds2/sell/affgold.nsf/frmHomePage?OpenForm


Mortgages


• Credit Underwriting Loan

Prospector: A borrower’s credit

reputation is acceptable if the

Home Possible mortgage

receives a risk class of Accept.

• Credit Underwriting on Manual

Underwritten Loans: See below


97% LTV

• Credit Underwriting Loan

Prospector: A borrower’s credit

reputation is acceptable if the

Home Possible mortgage

receives a risk class of Accept.

• Credit Underwriting on Manual

Underwritten Loans: See below



MortgagesHome Possible: 95% LTV

• Loan Prospector Entry: Use

Loan Prospector Offering

Identifier Code “241”

Home Possible Advantage: 97% LTV

• Loan Prospector Entry: Use

Loan Prospector Offering

Identifier Code “250”



Mortgage Insurance Requirements

Education Requirements

14

Homeownership educationWhen all the Borrowers are First-Time Homebuyers for purchase transaction Home Possible® Mortgages, at least one qualifying Borrower must participate in a homeownership education program before the Note Date, or the Effective Date of Permanent Financing for Construction Conversion and Renovation Mortgages. Homeownership education must be provided by a party not involved in the sale or financing of the property; if provided by the originating lender or by the Seller, the homeownership education must be conducted by someone not directly involved in the loan origination, processing or approval process.

Homeownership education programs may use different formats and require different lengths of time to complete. The following are acceptable: • Internet (on-line) homeownership education programs that have been developed by

mortgage insurance companies• Homeownership education programs that meet the standards of the National

Industry Standards for Homeownership Education and Counseling (www.homeownershipstandards.com)

• Programs using Freddie CreditSmart® provided Module 1 (Your Credit and Why It is Important), Module 2 (Managing Your Money), Module 7 (Thinking Like a Lender), Module 11 (Becoming a Homeowner), and Module 12 (Preserving Homeownership: Protecting Your Investment) are included


http://www.homeownershipstandards.com/


Updated Education Requirements

Education Requirements

16

Landlord education (2- to 4-unit Primary Residences)

• Purchase Transactions — At least one qualifying Borrower must participate in a

landlord education program before the Note Date, or the Effective Date of

Permanent Financing for Construction Conversion and Renovation Mortgages.

A copy of a certificate evidencing successful completion of the landlord

education program must be retained in the Mortgage file.

• Refinance Transactions — Landlord education is not required but is

recommended for Borrowers who have not previously attended a program.



Updated Education Requirements


http://www.freddiemac.com/creditsmart/tutorial.html

http://www.freddiemac.com/creditsmart/tutorial.html


mi.Genworth.com

https://mortgageinsurance.genworth.com/LenderServices/HomebuyerEducation.aspx

https://mortgageinsurance.genworth.com/LenderServices/HomebuyerEducation.aspx


Postsettlement Delivery Fees

http://www.freddiemac.com/singlefamily/pdf/ex19.pdf

http://www.freddiemac.com/singlefamily/pdf/ex19.pdf


Marketing Materials

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mi.Genworth.com

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www.mi.genworth.com/

Genworth Rate Express Updated!

http://www.mi.genworth.com/cu

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www.mi.genworth.com/


Access Genworth Rates Using Rate

Express Mobile App Or Desktop

– Only 5 Required Fields

– Find Our MI Rates And Products And

Compare Them To FHA

– Find Previous Quotes With “Scenario

ID”

– Like The Rate? Order MI Directly From

The Results Screen!

– Compare Up To 4 Quotes!


25


rQEEmatT6791341D

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Results for 97%, Home Possible with 25% Coverage; Now run a second

comparison as a Standard 97% which requires 35% coverage

Genworth Rate Express

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And consider the LLPA for this loan compared to a Home Possible that has a 680

or higher score – LLPA are waived*

Genworth Rate Express

*LLPA for Minimum Mortgage Insurance coverage option still would apply

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mi.genworth.com

Genworth Guidelines


29

www.mi.genworth.com

Genworth Guidelines

http://www.mi.genworth.com/

32

GENWORTH RESOURCES

Got Questions…We Have Answers

ActionCenter®: 800 444-5664

Your Local Genworth Underwriting Manager

Your Genworth Account Executive or Manager

Your Genworth Account Representative Is There To Answer Your Questions And Get

Your Loans Closed!

http://mortgageinsurance.genworth.com/

mailto:[email protected]?subject=Genworth Mortgage Insurance Website Inquiry

http://mortgageinsurance.genworth.com/pdfs/Other/MeetYourRegionalUW-201311.pdf

http://mortgageinsurance.genworth.com/Contact/FindMyRep.aspx

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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 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

IMPLIED, INCLUDING 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

HomeReadyTM

and Home by Fannie Mae™ are trademark s of Fannie MaeHomeStyle® Renovation, Community Seconds®, MyCommunityMortgage®, MCM®, Desktop Underwriter® and DU®are registered trademarks of Fannie Mae

Rate Express®

is a registered trademark of Genworth Mortgage Insurance CorporationSimply Underwrite

TMis a trademark of Genworth Mortgage Insurance Corporation

Freddie Mac’s Home Possible® - Genworth Financial...Freddie Mac’s Home Possible® Mortgages...

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