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Genworth Mortgage Insurance Corporation ©2017 Genworth Financial, Inc. All rights reserved.
Freddie Mac’s Home Possible®
Mortgage
An Overview
November 2017
2Freddie Mac Home Possible and Home Possible Advantage
AgendaIn Today’s Session We Will Cover
Freddie Mac’s Home Possible
– Overview and Benefits
– Website & Recent Bulletins
– General Eligibility of the Program
– Affordable Income & Property Eligibility tool
– Homebuyer Education Requirements
– Resources and Tools
– Genworth Mortgage Rate ExpressSM and MI Guidelines
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
4Freddie Mac Home Possible and Home Possible Advantage
Home Possible Website
http://www.freddiemac.com/homepossible/
5Freddie Mac Home Possible and Home Possible Advantage
Updates - Bulletin 2017-11 UpdatedPolicy!
• Policy allows for gifts or grants from the Seller or originating lender ONLY after a contribution of 3% is made from the borrower’s personal funds or from other eligible sources of funds as described in the Guide.
• Gifts or grants from the Seller must NOT be funded through the Mortgage transaction, including differential pricing in rate, discount points, or fees for individual loans or across the Home Possible offering.
• See specific ULDD delivery requirements when using Lender gifts.
• Policy effective for loans with settlement dates on or after November 1, 2017
Lender Gifts And Grants Policy Applies To Home Possible And Home
Possible Advantage® Loans Only
6Freddie Mac Home Possible and Home Possible Advantage
Down payment Assistance
• Freddie Mac has a summary on down payment assistance and closing cost options.
• Lists information resources to search for sources in your area.
Pricing Updates
7Freddie Mac Home Possible and Home Possible Advantage
Product Benefit
• Delivery Fees are ZERO for loans with credit scores of 680 and above with an LTV > or = to 80%
• All other loans capped at 1.50%• Effective for Home Possible Loans with
settlement dates on or after July 1, 2016.
Freddie Mac’s Home Possible Mortgages
Home Possible: 95% LTV
• Underwriting Path: May be submitted
to Loan Product Advisor®
or manually
underwritten (except manufactured)
• 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 Loan Product Advisor or manually underwritten
• 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 7/1 and 10/1 ARM if secured by 1- or 2-unit primary residence other than a manufactured home
Freddie Mac Home Possible and Home Possible Advantage 8
Home Possible: 95% LTV
• Property Ownership: *The
borrower may not, as of the note
date, have any ownership
interest in any other residential
properties
Home Possible Advantage:
97% LTV
• Property Ownership: *The
borrower may not, as of the note
date, have any ownership interest
in any other residential properties
Freddie Mac Home Possible and Home Possible Advantage
*The borrower may have ownership interest in a residential property other than the mortgaged premises if the borrower does not occupy the property, and the lender documents the following:• The borrower inherited the ownership interest in the property & shares ownership with another party, or• The borrower owns the property with another party and the debt associated with the property was assigned to
the other party by a court order (e.g. divorce decree), or• The borrower is a cosigner/guarantor on the related mortgage debt and someone other than the borrower has
made the payments for the most recent 12 months
Freddie Mac’s Home Possible Mortgages
9
Home Possible: 95% LTV
• Minimum Borrower
Contribution:
Home Possible Advantage:
97% LTV
• Minimum Borrower
Contribution:
Freddie Mac Home Possible and Home Possible Advantage
Freddie Mac’s Home Possible Mortgages
10
Home Possible: 95% LTV
• Minimum Reserves:
Home Possible Advantage:
97% LTV
• Minimum Reserves
Freddie Mac Home Possible and Home Possible Advantage
Freddie Mac’s Home Possible Mortgages
11
Home Possible: 95% LTV Home Possible Advantage:
97% LTV
Freddie Mac Home Possible and Home Possible Advantage
Freddie Mac’s Home Possible Mortgages
12
Home Possible: 95% LTV Home Possible Advantage:
97% LTV
Freddie Mac Home Possible and Home Possible Advantage
Freddie Mac’s Home Possible Mortgages
13
Home Possible: 95% LTV
• Income Limits: The borrower must meet income limits. Loan Product Advisor will determine the income eligibility; for non-Loan Product Advisor mortgages, the Seller should 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 underserved community.
Home Possible Advantage:
97% LTV
Freddie Mac Home Possible and Home Possible Advantage
Freddie Mac’s Home Possible Mortgages
• Income Limits: The borrower must meet income limits. Loan Product Advisor will determine the income eligibility; for non-Loan Product Advisor mortgages, the Seller should 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 underserved community.
14
15Freddie Mac Home Possible and Home Possible Advantage
Updates - Bulletin 2017-26
UpdatedPolicy!• Policy effective Immediately
16Freddie Mac Home Possible and Home Possible Advantage
Income & Property Eligibility
http://www.freddiemac.com/homepossible/eligibility.html
17Freddie Mac Home Possible and Home Possible Advantage
Check A Loan You Have In Your Pipeline
http://www.freddiemac.com/homepossible/eligibility.html
18Freddie Mac Home Possible and Home Possible Advantage
Income & Property Eligibility
http://www.freddiemac.com/homepossible/results.html
Home Possible: 95% LTV
• Credit Underwriting Loan
Product Advisor: 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
or next slide for borrowers
without a credit score
Home Possible Advantage:
97% LTV
• Credit Underwriting Loan
Product Advisor: 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
Freddie Mac Home Possible and Home Possible Advantage
Freddie Mac’s Home Possible Mortgages
19
Home Possible Only
Freddie Mac Home Possible and Home Possible Advantage
Borrowers Without A Credit Score
20
Home Possible Only
Freddie Mac Home Possible and Home Possible Advantage
Borrowers Without A Credit Score
21
Home Possible: 95% LTV
• Loan Product Advisor Entry:
Use Offering Identifier Code
“241”
Home Possible Advantage: 97% LTV
• Loan Product Advisor Entry:
Use Offering Identifier Code
“250”
Freddie Mac Home Possible and Home Possible Advantage
Freddie Mac’s Home Possible Mortgages
22
23Freddie Mac Home Possible and Home Possible Advantage
Mortgage Insurance Requirements
Home Possible Education Requirements
24
Homebuyer Education Purchase Transaction
When all Borrowers are **First-Time Homebuyers, 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 or the originating lender or seller.
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 https://new.mi.genworth.com/
Freddie Mac Home Possible and Home Possible Advantage
Home Possible Education Requirements
25
Homebuyer Education Purchase Transaction
• Programs developed by HUD-approved counseling agencies, Housing Finance
Agencies (HFAs) or Community Development Financial Institutions (CDFIs)
• Homeownership education programs that meet the standards of the National
Industry Standards for Homeownership Education and Counseling
(www.homeownershipstandards.com)
• As an alternative Freddie Mac free financial literacy curriculum 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, or access the Credit Smart-Steps to Homeownership
Tutorial. The financial literacy curriculum cannot be provided by an interested
party to the transaction or the originating lender or the Seller.
Freddie Mac Home Possible and Home Possible Advantage
Home Possible Education Requirements
26Freddie Mac Home Possible and Home Possible Advantage
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.
27Freddie Mac Home Possible and Home Possible Advantage
http://www.freddiemac.com/creditsmart/tutorial.html
28Freddie Mac Home Possible and Home Possible Advantage
https://new.mi.genworth.com/
29Freddie Mac Home Possible and Home Possible Advantage
https://new.mi.genworth.com/
Freddie Mac Postsettlement Delivery Fees
30Freddie Mac Home Possible and Home Possible Advantage
Freddie Mac Postsettlement Delivery Fees
31Freddie Mac Home Possible and Home Possible Advantage
VS
Home Possible 95% vs Standard 95% Both with Credit Score of 680
Freddie Mac Mortgage Insurance Coverages
Standard95% LTV- 30% Coverage
– $180. monthly MI
– NO Option to originate 97%
32
Home Possible95% LTV- 25% Coverage
– $156.66 monthly MI
95.01-97% LTV- 25% Coverage
– $191.66 monthly MI
Freddie Mac Home Possible and Home Possible Advantage
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-Genworth Mortgage Insurance pricing
1 unit
Owner Occupied
Purchase
Primary Residence
Fixed Rate
Non-manufactured property
Credit score of 680
Loan amount is $200,000
Monthly BPMI
Standard Program vs. Home Possible
33
95% LTV
$23.34 Monthly Savings
*$2,500 Savings
97% LTV
97% LTV Allowed!
$41.67 Monthly Savings @97% LTV
based on conventional requirements
*$3,000 Savings
Freddie Mac Home Possible and Home Possible Advantage
=Borrower Satisfaction More Referrals $$$$
*Fees typically acknowledged in a rate differential
34Freddie Mac Home Possible and Home Possible Advantage
Home Possible Marketing Materials
http://www.freddiemac.com/homepossible/
35Freddie Mac Home Possible and Home Possible Advantage
Home Possible Website
http://www.freddiemac.com/homepossible/
36Freddie Mac Home Possible and Home Possible Advantage
Affordable Seconds Checklist
http://www.freddiemac.com/singlefamily/purchasemarket/docs/affordable_seconds_guidelines_factsheet.pdf
37Freddie Mac Home Possible and Home Possible Advantage
Home Possible FAQs
http://www.freddiemac.com/homepossible/home_possible_faq.html
Genworth Underwriting Guidelines
38Freddie Mac Home Possible and Home Possible Advantage
Genworth Rate Express®
Freddie Mac Home Possible and Home Possible Advantage 39
Genworth Rate Express® -Reminder
Freddie Mac Home Possible and Home Possible Advantage 40
LOS Connections
Freddie Mac Home Possible and Home Possible Advantage 41
Freddie Mac Home Possible and Home Possible Advantage 42
Training Tools and Information
Training Tools and Information
Freddie Mac Home Possible and Home Possible Advantage 4343
44Freddie Mac Home Possible and Home Possible Advantage
Additional MI Site Information
45Freddie Mac Home Possible and Home Possible Advantage
ActionCenter®: 800 444.5664 Your Local Genworth Regional
Underwriter Your Genworth Sales
Representative
Your Genworth Resources
46Freddie Mac Home Possible and Home Possible Advantage
Legal Disclaimer Genworth Mortgage Insurance is happy to provide you with these training materials. While we strive for accuracy, wealso 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 WITHOUTLIMITATION 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 ® and Desktop Underwriter® or DU® are registered trademarks of Fannie MaeLoan Product Advisor®, Home Possible®, Home Possible Advantage®, Loan Collateral Advisor® and Home Value Explorer® (HVE®) are registered trademarks 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