The following updates apply to Wholesale and Correspondent loan submissions.

Effective immediately for all Fannie Mae loans, Arc Home will align with the changes communicated in Fannie Mae Announcement SEL-2024-03 for the topic below.

·         Trust Income: Revised guidelines to require documentation that clearly identifies the date the trust was created, expand the acceptable trust verification documents, specify requirements for trust income eligibility when a trust is established less than 12 months, clarify trust income eligibility when qualifying via Employment-Related Assets as Qualifying Income, and provide additional guidance related to variable trust income. Refer to Fannie Mae Selling Guide B3-3.1-09 for details.

Effective immediately for all Freddie Mac loans, Arc Home will align with the changes communicated by Freddie Mac in Bulletin 2024-6 for the topics below.

·         Attorney Opinion of Title Letters: Expanded the permitted use of an attorney opinion of title letter and provided additional clarification regarding the attorney opinion of title letter and attorney requirements. Refer to Freddie Mac Selling Guide 4702.1 and Selling Guide 4702.3 and for complete details.

·         Credit Report Inquiries: Updated guidelines to require all credit reports generate an inquiry that will be identified on subsequent credit reports (i.e., must be a hard pull). Refer to Freddie Mac Selling Guide 5203.1 for details.

·         Reserve Requirement for Concurrent Mortgage Applications: Clarified guidelines to specify that when multiple Freddie Mac mortgage applications are being processed for the same borrower, the same assets may be used to meet the reserve requirements for each transaction. Refer to Freddie Mac Selling Guide 5501.2 for details.