ALERT – Updates for Fannie Mae and Freddie Mac

Effective for all Fannie Mae loan applications dated on or after November 1, 2023, Arc Home will align with the change communicated by Fannie Mae in Announcement SEL-2023-08 for the topic below.

·         Trust Income: Updated the Continuity of Income calculation when trust funds are used for down payment, closing costs, or reserves; revised guidelines to differentiate between variable and fixed trust payments; added a requirement for employment-related assets placed into a trust within 12 months of the application date. Refer to Fannie Mae Selling Guide B3-3.1-01 and B3-3.1-09 for complete details.

Effective for all Freddie Mac loans registered on or after October 30, 2023, Arc Home will align with the change communicated in Freddie Mac Bulletin 2023-18 for the topic below.

·         Student Loan Payments: Added requirements for student loans in income-driven repayment plans where documentation indicates the income must be recertified and/or the payment will increase prior to or on the Note Date. Refer to Freddie Mac Selling Guide Section 5401.2 for details.