ALERT – Updates for Fannie Mae and Freddie Mac Guidelines

Fannie Mae

Effective immediately for all Fannie Mae loans, Arc Home will align with the changes communicated in Fannie Mae Announcement SEL-2024-01 for the topics below.

·         Value Acceptance + Property Data for Condos: Expansion to indicate that condominium units are now eligible for value acceptance + property data, when offered by the Desktop Underwriter (DU) casefile. The condo project must not be “Ineligible” in Condo Project Manager (CPM). Refer to Fannie Mae Selling Guide B4-1.4-11 for requirements.

·         Use of Business Income: Clarified several income calculation and documentation requirements for borrowers using business income to qualify. Refer to Fannie Mae Selling Guide B3-3.1-09, Selling Guide B3-3.3-07, Selling Guide B3-3.4-01, and Selling Guide B3-3.4-02 for details.

 

Freddie Mac

Effective immediately for all Freddie Mac loans, Arc Home will align with the changes communicated by Freddie Mac in Bulletin 2024-1 for the topic below.

·         Asset Documentation: Updated requirements for direct account verifications to align with the third-party asset verification requirements more closely. Refer to Freddie Mac Selling Guide 5501.3 for complete details.

 

Effective for Freddie Mac loans with a submission to Loan Product Advisor (LPA) on or after February 19, 2024, Arc Home will align with the changes communicated in Freddie Mac Bulletin 2024-1 for the topic below.

·         Automated Collateral Evaluation (ACE): Updated guidelines to allow ACE appraisal waivers for certain cash-out refinance mortgages. Refer to Freddie Mac Selling Guide 5602.3 for details.