Wholesale ALERT – Appraisal Valuation Clarification for Conventional Investment and FNMA/FHLMC Second Home & Investment

Wholesale ALERT – Appraisal Valuation Clarification for Conventional Investment and FNMA/FHLMC Second Home & Investment

 

Effective immediately and for all loans in the pipeline, the Arc Home Appraisal Valuation Requirements policy was clarified for the Conventional 30 Year Fixed Rate Investment Property and FNMA/FHLMC 30 Year Fixed Rate Second Home & Investment programs, as noted in red below. The revised Arc Home Appraisal Valuation Requirements policy will be published on the website soon.

 

Conventional Investment and FNMA/FHLMC Second Home & Investment

Topic

Previous Guideline

New Guideline

Appraisal Waterfall

All appraisals must include a successful Submission Summary Report (SSR). Note: The Fannie Mae Collateral Underwriter (CU) score is required.

All appraisals must include a successful Submission Summary Report (SSR). Note: The Fannie Mae Collateral Underwriter (CU) score is required. On FNMA/FHLMC Second Home & Investment and Conventional Investment products, if FHLMC Loan Product Advisor (LPA) is utilized to approve the loan and it provides a Loan Collateral Advisor (LCA) score or states “no score” within the LPA findings, then the Freddie Mac LCA score must be used for the appraisal waterfall. Otherwise, only the Fannie Mae Collateral Underwriter (CU) SSR score may be in the file. Only one SSR score (either the Fannie Mae CU OR Freddie Mac LCA) may be in the loan file.