Wholesale ALERT – Appraisal Waiver Update for Conventional Investment and FNMA/FHLMC Second Home & Investment, Freddie Mac Guideline Update

Wholesale ALERT – Appraisal Waiver Update for Conventional Investment and FNMA/FHLMC Second Home & Investment, Freddie Mac Guideline Update

Appraisal Valuation Requirements

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

Conventional Investment and FNMA/FHLMC Second Home & Investment
Appraisal Waiver Valuation Requirements	Fannie Mae Property Inspection Waiver (PIW) and Freddie Mac Automated Collateral Evaluation (ACE) are permitted with an AVM or CDA when the AUS issues an appraisal waiver.	Fannie Mae Property Inspection Waiver (PIW) and Freddie Mac Automated Collateral Evaluation (ACE) are permitted with an AVM when the AUS issues an appraisal waiver, refer to the Appraisal Valuation Requirements. If a PIW or ACE is utilized (with or without a Property Data Report), an AVM must also be ordered. The AVM must not be more than 10% below the appraised value on the AUS findings. If the AVM is more than 10% below the appraised value on the AUS findings, an appraisal is required, and the collateral waterfall must be followed for the appraisal.

Conventional Investment and FNMA/FHLMC Second Home & Investment

Topic

Previous Guideline

New Guideline

Appraisal Waiver Valuation Requirements

Fannie Mae Property Inspection Waiver (PIW) and Freddie Mac Automated Collateral Evaluation (ACE) are permitted with an AVM or CDA when the AUS issues an appraisal waiver.

Fannie Mae Property Inspection Waiver (PIW) and Freddie Mac Automated Collateral Evaluation (ACE) are permitted with an AVM when the AUS issues an appraisal waiver, refer to the Appraisal Valuation Requirements.

If a PIW or ACE is utilized (with or without a Property Data Report), an AVM must also be ordered. The AVM must not be more than 10% below the appraised value on the AUS findings. If the AVM is more than 10% below the appraised value on the AUS findings, an appraisal is required, and the collateral waterfall must be followed for the appraisal.

Freddie Mac – Guideline Update

Effective immediately and for all loans in the pipeline following Freddie Mac guidelines, Arc Home will align with the change communicated by Freddie Mac in Bulletin 2023-11 for the topic below.

· Internal Revenue Service (IRS) Installment Agreements: Added detailed documentation and qualification requirements related to the payment of past-due federal taxes. Refer to Freddie Mac Selling Guide 5401.2 for complete details.