Wholesale ALERT – Guideline Updates for Fannie Mae, FHA, and Jumbo Prime

Wholesale ALERT – Guideline Updates for Fannie Mae, FHA, and Jumbo Prime

 

Fannie Mae

Effective immediately for all Fannie Mae loans, Arc Home will align with the change communicated by Fannie Mae in Announcement SEL-2023-07 for the topic below.

·         Military Addresses for Credit Reports: Clarified requirements related to obtaining a credit report compatible with Desktop Underwriter (DU) for borrowers with an APO, FPO or DPO military address. Refer to Fannie Mae Selling Guide B3-5.2-01 for details.

 

FHA

Arc Home will align with the FHA guideline update announced in the Handbook 4000.1 Transmittal for the topic noted below. The complete FHA Single Family Housing Policy Handbook 4000.1 is available HERE on the HUD website.

·         Foreign Income: Added a new section to define and address requirements for this type of Effective Income (4000.1 Sections II.A.4.c.xii(R) and II.A.5.b.xii(R))

 

Jumbo Prime

Effective for ALL Jumbo Prime 7yr/6mo and 10yr/6mo ARM loans, the qualifying rate has been updated as indicated below. The revised Jumbo Prime product matrices and guidelines will be available on our website soon (HERE).

 

Jumbo Prime-1 and Jumbo Prime-2

Topic

Previous Guideline

New Guideline

Qualifying Rate – 7yr/6mo and 10yr/6mo ARM

7yr/6mo and 10yr/6mo ARM products must be qualified at the higher of the Note Rate or fully indexed rate.

7yr/6mo and 10yr/6mo ARM products must be qualified at the Note Rate.