Wholesale ALERT – Updates for Appraisal Valuation Requirements, Conventional Overlays, Tax Transcript Policy, Access NQM & Elite QM Guidelines

Wholesale ALERT – Updates for Appraisal Valuation Requirements, Conventional Overlays, Tax Transcript Policy, Access NQM & Elite QM Guidelines

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
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. On FNMA/FHLMC Second Home & Investment and Conventional Investment products, if Freddie Mac 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.	All appraisals must include a successful Submission Summary Report (SSR). The Fannie Mae Collateral Underwriter (CU) score is required. Only the Collateral Underwriter (CU) score may be in the loan file, regardless of which AUS is used to score the loan.

Arc Access Non-QM & Arc Elite QM – Guideline Updates

Effective immediately and for all loans in the pipeline, the Arc Access Non-QM and Arc Elite QM guidelines were updated for the following topics:

· Citizenship

· Power of Attorney – Cash-Out Refinance

· Rapid Acquisition

· Marijuana Related Business (MRB) – Assets and Income

· Reverse 1031 Exchange

· Interested Third-Party Contributions (IPCs)

Please review the Access NQM & Elite QM Update Summary for a side-by-side comparison of the Access and Elite guideline revisions noted, which will be available HERE soon. As a reminder, this summary document is intended to highlight the guideline updates only; please refer to the Arc Selling Guide and product matrices for complete Arc Access and Arc Elite program guidelines.

The revised Arc Selling Guide for Access and Elite is available within the SPARC portal (HERE).

Conventional Overlays

Effective immediately and for all loans in the pipeline, the Arc Home Conventional Overlays were modified to address the following topics:

· Non-Permanent Resident Alien VISA requirements

· Reverse 1031 Exchange is prohibited

The updated Conventional Overlays will be published on our website (HERE) soon.

Tax Transcripts

The Arc Home Tax Transcript Requirements Policy was updated to add clarifying content related to business tax returns, which is effective immediately and for all loans in the pipeline. The revised Arc Home Tax Transcript Requirements Policy will be available on our website (HERE) soon.