Wholesale ALERT – Updates to Appraisal Valuation Requirements and Access, Elite & Foreign National Guidelines

Wholesale ALERT – Updates to Appraisal Valuation Requirements and Access, Elite & Foreign National Guidelines

Access, Elite & Foreign National – Guideline Updates

The Arc Underwriting Guide for Access Non-QM, Elite QM and Foreign National was updated within many various topics. The changes are effective for loan registrations on or after December 4, 2023.

Please review the Arc Guideline Update Summary for a side-by-side comparison of the guideline revisions, which is available HERE. 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 the complete Access, Elite and Foreign National program guidelines.

The updated program matrices will be published on the website soon – you will find Access and Foreign National HERE, and Elite HERE. The revised Arc Underwriting Guide is available within the SPARC portal HERE.

Appraisal Valuation Requirements

Effective for loan registrations on or after December 4, 2023, the Arc Home Appraisal Valuation Requirements policy was updated as noted below. The revised Arc Home Appraisal Valuation Requirements policy will be published on the website soon.

Appraisal Valuation Requirements
Automated Valuation Model (AVM)	· Conventional Investment Property · FNMA/FHLMC Second Home & Investment Property	If a PIW/ACE (with or without a PDR) is utilized, an AVM must also be ordered and must not be more than 10% below the appraised value utilized on the AUS findings. If the AVM is more than 10% below the appraised value, then an appraisal is required, and the collateral waterfall must be followed. The AVM must be ordered from one of these approved vendors: · Clear Capital · Freddie Mac Home Value Explorer (HVE) · Veros	If a PIW/ACE (with or without a PDR) is utilized, an AVM must also be ordered. The AVM must have a minimum Forecast Standard Deviation Score (FSD) per the below list AND the value must not be more than 10% below the appraised value utilized on the AUS findings. If the AVM is more than 10% below the appraised value, then an appraisal is required, and the collateral waterfall must be followed. The AVM must be ordered from one of these approved vendors: · Clear Capital – FSD < 0.13 · Freddie Mac Home Value Explorer (HVE) – High confidence level · Veros/Vero Value – FSD < 0.16

Appraisal Valuation Requirements

Topic

Products

Previous Guideline

New Guideline

Automated Valuation Model (AVM)

· Conventional Investment Property

· FNMA/FHLMC Second Home & Investment Property

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

The AVM must be ordered from one of these approved vendors:

· Clear Capital

· Freddie Mac Home Value Explorer (HVE)

· Veros

If a PIW/ACE (with or without a PDR) is utilized, an AVM must also be ordered. The AVM must have a minimum Forecast Standard Deviation Score (FSD) per the below list AND the value must not be more than 10% below the appraised value utilized on the AUS findings. If the AVM is more than 10% below the appraised value, then an appraisal is required, and the collateral waterfall must be followed.

The AVM must be ordered from one of these approved vendors:

· Clear Capital – FSD < 0.13

· Freddie Mac Home Value Explorer (HVE) – High confidence level

· Veros/Vero Value – FSD < 0.16