Effective immediately for all Freddie Mac loans, Arc Home will align with the changes communicated by Freddie Mac in Bulletin 2024-1 for the topic below.
· Asset Documentation: Updated requirements for direct account verifications to align with the third-party asset verification requirements more closely. Refer to Freddie Mac Selling Guide 5501.3 for complete details.
Effective for Freddie Mac loans registered on or after March 11, 2024, Arc Home will align with the changes communicated in Freddie Mac Bulletin 2024-1 for the topic below.
· Trust Income Requirements: Updated guidelines to require a one-year history of trust income receipt, and to specify that a trustee letter is not acceptable when the borrower is the trustee. Refer to Freddie Mac Selling Guide 5305.2 for details.
Transferred Appraisal Policy
The Arc Home Transferred Appraisal Policy was updated as indicated below; the changes are effective for loans registered on or after March 11, 2024. The revised Arc Home Transferred Appraisal Policy will be available on our website soon – you will find Wholesale HERE and Non-Delegated Correspondent HERE.
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Transferred Appraisal Documentation |
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Previous Guideline |
New Guideline |
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A copy of the appraiser’s invoice showing no balance due.
For Access, Edge, Elite, Foreign National, Conventional Investment Property and FNMA/FHLMC Second Home & Investment Property products, the appraisal must be accompanied by an Appraisal Transfer Letter releasing the appraisal to Arc Home or the Correspondent Lender. · The letter must be on the transferring Lender’s letterhead with current date, borrower’s name, and property address. · The letter must be signed by an officer or senior manager of the transferring Lender. Loan officers, LO assistants, producing sales managers, etc. are not eligible to sign the transfer letter. · Transferring Lender must certify and warrant that they have adopted and complied with the Interagency Appraisal and Evaluation Guidelines which address the Appraisal Independence requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Truth in Lending regulations and all applicable laws and the appraisal was ordered and prepared in compliance with those requirements. · The letter must confirm that the transferred appraisal is the only appraisal order on this property by the lender. |
A copy of the appraiser’s invoice showing no balance due or proof that the appraisal has been paid at closing.
For Access, Edge, Elite, Foreign National, Conventional Investment Property and FNMA/FHLMC Second Home & Investment Property products, the appraisal must be accompanied by an Appraisal Transfer Letter releasing the appraisal to Arc Home or the Correspondent Lender. · The letter must be on the transferring Lender’s letterhead with current date, borrower’s name, and property address. · The letter must be signed by an officer or manager of the transferring Lender. Producing staff such as loan officers, LO assistants, producing sales managers, etc. are not eligible to sign the transfer letter. · Transferring Lender must certify and warrant that they have adopted and complied with the Interagency Appraisal and Evaluation Guidelines which address the Appraisal Independence requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Truth in Lending regulations and all applicable laws and the appraisal was ordered and prepared in compliance with those requirements. (A separate Appraisal Independence Requirement Certification is acceptable.) · The letter must confirm that the transferred appraisal is the only appraisal order on this property by the lender. |