Underwriting Guideline and Overlay Matrix Updates
Effective immediately, the following is required for transactions that received and accepted an appraisal waiver:
- DU Approve/Eligible loans with an Appraisal Waiver must be locked in a Fannie Mae/Freddie Mac product code
- LPA loans with an Automated Collateral Evaluation (ACE) must be locked in a Freddie Mac Eligible product code
As previously announced in Announcement 2020-105 Freddie Mac No Cash-out Refinance Incidental Cash-out Allowance dated October 28, 2020, the applicable Product Profiles have been updated to reflect this change.
In addition, the overlay matrix will be updated to reflect that Hybrid Appraisals are not permitted.