April 19, 2017
CA 2017-04 - Freddie Mac Bulletin 2017-3 - Collateral Representation and Warranty Relief and Appraisal Requirement Updates and Freddie Mac Bulletin 2017-2 - Selling Updates

The following is Arch Mortgage Insurance Company’s (Arch MI) position on the topics covered in Freddie Mac Bulletins 2017-03 and 2017-02.

Freddie Mac Bulletin 2017-3

Collateral Representation and Warranty Relief

Arch MI will not grant rescission relief for value, condition or marketability under either the Arch MI or United Guaranty Master Policies when Freddie Mac grants collateral representation and warranty relief for certain mortgage loans processed through its Loan Advisor Suite® (Loan Product Advisor® and Loan Collateral Advisor®).

Appraisal Requirement Updates

Arch MI will align with all the appraisal requirement updates addressed in Bulletin 2017-3.

Freddie Mac Bulletin 2017-2

Loan Product Advisor Enhancements

No Borrower on the Mortgage Has a Credit Score:

Arch MI will align with Freddie Mac requirements for loans underwritten with Loan Product Advisor for which no borrower on the mortgage has a credit score with the following restrictions:

Not All Borrowers on the Mortgage Have Usable Credit Scores:

Arch MI will align with Freddie Mac requirements for loans underwritten with Loan Product Advisor for which not all borrowers on the mortgage have usable credit scores with the following restrictions:

Second Home and Investment Property Mortgages:

Arch MI will align with all second home and investment property requirement updates addressed in Bulletin 2017-2.

Arch MI Underwriting Manual Update:

No changes are required to the Arch MI Underwriting Manual (the Manual) due to the updates announced in Freddie Mac Bulletin 2017-3.

As a result of Freddie Mac Bulletin 2017-2, changes will be made to the Manual to reflect the Arch MI credit policy position. Those changes will occur during our next update to the Manual. Until that time, you may underwrite to the information communicated in this Credit Risk Bulletin.

© 2017 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company, United Guaranty Residential Insurance Company and United Guaranty Mortgage Indemnity Company. Coverage is available through admitted company only. Loan Advisor Suite, Loan Product Advisor and Loan Collateral Advisor are registered marks of Freddie Mac.

CA 2017-04

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