Arc Home announcements 2026: summaries and effective dates

Applies to: Loans secured by real estate situated within declared Texas disaster counties across correspondent and wholesale channels.

What to review: Review the mandatory disaster inspection requirements for DR-4935 in Texas, focusing on exterior reinspections for appraisals completed prior to August 5, 2026, interior reinspection triggers upon damage detection, and inspection timing rules for appraisal waiver and streamline loans. AWACS interpretation

Applies to: Applies to conventional agency loan programs delivered to the investor.

What to review: Review the mandatory requirement to deliver appraisals in the modernized 3.6 format for conventional agency offerings effective 2026-11-02, along with the continued allowance to submit either 2.6 or 3.6 formats for non-agency loans. AWACS interpretation

Applies to: All transactions delivered to the investor that require physical collateral transmittal.

What to review: Review collateral shipping procedures to ensure all physical packages are routed to the U.S. Bank repository in St. Paul, Minnesota beginning November 1, 2026. AWACS interpretation

Applies to: Illinois loan applications delivered to Arc Home by licensed correspondent sellers, covering all property types, second liens and investment or business-purpose loans.

What to review: Compliance should check that its Illinois process enters every covered loan application in the Illinois Anti-Predatory Lending Database within 10 days of application, including second liens and investment or business-purpose loans; this reminder states no new mandatory change, and only entities exempt from Illinois RMLA licensing are exempt from entry. AWACS interpretation

Applies to: Closed-End Second loans on Texas properties that delegated correspondents register on or after October 26, 2026, including Texas 50(a)(6) transactions.

What to review: Nothing here is mandatory, but delegated correspondents may now deliver Arc Home's Closed-End Second product on Texas properties, including Texas 50(a)(6) home equity loans, for loans registered on or after October 26, 2026, so first review whether to offer it and how you will meet Texas 50(a)(6) requirements where they apply. AWACS interpretation

Applies to: Arc Home Fannie Mae, Freddie Mac and GSE cash-out product loans need UAD 3.6 appraisals from November 2, 2026; all other programs may use either format, and sellers with an accepted GSE exception may temporarily stay on 2.6.

What to review: First, review your Arc Home Fannie Mae, Freddie Mac and GSE cash-out pipeline so those loans have UAD 3.6 appraisals from November 2, 2026; note that Arc Home accepts UAD 3.6 on all loans from October 28, 2026, other programs may use either format until further notice, and sellers with an Arc Home-accepted GSE exception may keep using UAD 2.6 for a limited time. AWACS interpretation

Applies to: All correspondent loans delivered to the investor, excluding Marquee Jumbo products from extension fee increases.

What to review: Review the adjusted daily rate extension and suspense pricing of three basis points per day effective 2026-10-12, taking into account the exception for Marquee Jumbo products. AWACS interpretation

Applies to: All new and pipeline wholesale transactions, except Marquee Jumbo mortgages.

What to review: Review the updated daily wholesale lock extension fee of 4 basis points per calendar day taking effect on October 12, 2026, noting the exception for Marquee Jumbo loans. AWACS interpretation

Applies to: Access, Edge and closed-end second loans qualified with one year of full-doc tax returns.

What to review: First, review your clear-to-close workflow for Access, Edge and closed-end second loans qualified with one year of full-doc tax returns. Starting immediately, the signed 4506-C and latest-year IRS transcripts must be in hand before clear to close. Then read the notice's condo, Texas mineral-rights, AVM provider and no-SSR valuation updates. The guidance on valuations without an SSR or CU score is dated 2026-11-02 and is not marked mandatory. AWACS interpretation

Applies to: Edge Alt Income loans utilizing CPA profit and loss statements, alongside DSCR and closed-end second mortgage offerings.

What to review: Review the mandatory CPA profit and loss underwriting limits for Edge Alt Income loans effective 2026-09-03 first, followed by the expanded state eligibility guidelines for DSCR and closed-end second mortgages. AWACS interpretation

Applies to: Delegated correspondent Clean Slate full and alternative documentation loans.

What to review: Review the mandatory reduction of the maximum debt-to-income ratio ceiling from 55 percent to 50 percent for delegated Clean Slate full and alternative documentation loans. AWACS interpretation

Applies to: Loans secured by properties located in declared disaster areas of Louisiana.

What to review: Review the mandatory disaster inspection requirements for properties in declared Louisiana parishes, focusing first on required exterior re-inspections for appraisals completed before June 19, 2026, interior inspections when damage is detected, and inspection date rules for streamline refinances and appraisal waivers. AWACS interpretation

Applies to: Loans secured by properties in the West Virginia counties of Lewis, Pleasants, Ritchie, and Upshur.

What to review: Review the mandatory disaster inspection requirements and inspection timing rules for loans secured by properties in the declared West Virginia counties. AWACS interpretation

Applies to: All loans sold to the investor requiring collateral shipment to the document custodian.

What to review: Review shipping procedures and systems to ensure physical collateral files are routed to the new Minnesota custodian facility starting August 3, 2026. AWACS interpretation

Applies to: Delegated HELOCs and closed-end second mortgages registered on or after August 1, 2026.

What to review: Review fee schedules to account for the funding fee adjustment to $450 for delegated HELOCs and closed-end second liens registered on or after August 1, 2026. AWACS interpretation

Applies to: All loans sold to Arc Home requiring collateral delivery to US Bank.

What to review: Review shipping instructions and update delivery records to ensure US Bank collateral packages are routed to the St. Paul, Minnesota facility starting August 3, 2026. AWACS interpretation

What to review: Review disaster reinspection requirements for Michigan properties, focusing first on mandatory exterior inspections with photos for appraisals completed prior to April 22, 2026, interior inspection triggers for damaged properties, and inspection timing rules for appraisal waivers and streamline refinances. AWACS interpretation

Applies to: All mortgage loans secured by properties located in designated disaster counties in Louisiana, Mississippi, and Wisconsin.

What to review: Review the specific appraisal cutoff dates and reinspection requirements for declared disaster counties in Louisiana, Mississippi, and Wisconsin before closing or funding affected loans. AWACS interpretation

Applies to: Second-lien mortgage loans submitted by wholesale brokers.

What to review: Review the terms of the new wholesale closed-end second mortgage program that becomes available for loan registrations starting July 2, 2026. AWACS interpretation

Applies to: This update applies to newly registered Arc Home Access Clean Slate DSCR mortgage loans.

What to review: Review the updated product availability schedule allowing Access Clean Slate DSCR registrations starting July 1, 2026. AWACS interpretation

Applies to: All mortgages sold to the investor requiring delivery of physical collateral documents.

What to review: Review delivery instructions and shipping processes to ensure all physical collateral packages sent on or after August 3, 2026, are directed to the new Minnesota custodian facility. AWACS interpretation

Applies to: Closed-end second lien transactions submitted through delegated or non-delegated correspondent channels.

What to review: Review the availability of alternative income documentation alongside full documentation for closed-end second mortgages, including the $500,000 maximum loan amount and the 80% maximum CLTV for primary residences. AWACS interpretation

Applies to: Conventional conforming mortgages evaluated under Freddie Mac Home Possible income rules and FHA streamline refinance transactions.

What to review: Review the automated underwriting implementation of 2026 Freddie Mac area median income limits and the restated FHA streamline refinance mortgage insurance premium schedules. AWACS interpretation

Applies to: Closed-end second mortgages registered with Arc Home on or after June 2, 2026.

What to review: Review the expanded junior lien guidelines allowing non-delegated correspondent delivery, alternative income documentation choices down to a 660 credit score, and the aligned ineligible property roster. AWACS interpretation

Applies to: Loans delivered through the non-delegated correspondent channel.

What to review: Review the clarification confirming that recent prepayment penalty state limit adjustments apply solely to delegated originations and that non-delegated loans must continue adhering to existing underwriting handbook guidelines. AWACS interpretation

Applies to: All loans requiring personal guarantees purchased by the investor on or after May 8, 2026.

What to review: Review collateral packaging procedures to ensure original physical personal guarantees with wet signatures are shipped to the custodian for applicable loans purchased on or after May 8, 2026. AWACS interpretation

Applies to: Second-lien home equity lines of credit underwritten manually for delegated correspondent lenders.

What to review: Review the product guidelines and eligibility criteria for offering the new delegated correspondent second-lien home equity line of credit financing option. AWACS interpretation