Loan impact
Summarized from the announcement · verifiedApplies to: Closed-end second mortgages registered with Arc Home on or after June 2, 2026.
- Addressed to
- Arc Home correspondent sellersFrom the publisher, not quoted from the text
- Investor
- ArchomeFrom the publisher, not quoted from the text
- Affected areas
- Score; General; Products; Eligibility
- Affected documents
- Junior lien product guidelines matrix
- Effective
- Jun 2, 2026
- Applicability confidence
- Verified: every row taken from the source text is supported by it; rows marked "from the publisher" are not quoted
Summary by AWACS. Arc Home's guide is proprietary, so AWACS does not reproduce its text. Read the official announcement ↗ (opens in a new tab)
What changed
Summarized from the announcement| Requirement | Previously | Now |
|---|---|---|
| Non-delegated correspondent access to junior liensRelaxed | Not stated | Non-delegated correspondent sellers are permitted to deliver closed-end second mortgages. |
| Alternative documentation options for income qualificationRelaxed | Not stated | Delegated and non-delegated junior liens can utilize one year of full documentation or 12 to 24 months of bank statements. |
| Credit score threshold for alternative documentationRelaxed | Not stated | Borrowers utilizing alternative documentation methods may qualify with credit scores down to 660. |
| Ineligible property list alignmentClarified | Not stated | The ineligible property roster for second mortgages has been harmonized with the main underwriting guidelines. |
What to do
AWACS interpretation · not source languageWhat 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.
QC implications
- Sample junior lien files using alternative documentation to verify credit scores meet the 660 minimum threshold along with proper one-year full doc or 12 to 24 months of bank statements.
- Confirm that properties securing closed-end second mortgages adhere to the updated ineligible property roster.
Source and record
Version 1 · archivedChecks
Source verified: Passed
The document ID, link and publication date match the official source.
Quotes match the source: Passed
Every quoted passage appears word for word in the official document.
Requirements backed by the source: Passed
Anything marked required is backed by the requirement language and dates in the source.
In scope: Passed
The document is about residential mortgage lending.
Format and labels: Passed
The record follows the AWACS format and uses its standard labels.
Source
- Correspondent Announcement Closed End Second Mortgage Product Expansion (2026-06-03) (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 95a361a7c86d…
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