Loan impact
Summarized from the announcement · verifiedApplies to: Closed-end second lien transactions submitted through delegated or non-delegated correspondent channels.
- Addressed to
- Arc Home correspondent sellersFrom the publisher, not quoted from the text
- Investor
- ArchomeFrom the publisher, not quoted from the text
- Occupancy
- Investment property, primary residence, second home
- Affected areas
- General; Products
- Affected documents
- Income documentation
- 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 |
|---|---|---|
| Documentation options for closed-end second liensRelaxed | Not stated | Alternative income documentation is permitted in addition to full documentation. |
| Maximum loan amount for closed-end second mortgagesClarified | New requirement | Eligible closed-end second lien loan amounts are capped at $500,000. |
| Maximum CLTV on primary residencesClarified | New requirement | Closed-end second liens secured by primary residences allow a maximum CLTV of 80%. |
What to do
AWACS interpretation · not source languageWhat 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.
QC implications
- Sample closed-end second lien files using alternative documentation to verify compliance with program standards.
- Verify that closed-end second lien loan amounts do not exceed $500,000 and that CLTV does not exceed 80% on primary residences.
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, adjusted automatically
Every quoted passage appears word for word in the official document.
- A detail the source does not support was removed or adjusted
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 (2026-06-29) (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 5b1de2f05ae1…
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