AWACSMortgage compliance intelligence from Flightline

Arc Home · Correspondent Announcement New Delegated Correspondent HELOC Second Mortgage Product (2026-05-04) · Published

Delegated Correspondent HELOC Second Lien Financing Option

Arc Home has introduced a second-lien home equity line of credit option for delegated correspondent clients. The manually underwritten program features terms up to 30 years and allows draw periods of three or five years.

Review recommendedEffective Apr 28, 2026Checks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

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

Applies when all of these are true
  • ANDArchome loan with a manual underwriting
  • ANDCash-out refinance or no cash-out refinance
  • ANDCredit score of at least 640
  • ANDLTV of at most 80
Addressed to
Arc Home correspondent sellersFrom the publisher, not quoted from the text
Investor
ArchomeFrom the publisher, not quoted from the text
Programs
manual underwriting only
Loan purpose
Cash-out refinance; no cash-out refinance
Occupancy
Investment property, primary residence, second home
Affected areas
Eligibility; Products
Effective
Apr 28, 2026
Applicability confidence
Needs review: some rows could not be matched to a quote from the source

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
RequirementPreviouslyNow
Second lien home equity line of credit availabilityRelaxedNot statedA second-mortgage home equity line of credit is open for registration.

What to do

AWACS interpretation · not source language

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.

QC implications

  • Quality control should verify that sampled delegated second-lien HELOC registrations adhere to the 80 percent maximum loan-to-value ratio, 640 minimum credit score, and 50 percent maximum debt-to-income ratio requirements.
  • Quality control should confirm that manual underwriting on eligible second-lien HELOC files adheres to applicable Fannie Mae standards.

Source and record

Version 1 · archived

Checks

  • 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, adjusted automatically

    Anything marked required is backed by the requirement language and dates in the source.

    • An independent check could not confirm which way a change moves a rule; it is not marked as required

  • 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.