AWACSMortgage compliance intelligence from Flightline

Arc Home · Correspondent Announcement Non-Delegated Pre-Payment Penalty Restrictions (2026-06-03) · Published

Prepayment Penalty Guidelines Clarification for Non-Delegated Channel

Arc Home clarified that recent adjustments to prepayment penalty state limits apply exclusively to delegated transactions. Non-delegated originators must continue adhering to existing rules in the underwriting handbook without any modifications.

Review recommendedAll checks passedRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · verified

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

Addressed to
Arc Home correspondent sellersFrom the publisher, not quoted from the text
Investor
ArchomeFrom the publisher, not quoted from the text
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 to do

AWACS interpretation · not source language

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.

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

    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.