Loan impact
Summarized from the announcement · verifiedApplies to: Access, Edge and closed-end second loans qualified with one year of full-doc tax returns.
- Addressed to
- Arc Home correspondent sellers and wholesale brokersFrom the publisher, not quoted from the text
- Investor
- ArchomeFrom the publisher, not quoted from the text
- Affected area
- General
- Affected documents
- IRS tax transcripts; Signed Form 4506-C
- Effective
- Nov 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 · Sections Alt-income and second-lien product matrices, Arc Home Valuation: AVM requirements, Arc Underwriting Guide 5.4.2, Arc Underwriting Guide 5.1| Requirement | Previously | Now |
|---|---|---|
| Timing of 4506-C and IRS transcripts for one-year full-doc alt incomeTightenedRequiredSection Alt-income and second-lien product matrices | Previously: Could be obtained during processing or at closing | Signed 4506-C and latest-year IRS transcripts required before clear to close |
| Allowable AVM providersTightenedRequiredSection Arc Home Valuation: AVM requirements | Previously: Homegenius Real Estate / Red Bell Real Estate AVMs were allowed with an FSD below 0.17 | Homegenius Real Estate / Red Bell Real Estate AVMs removed from the allowable AVM provider list; the other providers and their FSD thresholds are unchanged |
| Condo single-entity ownership limitsChangedSection Arc Underwriting Guide 5.4.2 | Previously: A single entity could own 4 units in projects of 10 to 20 units; warrantable limit 2 units for 5 to 20 unit projects | A single entity may own 4 units in projects of 11 to 20 units; warrantable limit 2 units for 11 to 20 unit projects (limits for projects of 21 or more units unchanged) |
| Texas mineral and drilling rightsRelaxedSection Arc Underwriting Guide 5.1 | Previously: No exceptions for mineral or drilling rights on any Texas property | The no-exception rule for mineral or drilling rights now applies only to rural properties in Texas |
What to do
AWACS interpretation · not source languageWhat 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.
Starting immediately, for Access, Edge and closed-end second loans qualified with one year of full-doc tax returns, obtain the signed 4506-C and the latest-year IRS transcripts before issuing clear to close.
Starting immediately, for Access, Edge and closed-end second loans qualified with one year of full-doc tax returns, stop treating closing as the point to collect the signed 4506-C and latest-year IRS transcripts, because they must already be obtained before clear to close.
QC implications
- Sample Access, Edge and closed-end second loans qualified with one year of full-doc tax returns and confirm the signed 4506-C and latest-year IRS transcripts were obtained before the clear-to-close date.
- Flag any loan in this group where the 4506-C or transcripts were obtained at or after closing instead of before clear to close.
Source and record
Version 2 · 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 Underwriting Guide and Guideline Updates (2026-10-09) (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 70349f303ca6…
- Report an error · How versions work
Version history
- Version 2 (current)Recorded
- Version 1Recorded