Arc Home Wholesale ALERT – Disclosure Enhancement for Arc Access Non-QM DSCR!

Arc Home is excited to announce an enhancement to the Debt Service Coverage Ratio (DSCR) loan disclosure requirements within our Arc Access Non-QM program, effective for loans registered on or after July 28, 2023.

The Arc Home document requirements have been updated to utilize a Good Faith Estimate (GFE) at initial disclosure and HUD-1 Settlement Statement with an Itemization of Amount Financed at the time of loan closing. Because Debt Service Coverage Ratio (DSCR) business purpose transactions are not subject to the TILA-RESPA Integrated Disclosures (TRID) requirements, this exciting improvement will allow these loans to close even faster.

Important Notes

·         To accommodate this disclosure enhancement, the initial disclosures MUST be completed by Arc Home for every DSCR transaction.

§   Within the Order Disclosures screen of SPARC 2.0, click the “Order Initial Loan Estimate” button.

§   When the SPARC messaging indicates that Arc Home is required to complete the disclosures for the transaction, click on the “Request Lender to Complete Order” button and the Arc Home disclosures team will complete the process.

§   As a reminder, please upload a complete fee sheet for the transaction in the Upload/View Documents screen of SPARC 2.0.

·         The process for submitting DSCR loans to Arc Home via the SPARC portal remains unchanged. Refer to the new Wholesale Training page for important SPARC 2.0 job aids.

·         There are no changes to the Arc Access Debt Service Coverage Ratio (DSCR) guidelines and eligibility requirements.