Arc Home Wholesale ALERT – EXPANDED Out of State DSCR & Commercial Broker DSCR for Arc Access Non-QM!

Arc Home is excited to announce an expansion to the Out of State and Commercial Broker licensing within our Arc Access Non-QM Debt Service Coverage Ratio (DSCR) program, effective for loans registered on or after October 27, 2023. The new states now eligible for these origination options are highlighted in the table. Please refer to the topics below for key details related to the Arc Home Broker approval requirements, as applicable for your licensing.

Commercial Broker DSCR

Arc Home will allow non-NMLS licensed Brokers, and the Agents authorized to represent those Brokers, to originate DSCR (business purpose) loans for properties located in the Permitted States*, provided that the Broker and Agent are approved by Arc Home.

Important Notes

·         State law requires a current Real Estate Broker License for the Commercial Broker and representative Agent submitting DSCR transactions located in the states specified in the table above. Prior to submitting a DSCR loan for properties in these states, partner with your Arc Home Account Executive to update your licensing on file.

·         To apply for the Commercial Broker DSCR program with Arc Home, visit the Become a Partner page (HERE) to download the required application documentation. Complete and submit the Commercial Broker Application and Commercial Broker Agreement, as well as the W-9, Corporate Resolution Form, and Broker Compensation Selection Form to get started!

Out of State DSCR

Arc Home will allow Brokers, and the Loan Officers authorized to represent those Brokers, to originate DSCR (business purpose) loans for properties located in the Permitted States* without an NMLS license for those states, provided that the Broker and Loan Officer are currently approved and active in at least one other state (as reflected in NMLS). For the states identified in the table above, a current Real Estate Broker License must be validated and approved by Arc Home for the representative Agent originating DSCR loans on properties located in those states.

Important Notes

·         Prior to submitting a DSCR loan for properties located in the states that require Real Estate Broker License validation and approval (see table and footnote above), partner with your Arc Home Account Executive to update your licensing on file.

·         Brokers and representative Loan Officers must have an NMLS license to originate DSCR transactions in all states not listed in the table.

·         If you are not yet approved by Arc Home for Non-QM business, partner with your Arc Home Account Executive to update your available programs today.

The process for submitting DSCR loans to Arc Home via the SPARC portal remains unchanged. Refer to the Wholesale Training page for important SPARC 2.0 job aids. As a reminder, a fully completed Wholesale Initial Submission Form is required.

The revised Arc Access DSCR program matrix will be available on our website soon (HERE). Additionally, the Arc Selling Guide for Access and Elite is available within the SPARC portal (HERE). Please contact your Arc Home Account Executive with any questions.