Wholesale ALERT – Arc Access NQM & Arc Elite QM Guideline Updates, Transferred Appraisal Policy Revision

Wholesale ALERT – Arc Access NQM & Arc Elite QM Guideline Updates, Transferred Appraisal Policy Revision

 

Arc Access Non-QM & Arc Elite QM Guidelines

Arc Home is excited to announce guideline updates for Arc Access Non-QM and Arc Elite QM, effective for loans registered on or after May 1, 2023.

 

Please review the Access NQM & Elite QM Update Summary for a side-by-side comparison of the Access and Elite guideline revisions. The summary is available HERE. As a reminder, this summary document is intended to highlight the guideline updates only; please refer to the Arc Selling Guide and product matrices for complete Arc Access and Arc Elite program guidelines.

 

The updated program matrices will be published on the website soon – you will find Arc Access HERE and Arc Elite HERE. The revised Arc Selling Guide for Access and Elite is available within the SPARC portal (HERE).

 

Transferred Appraisal Update

Effective for loans registered on or after May 1, 2023, the Appraisal Transfer Letter requirements were revised for the Arc Access, Arc Elite, Conventional Investment Property, and FNMA/FHLMC Second Home & Investment Property programs, as noted below. The updated Arc Home Transferred Appraisal policy will be available on our website (HERE) soon.

 

Arc Access, Arc Elite, Conventional Investment, and FNMA/FHLMC Second Home & Investment

Topic

Previous Guideline

New Guideline

Transferred Appraisal Letter

Appraisal must be accompanied by an Appraisal Transfer Letter releasing the appraisal to Arc Home or the Correspondent Lender.

·    The letter must be on the transferring Lender’s letterhead with current date, borrower’s name, and property address.

·    The letter must be signed by an officer or manager of the transferring Lender that is not in Origination or Production.

·    Transferring Lender must certify and warrant that they have adopted and complied with the Interagency Appraisal and Evaluation Guidelines which address the Appraisal Independence requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Truth In Lending regulations and all applicable laws and the appraisal was ordered and prepared in compliance with those requirements.

·    The letter must confirm that that the transferred appraisal is the only appraisal order on this property by the lender.

Appraisal must be accompanied by an Appraisal Transfer Letter releasing the appraisal to Arc Home or the Correspondent Lender.

·    The letter must be on the transferring Lender’s letterhead with current date, borrower’s name, and property address.

·    The letter must be signed by an officer or senior manager of the transferring Lender. Loan Officers, LO assistants, producing sales managers, etc. are not eligible to sign the transfer letter.

·    Transferring Lender must certify and warrant that they have adopted and complied with the Interagency Appraisal and Evaluation Guidelines which address the Appraisal Independence requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Truth In Lending regulations and all applicable laws and the appraisal was ordered and prepared in compliance with those requirements.

·    The letter must confirm that that the transferred appraisal is the only appraisal order on this property by the lender.

 

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