The guidelines for Access Non-QM, Edge Non-QM, Foreign National DSCR, and Elite QM were updated within several topics.
Please review the Arc Guideline Update Summary for a side-by-side comparison of the guideline revisions and policy effective dates, which is available HERE. As a reminder, this summary document is intended to highlight the guideline updates only; please refer to the Arc Underwriting Guide and product matrices for the complete Access, Edge, Elite and Foreign National program guidelines.
The updated matrices and Arc Underwriting Guide will be published on the website soon (HERE).
AUS Credit Requirements
The matrices for all products that require a Fannie Mae Desktop Underwriter (DU) “Approve” or Freddie Mac Loan Product Advisor (LPA) “Accept” finding have been updated as indicated in the table below. The requirement is effective for new Fannie Mae Desktop Underwriter (DU) submissions dated on or after August 19, 2024, and all Freddie Mac Loan Product Advisor (LPA) submissions dated on or after August 4, 2024. This update applies to Fannie Mae, Freddie Mac, Conventional Investment, FNMA/FHLMC Second Home & Investment, FHA, USDA, and VA loan programs; the revised matrices and overlay documents will be available on the Arc Home website (HERE) soon.
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Fannie Mae DU & Freddie Mac LPA – Credit |
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Previous Guideline |
New Guideline |
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Credit Report Requirements |
A tri-merged in file credit report from all three repositories is required for all loans. |
A tri-merged in file credit report from all three repositories is required for all loans. The credit report must include trended credit data. |
Conventional Overlays
The Arc Home overlays for all Fannie Mae and Freddie Mac programs have been updated as indicated below, effective for loan submissions on or after August 19, 2024. The revised Conventional Overlays and updated matrices will be available on the Arc Home website (HERE) soon.
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Conventional Overlays |
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Topic |
Previous Guideline |
New Guideline |
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Written Verification of Employment (WVOE) |
When a borrower is using a Written Verification of Employment (WVOE) to verify income and the WVOE is not completed by a third-party, a copy of the most recent paystub is required. |
When a borrower is using a Written Verification of Employment (WVOE) to verify income and the WVOE is not completed by a third-party, the file must also include proof of income received prior to the application that supports the income reflected on the WVOE. |
Tax Transcript Policy
The Arc Home Tax Transcript Requirements Policy was updated as indicated below. The change is effective immediately. The revised Arc Home Tax Transcript Requirements Policy will be available on our website (HERE) soon.
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Topic |
Previous Guideline |
New Guideline |
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Additional Requirements |
The underwriter may request additional information such as a business license, profit and loss statement and/or balance sheet if it is necessary to further support the determination of the borrower’s income stability. |
The underwriter may request additional information such as a business license, profit and loss statement and/or balance sheet if it is necessary to further support the determination of the borrower’s income stability or if required by the product guidelines. |