Wholesale ALERT – Updates to Tax Transcript Policy, Transferred Appraisal Policy, Access NQM & Elite QM Guidelines
Arc Access Non-QM & Arc Elite QM – Guideline Updates
Arc Home is excited to announce guideline updates for the Arc Access Non-QM and Arc Elite QM programs. Unless otherwise indicated in the Access NQM & Elite QM Update Summary, the changes are effective immediately.
Please review the Access NQM & Elite QM Update Summary for the change effective dates and a side-by-side comparison of the Access and Elite guideline revisions, which will be available HERE soon. 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).
Tax Transcript Policy
The Arc Home Tax Transcript Requirements Policy was reformatted for clarity and updated as indicated below. These changes are effective immediately. The revised Arc Home Tax Transcript Requirements Policy will be available on our website (HERE) soon.
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Tax Transcript Requirements |
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Products |
Previous Guideline |
New Guideline |
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· Fannie Mae · Freddie Mac · FHA · VA · Conventional Investment Property · FNMA/FHLMC Second Home & Investment Property |
IRS Tax or W-2 transcripts are required prior to closing: · At the underwriter’s discretion if needed to address red flags; and · When the most recent tax returns have not been filed. |
IRS Tax or W-2 transcripts are required prior to closing: · When there is a relationship between the employer and borrower; and · At the underwriter’s discretion if needed to address red flags; and · When the most recent tax returns have not been filed. |
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· Arc Access Non-QM · Arc Elite QM |
IRS or third-party tax transcripts must be obtained. W-2 transcripts may be used in lieu of 1040 tax transcripts for wage earners. |
IRS or third-party tax transcripts must be obtained for any income types that require tax returns. Transcripts are not required for wage earners. |
Transferred Appraisal Policy
The Arc Home Transferred Appraisal Policy was updated as indicated below. This change is effective immediately. The revised Arc Home Transferred Appraisal Policy will be available on our website (HERE) soon.
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Transferred Appraisal Requirements |
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Products |
Previous Guideline |
New Guideline |
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· Arc Access Non-QM · Arc Elite QM · Conventional Investment Property · FNMA/FHLMC Second Home & Investment Property |
The Transfer Letter must confirm that the transferred appraisal is the only appraisal order on this property by the lender. |
The Transfer Letter must confirm that the transferred appraisal is the only appraisal order on this property by the lender (except in cases where two appraisals are required due to the loan amount or HPML requirements). |