Effective immediately, July 21, 2025, Arc Home LLC is revising the eligibility on prepayment penalties for mortgage loans originated in New Jersey. Specifically, unless the borrower is a C-Corporation or S-Corp, prepayment penalties are not permitted on investment property loans.

Loans locked before July 21, 2025, with a prepayment penalty will retain their current pricing, including the prepayment adjustment. Re-locks and extensions will not be permitted for these loans after that date.

After the results of a recent compliance assessment and, following legal consultation and interpretation of guidance from the New Jersey Department of Banking & Insurance, it has been determined that Individuals, LLCs, LPs, and Trusts are governed by N.J.S.A. 46:10B-2, which restricts the imposition of prepayment penalties on these borrower types.