Arc Home Correspondent ALERT – EXPANDED Out of State DSCR for Arc Access Non-QM!

Arc Home is excited to announce an expansion to the Out of State Debt Service Coverage Ratio (DSCR) licensing within our Arc Access Non-QM program, effective for loans registered on or after October 20, 2023. The new states now eligible for this origination option are highlighted in the table. This is available to Delegated and Non-Delegated Correspondent Clients who meet Arc Home requirements for the program.

Arc Home will allow Correspondents, and the Loan Officers authorized to represent those Correspondents, to originate DSCR (business purpose) loans for properties located in the Permitted States* without an NMLS license for those states, provided that the Correspondent and Loan Officer are currently approved and active in at least one other state (as reflected in NMLS).

For example, a Correspondent and representative Loan Officer licensed in California and approved by Arc Home may originate a DSCR loan in Florida (without an NMLS license in Florida) when the Correspondent and Loan Officer are currently approved and active in at least one other state (per NMLS).

Important Notes

·         Licensing for all Correspondents approved by Arc Home for Non-QM origination has been updated to allow Out of State DSCR loan submissions in the Permitted States*. If you are not yet approved by Arc Home for Non-QM business, partner with your Arc Home Account Executive to update your eligible programs today.

·         The process for submitting DSCR loans to Arc Home via the SPARC portal remains unchanged. Refer to the Correspondent Training page for important SPARC training videos and job aids. As a reminder, the Delegated Correspondent Initial Submission Checklist and Non-Delegated Correspondent Initial Submission Checklist, as applicable, 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.