AWACSMortgage compliance intelligence from Flightline

Briefings

Weekly briefing, November 2, 2026

Updates published to for Conventional, FHA. Built from published records only.

Action required, new this week

Required changes published this week.

Arc Home, Correspondent Announcement Final Closure of Former Custodial Site Address for Collateral (2026-10-29),
Action required

Collateral Shipping Address Update Following Maryland Custodial Site Closure

Loan impactAll programsDeliveryPost-closingSecondary

Applies to: All transactions delivered to the investor that require physical collateral transmittal.

What to review: Review collateral shipping procedures to ensure all physical packages are routed to the U.S. Bank repository in St. Paul, Minnesota beginning November 1, 2026. AWACS interpretation

Effective Nov 1, 2026View affected requirements →
Arc Home, Correspondent Announcement Uniform Appraisal Dataset 3.6 Format Update (2026-10-29),
Action required

Arc Home to accept UAD 3.6 appraisals and require them for its GSE products

Loan impactConventionalAppraisalDeliveryUnderwritingSecondary

Applies to: Arc Home Fannie Mae, Freddie Mac and GSE cash-out product loans need UAD 3.6 appraisals from November 2, 2026; all other programs may use either format, and sellers with an accepted GSE exception may temporarily stay on 2.6.

What to review: First, review your Arc Home Fannie Mae, Freddie Mac and GSE cash-out pipeline so those loans have UAD 3.6 appraisals from November 2, 2026; note that Arc Home accepts UAD 3.6 on all loans from October 28, 2026, other programs may use either format until further notice, and sellers with an Arc Home-accepted GSE exception may keep using UAD 2.6 for a limited time. AWACS interpretation

Effective Staggered, Oct 28, 2026 to Nov 2, 2026View affected requirements →
FHLB Chicago MPF, MPF Announcement 2026-71,
Action required

Disaster Foreclosure Approval Timelines for MPF Traditional Servicing

Loan impactAll programsServicing

Applies to: Mortgages serviced under MPF Traditional secured by properties situated in disaster areas.

What to review: Review servicing procedures immediately to ensure prior approval requests and supplemental documentation for disaster-damaged properties adhere to the mandatory submission deadlines. AWACS interpretation

Effective In effectView affected requirements →

Coming into effect in the next 60 days

Effective dates from .

Arc Home to accept UAD 3.6 appraisals and require them for its GSE products
Arc Home, UAD 3.6 requirement for GSE products. In 0 days.
Temporary policy exception for lenders unable to meet the UAD 3.6 November 2, 2026 mandate
Fannie Mae, UAD 3.6 mandate and temporary policy exception start. In 0 days.
Temporary UAD 2.6 policy exception for approved Sellers under the UAD 3.6 mandate
Freddie Mac, UAD 3.6 mandate and start of UAD 2.6 policy exception. In 0 days.
Conventional Loan-Level Price Adjustment Grid Revisions
Pennymac Correspondent, best efforts commitments for conventional mortgages. In 1 days.
Revisions to Conventional and Non-Agency Loan-Level Price Adjustments
Pennymac Correspondent, Best-efforts commitments for conventional and non-QM offerings. In 2 days.
Testing and Format Requirements for Escrow Event Reporting Under MPF Xtra
FHLB Chicago MPF, Mandatory escrow event reporting via Excel or JSON files. In 29 days.
MPF Xtra Escrow Event Reporting Format and Transmission Requirements
FHLB Chicago MPF, Escrow event reporting. In 29 days.
Newrez adopts Fannie Mae SEL 2026-09 with an overlay limiting employment verification methods
Newrez Correspondent, Verbal VOE for minority-owner K-1 income. In 30 days.
Freddie Mac Policy Alignment on Asset Repayment Retirement and New Accumulated Asset Rules
Pennymac Correspondent, Delivery cutoff for legacy asset repayment loans. In 32 days.
Freddie Mac Servicing Updates: Daily Reporting, Condo Flood Insurance, Default Legal Firm Screening and Others
Freddie Mac, Condo master flood insurance, >25% commercial space. In 34 days.
Newrez response to Freddie Mac Bulletin 2026-13: manufactured home leasehold overlay removed
Newrez Correspondent, Condo project master flood insurance. In 34 days.
Freddie Mac Policy Alignment on Asset Repayment Retirement and New Accumulated Asset Rules
Pennymac Correspondent, Final purchase date for legacy asset repayment loans. In 59 days.

Review recommended

New guidance, clarifications, flexibilities, overlays and insurer positions.

Pennymac Correspondent, Investor Announcement 26-131,
Review recommended

Conventional Loan-Level Price Adjustment Grid Revisions

Loan impactConventionalDeliveryProductsSecondary

Applies to: Conventional mortgages delivered under best efforts commitments.

What to review: Review the revised occupancy fee values and restructured Fannie Mae and Freddie Mac adjustment tables applicable to conventional best efforts commitments beginning November 3, 2026. AWACS interpretation

Effective Nov 3, 2026View affected requirements →
Arc Home, Correspondent Announcement Reminder: Illinois Anti-Predatory Lending Database Requirements (2026-10-29),
Review recommended

Reminder of Illinois Anti-Predatory Lending Database entry requirements for licensed correspondent sellers

Loan impactLicensingCompliance

Applies to: Illinois loan applications delivered to Arc Home by licensed correspondent sellers, covering all property types, second liens and investment or business-purpose loans.

What to review: Compliance should check that its Illinois process enters every covered loan application in the Illinois Anti-Predatory Lending Database within 10 days of application, including second liens and investment or business-purpose loans; this reminder states no new mandatory change, and only entities exempt from Illinois RMLA licensing are exempt from entry. AWACS interpretation

Arc Home, Delegated Correspondent Announcement Texas 50(a)6 for Closed End Second Loans (2026-10-29),
Review recommended

Arc Home opens its Closed-End Second product to Texas delegated loans, including 50(a)(6)

Loan impactProperty eligibilityProductsUnderwritingCompliance

Applies to: Closed-End Second loans on Texas properties that delegated correspondents register on or after October 26, 2026, including Texas 50(a)(6) transactions.

What to review: Nothing here is mandatory, but delegated correspondents may now deliver Arc Home's Closed-End Second product on Texas properties, including Texas 50(a)(6) home equity loans, for loans registered on or after October 26, 2026, so first review whether to offer it and how you will meet Texas 50(a)(6) requirements where they apply. AWACS interpretation

Effective Oct 26, 2026View affected requirements →
Pennymac Correspondent, Announcement 26-130,
Review recommended

Revisions to Jumbo and Non-QM Loan-Level Price Adjustments

Loan impactJumboNon-QMDeliverySecondary

Applies to: Proprietary Jumbo and Non-QM loans committed under best efforts terms on or after October 30, 2026.

What to review: Review the revised pricing grids for Non-QM prepayment penalty price caps and Jumbo occupancy adjustments effective for best efforts commitments on or after October 30, 2026. AWACS interpretation

Effective Oct 30, 2026View affected requirements →

Threads that moved

Topics more than one source has acted on, with a new update this week.

  • UAD 3.6 appraisal dataset: GSE mandate dates, temporary UAD 2.6 exceptions and mortgage insurer acceptance
    Fannie MaeLenders unable to implement UAD 3.6 by Nov. 2, 2026 must request a temporary policy exception to keep submitting UAD 2.6 reports, which are accepted with UAD 3.6 through May 19, 2027, with reduced functionality from March 1, 2027, and UAD 3.6 is required for new submissions from May 20, 2027.
    Fannie MaeAnnounced Selling Guide updates on MH Advantage/CHOICEHome alignment, gift donors and credit score clarifications; the summary and effective dates given contain nothing specific to UAD 3.6.
    Fannie MaeHighest and best use requirements for UAD 3.6 appraisals apply immediately, alongside rental income restructuring for applications on or after Dec. 1, 2026 and NACLI expansion.
    Freddie MacSellers must submit initial appraisal reports using UAD 3.6 from May 20, 2027 and all reports from June 28, 2027; approved Sellers may keep submitting UAD 2.6 temporarily, with reduced functionality from March 1, 2027, and must commit to a final UAD 3.6 implementation plan.
    National MINational MI will accept the new UAD 3.6 appraisal forms and defers to the GSEs on appraisal review requirements, with a May 3, 2027 date listed for the GSE retirement of UAD 2.6 and existing forms.
  • AI and Machine Learning Governance Framework under Fannie Mae LL-2026-04
    Fannie MaeFannie Mae requires seller/servicers using artificial intelligence and machine learning to maintain governance policies, comply with resiliency standards, oversee third-party technology, and disclose usage details upon request, effective August 6, 2026.
    FHLB Chicago MPFFHLB Chicago MPF adopted Fannie Mae's AI and machine learning governance framework for MPF Xtra origination and servicing, effective August 6, 2026.
    FHLB Chicago MPFFHLB Chicago MPF announced that Fannie Mae superseded its AI guidance with the Information Security and Business Resiliency Supplement and directed MPF Xtra participants using super intelligence to follow existing guides, agreements, and laws.

Enforcement this week

Regulator actions against lenders and servicers published this week. Shown whatever your coverage.

Data releases

Data releases and announcements with no direct requirement.