Loan impact
From the announcement text · needs review- Investor
- Fannie MaeFrom the publisher, not quoted from the text
- Programs
- ConventionalFrom the publisher, not quoted from the text
- Exceptions
- Verbal VOE not required when rental income is the only income reported on Schedule K-1
- Effective
- Applications dated on or after Dec 2, 2026
- Applicability confidence
- Needs review: some rows could not be matched to a quote from the source
Supporting quotes from the announcement
- exceptions“A verbal verification of employment is not required when rental income is the only income reported o n Schedule K-1.”
What changed
From the announcement text · Sections B3-3.4-19, B3-3.1-01, B3-3.1-04, C2-2-06, B3-3.3-03, B7-2-05, B3-3.4-03| Requirement | Previously | Now |
|---|---|---|
| Verbal VOE for Schedule K-1 <25% ownership incomeNewRequiredSection B3-3.4-19 | Not stated | Lenders must complete a verbal VOE when borrowers qualify using K-1 income from a business with <25% ownership; not required when K-1 reports only rental income |
| Income continuance measurement dateChangedSection B3-3.1-01 | Not stated | Income with a defined expiration date expected to continue at least three years from the application date |
| Verbal VOE methodsRelaxedSection B3-3.1-04 | Previously: Specific verbal VOE methods prescribed | Any reasonable, verifiable method appropriate to the employment or income type; timing unchanged |
| Seller wire transfer instructions submissionChangedSection C2-2-06 | Not stated | Self-service digital application replaces manual PDF-based Form 482 submission |
| Form 360 Certificate of AuthorityRemovedSection C2-2-06 | Not stated | Form 360 retired; manual signature verification and callback no longer required |
| Evidence of acceptance of employment offer or contractRelaxedSection B3-3.3-03 | Not stated | Acceptance may be shown by signed agreement, written confirmation (e.g., email) or other verifiable means |
| Tenant right of first refusalClarifiedSection B7-2-05 | Not stated | Statutory or ordinance-based tenant ROFR does not make a loan ineligible; recorded ROFRs remain subject to existing rules |
| Annuity, pension and retirement income starting after closingClarifiedSection B3-3.4-03 | Not stated | Additional documentation guidance when income begins after closing but before first payment |
What to do
AWACS interpretation · not source languageWhat to review: Start with the new requirement to complete a verbal VOE for borrowers who qualify with Schedule K-1 income from a business they own less than 25% of. It applies to applications dated on or after December 2, 2026 and does not apply when the K-1 reports only rental income. Then look at the optional changes that take effect immediately: lenders may use any reasonable, verifiable verbal VOE method, measure income continuance from the application date, show acceptance of an employment offer by email or other verifiable means, treat a tenant right of first refusal that comes from a statute or local ordinance as not making a loan ineligible, and submit wire instructions through the new self-service application that replaces the PDF Form 482 process and retires Form 360.
For loan applications dated on or after December 2, 2026, complete a verbal verification of employment whenever a borrower qualifies with Schedule K-1 income from a business they own less than 25% of, unless rental income is the only income reported on the Schedule K-1.
QC implications
- Sample loans with applications dated on or after December 2, 2026 that use Schedule K-1 income from a business owned less than 25% by the borrower, and confirm a verbal verification of employment was completed.
- Check that the exception was only used where rental income was the only income reported on the Schedule K-1.
- Where lenders choose their own verbal VOE method, test that the method was reasonable, verifiable and suited to the borrower's employment or income type, and that the existing timing requirements were still met.
- For income with a defined expiration date, check that continuance of at least three years was measured from the application date under the updated policy.
- Where acceptance of an employment offer or contract was shown by written confirmation or other verifiable means rather than a signed agreement, confirm the offer or contract was fully executed and non-contingent.
Source and record
Version 1 · archivedChecks
Source verified: Passed
The document ID, link and publication date match the official source.
Quotes match the source: Passed, adjusted automatically
Every quoted passage appears word for word in the official document.
- A detail the source does not support was removed or adjusted
Requirements backed by the source: Passed, adjusted automatically
Anything marked required is backed by the requirement language and dates in the source.
- An independent check could not confirm which loans a change applies to; those conditions were removed
- An independent check could not confirm a requirement; it is shown as review, not action
- An independent check could not confirm a detail; it was downgraded, never upgraded
In scope: Passed
The document is about residential mortgage lending.
Format and labels: Passed, adjusted automatically
The record follows the AWACS format and uses its standard labels.
- A detail the source does not support was removed or adjusted
Source
- Selling Guide Announcement SEL-2026-09 (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 dec174e3e71a…
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