Loan impact
Summarized from the bulletin · needs reviewApplies to: Lenders selling government loans with buydowns, state housing finance agency mortgages, or non-agency jumbo financing.
Scope differs by change; see each change below.
- Addressed to
- Lakeview correspondent sellersFrom the publisher, not quoted from the text
- Investor
- LakeviewFrom the publisher, not quoted from the text
- Programs
- Conventional, FHA, Jumbo, VA
- Affected areas
- Report format; Valuation; EligibilityGuide Section A541
- Affected documents
- Promissory note; Appraisal report
- Exceptions
- Non-note closing documents for state housing agency transactions may utilize remote online notarization.
- Effective
- Sep 9, 2026
- Applicability confidence
- Needs review: some rows could not be matched to a quote from the source
Summary by AWACS. Lakeview Correspondent's guide is proprietary, so AWACS does not reproduce its text. Read the official announcement ↗ (opens in a new tab)
What changed
Summarized from the bulletin · Sections B406, LHC Government Matrix| Requirement | Previously | Now |
|---|---|---|
| Buydown restriction on specified government high balance loansTightenedRequired | Not stated | Buydowns are not permitted on designated FHA and VA high balance product numbers. |
| Promissory note delivery format for state housing agency loansTightenedRequiredSection B406 | Not stated | State housing agency loans must be delivered with wet-signed paper notes rather than electronic notes. |
| Appraisal review requirements for non-agency jumbo loansTightenedRequired | Not stated | Appraisal desk or field reviews are required based on loan loan-to-value and valuation review results. |
| Manual underwriting eligibility for Louisiana housing bond loansRelaxedSection LHC Government Matrix | Not stated | Manual underwriting is permitted for state housing finance agency FHA bond transactions. |
| Applies when: State is LA | ||
| Collateral reporting terminology alignment with redesigned appraisal specificationsClarified | Not stated | Seller guide appraisal language is updated to support modern uniform appraisal datasets and the redesigned report. |
Also affected: Section A541.
What to do
AWACS interpretation · not source languageWhat to review: Review immediate restrictions eliminating buydowns on specified government high-balance loans and mandating wet-signed paper notes for state housing agency deliveries, followed by collateral review requirements for non-agency jumbo loans.
Cease approving buydowns on designated FHA and VA high-balance product numbers immediately, and require appraisal desk or field reviews on non-agency jumbo transactions based on loan-to-value and valuation review findings effective 2026-09-09.
Require wet-signed paper promissory notes rather than electronic notes for state housing agency transactions immediately.
Deliver wet-signed paper notes rather than electronic notes on all state housing agency loans immediately.
Immediately restrict product offerings to exclude buydowns on designated FHA and VA high-balance product numbers.
QC implications
- Test state housing agency deliveries to confirm that wet-signed paper notes are provided instead of electronic notes.
- Audit designated FHA and VA high-balance loans to verify that no buydown options are present.
- Review non-agency jumbo loans to ensure that required appraisal desk or field reviews are conducted in accordance with loan-to-value and valuation review results.
- Sample Louisiana Housing Corporation bond files utilizing manual underwriting to confirm adherence to the state housing government matrix.
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
Every quoted passage appears word for word in the official document.
Requirements backed by the source: Passed, adjusted automatically
Anything marked required is backed by the requirement language and dates in the source.
- A detail the source does not support was removed or adjusted
- An independent check could not confirm which loans a change applies to; those conditions were removed
- An independent check could not confirm which way a change moves a rule; it is not marked as required
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
- Correspondent Credit Policy Bulletin C2026-24 (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 e5ea5de563aa…
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