AWACSMortgage compliance intelligence from Flightline

National MI · National MI Announcement UW 2026-01 · Published

National MI TrueGuide updates: 2-unit manufactured homes, occupancy timing, new overlay summary

For primary residence loans, borrowers must occupy the property within 60 days of closing and continue occupancy for one year. National MI also expanded AUS Affordable Lending eligibility to 2-unit manufactured homes and added a summary of overlays to GSE requirements (Section 2.2.1).

Action requiredIn effect nowAll checks passedRead the announcement ↗ (opens in a new tab)

Loan impact

From the announcement text · verified

Applies to: National MI-insured primary residence loans (occupancy timing); 2-unit manufactured homes on AUS Affordable loans and the overlay summary are additional non-mandatory changes.

Applies when all of these are true
  • ANDNational mi loan
  • ANDOccupancy is primary
Investor
National mi
Programs
Conventional
Occupancy
Primary residence
Affected areas
Eligibility; Eligibility; ManufacturedGuide Section 2.2.8
Applicability confidence
Verified: every row above is supported by the source text
Supporting quotes from the announcement
  • occupancy“Revised guidelines to require that for primary residence loans, borrowers must occupy the property as their primary residence within 60 days of closing and occupancy must continue for one year.”
  • conditions“Revised guidelines to require that for primary residence loans, borrowers must occupy the property as their primary residence within 60 days of closing and occupancy must continue for one year.”
  • affected areas“Revised guidelines to require that for primary residence loans, borrowers must occupy the property as their primary residence within 60 days of closing and occupancy must continue for one year.”
  • affected areas“Expanded eligibility for loans originated in accordance with Section 2.3.3 (AUS Affordable Lending) to include 2-Unit manufactured home properties originated in accordance with GSE requirements.”
  • guide sections“Expanded eligibility for loans originated in accordance with Section 2.3.3 (AUS Affordable Lending) to include 2-Unit manufactured home properties originated in accordance with GSE requirements.”
  • guide sections“A new section (2.2.1) has been added to the guide to improve understanding of National MI’s underwriting guideline overlays applicable to GSE Approve/Accept Eligible loans and to direct readers to where they can find additional details.”

What changed

From the announcement text · Sections 2.2.8; 3.3.2, 2.3.3, 2.2.1
RequirementPreviouslyNow
Primary residence occupancy timingTightenedRequiredSection 2.2.8; 3.3.2Not statedBorrowers must occupy the property as primary residence within 60 days of closing and continue occupancy for one year
Applies when: All loan-impact conditions above
2-unit manufactured homes eligible on AUS Affordable loansRelaxedSection 2.3.3Not statedEligibility expanded to include 2-unit manufactured home properties originated per GSE requirements
Applies when: Type is manufactured · Units is 2
New summary of overlays to GSE requirementsClarifiedSection 2.2.1Not statedNew section 2.2.1 summarizes National MI overlays applicable to GSE Approve/Accept Eligible loans

Also affected: Sections 2.2.8, 3.3.2.

What to do

AWACS interpretation · not source language

What to review: First review the mandatory, immediately effective change that primary residence borrowers must occupy within 60 days of closing and continue occupancy for one year, then note that the lender may use the expanded AUS Affordable eligibility for 2-unit manufactured homes and the new overlay summary in Section 2.2.1, neither of which is required.

Underwriting

For National MI-insured primary residence loans, apply the requirement that the borrower occupy the property as their primary residence within 60 days of closing and continue occupancy for one year, effective immediately.

QC implications

  • Test National MI-insured primary residence loans for evidence that the file reflects the requirement to occupy within 60 days of closing and continue occupancy for one year.
  • Confirm the occupancy timing requirement is applied only to primary residence loans and not to other occupancy types.
  • Where a 2-unit manufactured home is submitted as an AUS Affordable loan under GSE requirements, check that eligibility was based on the expanded Section 2.3.3 allowance, which is optional for the lender to use.

Source and record

Version 1 · archived

Checks passed

  • Schema valid
  • Effective quotes verbatim
  • Document ID appears in the source
  • Doc id matches catalog
  • Mandatory status is backed by requirement language
  • Mandatory entries have requirement language
  • Published on present
  • Title summary length
  • Controlled vocabulary
  • No placeholder tokens
  • Source link resolves
  • Loan impact quotes verbatim
  • Loan impact vocabulary
  • Changes quoted
  • Impact type consistent
  • Every required change is backed by obligation language
  • Only new or tightened changes are marked required
  • Loan impact covers every required change
  • Quotes are complete sentences
  • Unflagged must
  • Diff complete
  • Mandatory date resolved
  • Audience verbatim
  • Scope residential
  • Out of scope
  • Published in window
  • Interpretation schema valid
  • Interpretation separate