Updates / Newrez Correspondent
49 Newrez Correspondent changes tracked by AWACS, newest first. Each links to its summary, effective date, loan impact and the official document.
Applies to: Approved correspondent lenders offering government-insured three-year hybrid adjustable-rate mortgages.
What to review: Review the newly introduced optional three-year initial fixed period adjustable-rate mortgage program guidelines for eligible FHA and VA purchase and refinance transactions. AWACS interpretation
Applies to: The updated bankruptcy seasoning criteria apply to closed-end second mortgage transactions.
What to review: Review updated closed-end second mortgage guidelines permitting borrowers with a discharged Chapter 13 bankruptcy to qualify after two years instead of four, alongside clarifications on measuring four-year seasoning from discharge or dismissal dates for Chapter 7 and 11 filings and the ineligibility of borrowers with multiple bankruptcies. AWACS interpretation
Applies to: Freddie Mac loans sold to Newrez, especially manufactured homes on leasehold estates (now eligible) and investment property refinances using ACE or ACE + PDR.
What to review: Nothing in this announcement is mandatory, so first review the new flexibility: underwriting may now approve manufactured homes on leasehold estates and may use ACE or ACE + PDR on investment property refinances up to 75% LTV/TLTV for no cash-out and 60% for cash-out, while manufactured homes in shared equity programs stay ineligible. AWACS interpretation
Applies to: Fannie Mae loans sold to Newrez, where employment verification is limited to verbal, written or vendor methods; the restated Fannie Mae income and K-1 VOE updates also apply.
What to review: First, check that employment on Fannie Mae loans sold to Newrez, including DU loans, is now verified only verbally, in writing or through a vendor; then note that Newrez still does not accept attorney opinion letters, and review the restated Fannie Mae updates: the K-1 verbal VOE rule for applications from 2026-12-02, the dropped list of verbal VOE methods, three-year continuance measured from the application date, and the wider options for proving an accepted job offer and documenting new annuity or pension income, which lenders may use. AWACS interpretation
Applies to: GSE loans sold to Newrez whose appraisals use the legacy UAD 2.6 format; as a flexibility, FHA, Jumbo, Med Pro and Smart Series loans may now use UAD 3.6.
What to review: Review first which loans going to Newrez rely on UAD 2.6 appraisals, because Newrez will not buy them from March 1, 2027 through May 19, 2027 and lists February 28, 2027 as the last day it takes 2.6 reports; also note that you may now use UAD 3.6 appraisals for FHA, Jumbo, Med Pro and Smart Series loans. AWACS interpretation
What to review: Nothing in this announcement is mandatory, so start by reviewing the optional co-op expansion for new locks from 2026-10-15: you may now accept co-ops in DC, Middlesex and Union counties in NJ, and Montgomery and Prince George's counties in MD under Conforming, HomeReady, Home Possible, RefiNow and Refi Possible; Philadelphia County, PA is added for RefiNow and Refi Possible, but only for clients with approval; Cook County, IL is added for Refi Possible only; and restricted-area limits on Refi Possible co-ops no longer apply. AWACS interpretation
Applies to: Smart Series loans in the pipeline or applied for on or after October 8, 2026: SmartVest loans in Kansas and Minnesota may carry prepayment penalties, and SmartEdge Asset Qualifier loans do not need reserves.
What to review: This announcement has no mandatory changes, so lenders can first review two optional flexibilities for pipeline loans and applications dated on or after October 8, 2026: SmartVest loans on property in Kansas or Minnesota may now carry prepayment penalties, and SmartEdge Asset Qualifier loans no longer need reserves. AWACS interpretation
Applies to: Applies to HUD Section 184 loans that correspondents sell to Newrez.
What to review: First, review your HUD Section 184 pipeline meant for Newrez and find every loan that lacks a HUD cohort number or firm commitment, because Newrez will buy these loans only if HUD issued both before the note date (the record gives no effective date). AWACS interpretation
Applies to: Conventional loans sold to Newrez: properties once listed for sale, relocated manufactured homes on LPA loans from delegated clients, and second home or investment loans using VantageScore 4.0; the occupancy-intent letter is no longer needed.
What to review: Start with the three new Newrez conventional overlays (listed property off the market by disbursement, no relocated manufactured homes on delegated LPA loans, and no second home or investment loans using VantageScore 4.0), keeping in mind the record gives no effective date, and then note that lenders may stop collecting the borrower's written statement of intent to occupy a property that had been listed for sale. AWACS interpretation
Applies to: Government loans purchased by the investor, with mandatory overlay requirements focused on VA transactions.
What to review: Review the mandatory VA requirements to bring delinquent consumer accounts current with documented funds and pay off all court judgments and tax liens at or before closing. AWACS interpretation
Applies to: Smart Series loans currently in processing as well as new submissions received on or following the announcement date.
What to review: Underwriting teams should first review pipeline and newly submitted SmartVest purchase loans with financing above 80% LTV or CLTV to enforce the mandatory 5% minimum borrower contribution from personal funds. AWACS interpretation
Applies to: Mortgage loans submitted by delegated correspondent clients to Newrez for underwriting review.
What to review: Review the updated fee schedule regarding underwriting charges assessed on submitted delegated loans regardless of whether the mortgage is purchased, effective October 1, 2026. AWACS interpretation
Applies to: VA home loans delivered by approved correspondents utilizing VantageScore 4.0 credit scores.
What to review: Review the optional flexibility allowing correspondent lenders to deliver VA mortgage loans underwritten with the VantageScore 4.0 credit scoring model beginning September 21, 2026. AWACS interpretation
Applies to: Conventional conforming and high-balance primary residence loans delivered to Newrez using VantageScore 4.0.
What to review: Review the optional permission to deliver conventional conforming and high-balance primary residence mortgages underwritten with VantageScore 4.0. AWACS interpretation
Applies to: Conventional mortgages locked on or after September 15, 2026 under expanded loan amounts.
What to review: Review the expanded conventional conforming loan limits and the guidelines permitting delivery of loans with automated underwriting findings ineligible solely due to loan size when accompanied by a full appraisal. AWACS interpretation
Applies to: Non-conforming loans under the Yosemite Jumbo AUS program seeking to use transferred appraisal reports.
What to review: Review the optional flexibility permitting transferred appraisals dated less than 120 days before the note date on Yosemite Jumbo AUS mortgages locked on or after August 27, 2026. AWACS interpretation
Applies to: Loans originated for sale to Newrez under Fannie Mae guidelines, including condominium projects, cooperatives with ground leases, and electronic notes.
What to review: Review the flexibility permitting early exercised ground lease renewal options for co-ops and the associated documentation requirements, alongside delivery coding rules for condo limited reviews and trust restrictions on eNotes. AWACS interpretation
Applies to: All approved correspondent lenders delivering trailing loan documentation through the submission portal.
What to review: Review the registration process for the replacement document platform to ensure upload access is established prior to final document delivery. AWACS interpretation
Applies to: All approved correspondent lenders participating in annual recertification with Newrez.
What to review: Review annual recertification processes to ensure fraud prevention, detection, and reporting documentation is prepared for submission through Comergence effective August 1, 2026. AWACS interpretation
Applies to: FHA and VA loans delivered by correspondent sellers.
What to review: Review the newly added provisions for evaluating restricted stock and RSU income on VA loans, alongside the restriction permitting Mortgage Credit Certificates exclusively for delegated correspondent lenders on FHA and VA transactions. AWACS interpretation
Applies to: Conventional conforming mortgages delivered to Newrez.
What to review: Review the updated agency guideline flexibilities regarding large deposit sourcing, gifts from family-owned entities, and two- to four-unit appraisal floor plans, along with clarified requirements for condo critical repairs and CHOICEHomes appraisal comparables. AWACS interpretation
Applies to: Conforming conventional loans, VA loans, and USDA mortgages delivered to Newrez.
What to review: Review the updated overlay restrictions disqualifying multi-story and multi-unit manufactured housing, relocated VA manufactured homes, USDA intermediary cash-offer programs, and USDA principal curtailments over $500. AWACS interpretation
Applies to: Closed-end second-lien mortgages delivered through the Newrez correspondent channel.
What to review: Review immediately the mandatory rules requiring every signing borrower to hold title and barring co-signers on closed-end second liens, along with the corrected appraisal cross-reference in section 7A.2. AWACS interpretation
Applies to: Smart Series and Vest pipeline loans.
What to review: Review the retracted replacement reserve percentage increase for condo projects alongside clarifications regarding real estate owned disclosure and trade treaty spouse employment authorization rules. AWACS interpretation
Applies to: This product applies to primary residence mortgage financing originated for qualifying medical doctors and healthcare professionals.
What to review: Review the newly introduced program parameters allowing eligible medical professionals to obtain primary residence financing up to 100 percent loan-to-value without private mortgage insurance. AWACS interpretation
Applies to: FHA and VA adjustable-rate mortgage offerings sold through the correspondent channel.
What to review: Review the product summaries to understand the newly permitted 1.75% margin option for FHA and VA adjustable-rate mortgage offerings. AWACS interpretation
Applies to: FHA loans delivered to Newrez, including construction transactions and borrowers employed by family businesses.
What to review: Review pipeline loan files immediately for the ban on borrowers acting as general contractors on construction loans and the accountant-signed payroll ledger requirement for non-computer-generated paystubs, as well as the newly permitted Section 184 Indian reservation properties. AWACS interpretation
Applies to: Non-QM mortgages secured by properties located in declared disaster areas.
What to review: Review Non-QM disaster policy updates requiring an inspection report confirming zero damage and completion of all repairs before closing, as well as the allowance to use original appraisals completed during non-ongoing events. AWACS interpretation
Applies to: Conventional mortgage loans requiring mortgage insurance.
What to review: Review all pipeline files and new loan applications for conventional mortgages requiring mortgage insurance to ensure borrowers meet the new 600 minimum credit score requirement. AWACS interpretation
Applies to: Conventional conforming mortgage loans originated for delivery to Newrez by approved correspondent sellers.
What to review: Review immediately the new overlay prohibiting subsidized sales price loan-to-value calculations when foreclosure extinguishes resale covenants and the requirement to collect trust documentation before final underwriting endorsement. AWACS interpretation
Applies to: FHA and VA mortgage loans delivered by Newrez correspondent clients.
What to review: Review the mandatory trust review workflow requiring non-delegated correspondents to obtain written legal approval before final credit decisions effective 2026-04-23. AWACS interpretation
Applies to: Non-QM Smart Series mortgages where the borrower uses eligible digital currency for asset verification or income calculation.
What to review: Review guidelines permitting eligible cryptocurrency to be used for reserves, closing costs, down payments, and income qualification on Non-QM Smart Series loans. AWACS interpretation