AWACSMortgage compliance intelligence from Flightline

Newrez Correspondent · Client Announcement 2026-029 · Published

Underwriting Guideline Revisions for Government Loan Programs

Newrez announced guide updates aligning with recent VA appraisal standards and updated 2025 tax return timing rules for government loans. The bulletin also clarifies non-delegated trust review submissions and lifts the restriction on intermediary companies for VA transactions.

Action requiredEffective Apr 23, 2026Checks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

Applies to: FHA and VA mortgage loans delivered by Newrez correspondent clients.

Scope differs by change; see each change below.

Addressed to
Newrez LLC "Newrez" Approved Correspondent Clients
Investor
NewrezFrom the publisher, not quoted from the text
Programs
FHA, VA
Affected areas
General; Eligibility; Products; Eligibility
Affected documents
Personal tax returns; trust documentation; purchase contract
Effective
Apr 23, 2026
Applicability confidence
Needs review: some rows could not be matched to a quote from the source

Summary by AWACS. Newrez 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 announcement · Sections 3J.13, 2I.1(h), 2A.14, 2F.9(c)(ii), 3B.1(a), 3H.4(j)
RequirementPreviouslyNow
VA appraisal standards updateClarifiedSection 3J.13Not statedAppraisal standards for minimum property condition, heating, and lead paint are revised in alignment with VA guidance.
Applies when: Program is VA
Removal of obsolete VA appraisal topicsRemovedSection 3J.13Not statedAppraisal sections regarding detached improvements, non-vented heaters, pre-1978 related improvements language, and radon gas are deleted.
Applies when: Program is VA
Allowable age of 2025 federal tax returnsClarifiedSection 2I.1(h)Not statedTax documentation requirements and filing dates for 2025 individual returns and extensions are incorporated.
Trust review workflow for non-delegated lendersTightenedRequiredSection 2A.14Not statedNon-delegated correspondents must submit trust requests for written legal approval before final credit decision.
FHA manual underwrite downgrade guidelines for collectionsClarifiedSection 2F.9(c)(ii)Not statedManual downgrade instructions are updated to separate collection accounts from charge-offs following agency handbook standards.
Applies when: Program is FHA
Intermediary company usage on VA loansRelaxedSection 3B.1(a)Not statedCorrespondent lenders are permitted to utilize intermediary companies on VA originations.
Applies when: Program is VA
Departing residence debt calculation with intermediary contractRelaxedSection 3H.4(j)Not statedThe departing home payment may be excluded from monthly obligations when a pending contract with an intermediary entity exists.
Applies when: Program is VA
Adjustment date cycle for government 5/1 ARMsClarifiedNot statedInterest rate adjustment dates for government five-year adjustable rate mortgages follow quarterly periods.

What to do

AWACS interpretation · not source language

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.

Underwriting

Ensure non-delegated trust review requests are submitted for written legal approval prior to rendering a final credit decision starting 2026-04-23.

QC implications

  • Test non-delegated loan files involving trusts to verify written legal approval was received before the final credit decision.
  • Verify that VA appraisals meet revised property condition, heating, and lead paint requirements, noting the removal of obsolete standards.
  • Confirm that any excluded departing residence payments on VA files are supported by an intermediary company contract.

Source and record

Version 1 · archived

Checks

  • 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.

    • A detail the source does not support was removed or adjusted

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed

    The record follows the AWACS format and uses its standard labels.