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Newrez Correspondent · Correspondent Announcement 2026-035 · Published

Underwriting Guideline Updates for Conforming Loans

Newrez has aligned its conforming underwriting guide with recent bulletins from Fannie Mae and Freddie Mac. The updates incorporate agency revisions for verbal employment verifications, property disclosures, tax installment plans, and appraisal flexibilities.

InformationalApplications dated on or after Jun 1, 2026Checks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

Applies to: Conventional conforming residential mortgage loans originated for delivery to Newrez.

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
Conventional
Affected areas
Submission; Report; Employment verification; EligibilityGuide Section 11.1(g)
Affected documents
Written seller disclosure report; borrower paystub records; tax payment arrangement application
Effective
Applications dated on or after Jun 1, 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 1J.8 (m)(Iv), 1H.4(h), 1B.10 (a)(i), 11.1(g)
RequirementPreviouslyNow
Reviewing real estate disclosure documentsClarifiedSection 1J.8 (m)(Iv)Not statedLenders must evaluate any provided property disclosures on purchase loans to identify potential severe physical defects or value impacts.
Applies when: Purpose is purchase
Delivering property disclosures to the appraiserClarifiedSection 1J.8 (m)(Iv)Not statedDisclosures revealing adverse defects or issues affecting valuation must be shared with the appraiser.
Applies when: Purpose is purchase
Underwriting pending IRS tax payment agreementsClarifiedSection 1H.4(h)Not statedUnderwriters must obtain the payment application with terms and include the monthly obligation in debt ratios, or require payoff prior to closing.
Automated underwriting resubmission on modified two-close construction loansClarifiedSection 1B.10 (a)(i)Not statedModified two-close construction-to-permanent mortgages require resubmission to DU unless loan amount or rate changes remain within allowable tolerances.
Applies when: Engine is du · Purpose is construction
Paystub date criteria for verbal employment confirmationClarifiedSection 11.1(g)Not statedThe paid-through date restriction is eliminated when using year-to-date paystubs to satisfy verbal confirmation standards.
Applies when: Engine is lpa

What to do

AWACS interpretation · not source language

What to review: Review the updated underwriting guidelines aligning conforming requirements for property disclosure handling, IRS installment plans, construction loan automated resubmissions, and verbal verification paystub standards.

QC implications

  • Quality control should sample purchase loans to verify that provided property disclosures were reviewed for physical defects and shared with the appraiser when adverse conditions exist.
  • Quality control should check that pending IRS installment agreements are properly documented with application terms included in qualifying ratios or verified as paid in full prior to closing.
  • Quality control should confirm that modified two-close construction-to-permanent loans exceeding tolerance limits were appropriately resubmitted to Desktop Underwriter.

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.

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  • Requirements backed by the source: Passed, adjusted automatically

    Anything marked required is backed by the requirement language and dates in the source.

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  • 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