Loan impact
Summarized from the announcement · needs reviewApplies to: FHA loans delivered to Newrez, including construction transactions and borrowers employed by family businesses.
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
- Affected areas
- Employment verification; Eligibility
- Affected documents
- Payroll ledger; paystub
- 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 2B.8, 2I.6(i), 2A.15| Requirement | Previously | Now |
|---|---|---|
| Borrower acting as general contractor restrictionTightenedRequiredSection 2B.8 | New requirement | Borrowers are not permitted to serve as general contractors. |
| Applies when: Purpose is construction | ||
| Family employment payroll ledger documentationTightenedRequiredSection 2I.6(i) | New requirement | An accountant must submit a signed payroll ledger if the paystub is not generated by computer. |
| Section 184 Indian reservation program eligibilityRelaxedSection 2A.15 | Not stated | Section 184 Indian reservations are no longer classified as ineligible. |
What to do
AWACS interpretation · not source languageWhat 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.
Immediately disallow borrowers from serving as general contractors on construction loans and require an accountant-signed payroll ledger when a paystub is not computer-generated.
Ensure pipeline loan procedures immediately enforce the restriction against borrowers serving as general contractors on construction loans and the mandate for accountant-signed payroll ledgers for non-computer-generated paystubs.
QC implications
- Sample construction loan files to confirm borrowers are not acting as general contractors.
- Verify that family-employment files lacking computer-generated paystubs contain an accountant-signed payroll ledger.
- Confirm that Section 184 Indian reservation properties are no longer rejected as ineligible.
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, adjusted automatically
Every quoted passage appears word for word in the official document.
- A loan-impact detail without a supporting quote was removed
- A detail the source does not support was removed or adjusted
- An independent check could not confirm that a quote supports its detail; the detail was downgraded
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, 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
- Client Announcement 2026-036 (official) ↗ (opens in a new tab)
- Archived copy, SHA-256 4a308d667ab8…
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