AWACSMortgage compliance intelligence from Flightline

Newrez Correspondent · Client Announcement 2026-037 · Published

Newrez Updates Disaster Inspection Standards for Non-QM Loans

Correspondent lenders must obtain a disaster inspection report and ensure completed repairs prior to closing for Non-QM loans appraised before an incident concludes. Alternatively, existing appraisals may validate property condition during non-ongoing events when completed between the incident start and end dates.

Action requiredNo effective date statedChecks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · verified

Applies to: Non-QM mortgages secured by properties located in declared disaster areas.

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
Non-QM
Affected areas
Valuation; EligibilityGuide Section 7A.9
Affected documents
Disaster inspection documentation; Property valuation report
Applicability confidence
Verified: every row taken from the source text is supported by it; rows marked "from the publisher" are not quoted

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 · Section 7A.9
RequirementPreviouslyNow
Disaster inspection and damage repair protocolTightenedRequiredNot statedLenders must obtain an inspection report confirming zero damage and ensure all identified damage is fully repaired prior to closing.
Applies when: Program is Non-QM
Appraisal validation flexibility for non-ongoing disaster eventsRelaxedNot statedThe original appraisal may validate the absence of damage when completed between incident start and end dates for non-ongoing events.
Applies when: Program is Non-QM

What to do

AWACS interpretation · not source language

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.

Underwriting

Obtain an inspection report confirming zero damage and confirm all identified property damage is fully repaired prior to closing Non-QM loans.

Closing

Ensure that the inspection report confirming no damage is received and that all identified damage is fully repaired prior to closing Non-QM loans.

QC implications

  • Sample Non-QM loans secured by properties in disaster areas to confirm an inspection report showing zero damage was obtained and all identified repairs were completed before closing.
  • Verify that any original appraisal used to establish property condition during non-ongoing events was completed between the incident start and end dates.

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

    Every quoted passage appears word for word in the official document.

  • 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