AWACSMortgage compliance intelligence from Flightline

Newrez Correspondent · Correspondent Announcement 2026-046 · Published

Conforming Underwriting Guideline Updates for Fannie Mae and Freddie Mac

Newrez has revised its conforming underwriting policies to align with recent Fannie Mae and Freddie Mac announcements. The updates affect credit tradeline reviews, appraisal waiver options, tax transcript forms, self-employment analysis, and property requirements.

InformationalApplications dated on or after Jun 4, 2026Checks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · verified

Applies to: Conventional conforming mortgages delivered to Newrez that are originated under Fannie Mae or Freddie Mac parameters.

Scope differs by change; see each change below.

Addressed to
Newrez correspondent sellersFrom the publisher, not quoted from the text
Investor
NewrezFrom the publisher, not quoted from the text
Affected areas
Waiver; Report; General; Self employed; ManufacturedGuide Section B3-5.3-09
Affected documents
Tax transcript authorization forms; Partnership tax returns and K-1 forms; Property data collection reports
Effective
Applications dated on or after Jun 4, 2026
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 · Sections B3-5.3-09, 5303.1, 5304.1, 4602.1
RequirementPreviouslyNow
Review of authorized user accounts on automated credit filesRelaxedSection B3-5.3-09Not statedReviewing authorized user accounts is no longer required on approve recommendations unless explicit messaging instructs otherwise.
Applies when: Engine is du · Recommendation is approve_eligible
Appraisal waiver availability in targeted rural locationsRemovedPreviously: High-needs rural properties could qualify for complete appraisal waivers under value acceptance.The rural appraisal waiver offering is discontinued, though properties may remain eligible for property data alternatives.
Acceptable disclosure form for requesting borrower tax recordsRelaxedPreviously: Lenders were limited to using standard transcript request Form 4506-C.Alternative tax information authorization form may be utilized when borrowers authorize sharing records with the agency.
Builder criteria for CHOICEHome factory-built propertiesClarifiedNot statedStandardized manufacturing benchmarks apply across structural supports, roof slope, efficiency, and exterior site work.
Applies when: Type is manufactured
Tenure standards for guaranteed partnership distributionsRelaxedSection 5303.1Previously: Guaranteed partnership payouts required a minimum track record of at least twelve months to be counted.Partnership distributions with under one year history can be considered stable income if qualifying transition conditions are satisfied.
Qualifying income calculation for newly self-employed borrowersRelaxedSection 5304.1Previously: Underwriters had to calculate qualifying earnings using the lesser of current self-employment income or past wages.The mandate to evaluate qualifying income against earnings from the previous line of work has been eliminated.
Applies when: Self employed
Eligible dwelling categories with uncompleted construction itemsRelaxedSection 4602.1Not statedFinancing rules for unfinished property work encompass manufactured housing and loans supported by data collection files.

Also affected: Sections B3-6-05, 5601.3, 5605.5.

What to do

AWACS interpretation · not source language

What to review: Review guideline flexibilities for authorized user tradelines, alternative tax authorization forms, and self-employment income calculations, as well as the discontinuation of rural appraisal waivers.

QC implications

  • Verify that Desktop Underwriter casefiles with approve recommendations do not condition for authorized user account reviews unless specifically required by system messaging.
  • Sample rural property files with case numbers on or after 2026-06-27 to ensure discontinued rural appraisal waivers are not utilized.
  • Examine self-employed qualifying income and partnership distributions with less than a twelve-month history to confirm transition conditions are met without unnecessary historical wage comparisons.

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

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

  • 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.