AWACSMortgage compliance intelligence from Flightline

Newrez Correspondent · Correspondent Announcement 2026-057 · Published

Government Underwriting Guide Updates for VA Stock Income and Delegated MCC Overlays

Newrez updated its government underwriting guidelines regarding VA restricted stock income and Mortgage Credit Certificates. VA guidance now covers restricted stock units, and Mortgage Credit Certificates on FHA and VA loans are limited to delegated clients.

Review recommendedAll checks passedRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · verified

Applies to: FHA and VA loans delivered by correspondent sellers.

Applies when all of these are true
  • ANDNewrez loan
  • ANDProgram is FHA or VA
Addressed to
Newrez correspondent sellersFrom the publisher, not quoted from the text
Investor
NewrezFrom the publisher, not quoted from the text
Programs
FHA, VA
Affected areas
Employment verification; ProductsGuide Section 3I.6(q)
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 3I.6(q)
RequirementPreviouslyNow
VA restricted stock and RSU employment income calculationNewNew requirementGuidance has been incorporated for evaluating restricted stock and restricted stock unit compensation as qualifying employment income.
Applies when: Program is VA
Mortgage Credit Certificate eligibility restrictionTightenedNot statedMortgage Credit Certificates on FHA and VA transactions are allowed exclusively for delegated correspondent lenders.
Applies when: All loan-impact conditions above

What to do

AWACS interpretation · not source language

What to review: Review the newly added provisions for evaluating restricted stock and RSU income on VA loans, alongside the restriction permitting Mortgage Credit Certificates exclusively for delegated correspondent lenders on FHA and VA transactions.

QC implications

  • Sample VA loans utilizing restricted stock and restricted stock unit income to ensure qualifying calculations adhere to the newly incorporated guidance.
  • Verify that Mortgage Credit Certificates on FHA and VA loans are only permitted on delegated correspondent originations.

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

    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.