AWACSMortgage compliance intelligence from Flightline

Newrez Correspondent · Correspondent Announcement 2026-092 · Published

Newrez adopts Fannie Mae SEL 2026-09 with an overlay limiting employment verification methods

On Fannie Mae loans, Newrez now accepts employment verification only verbally, in writing or through a verification vendor; any other method is barred, and its ban on attorney opinion letters stays in place. It also passes along Fannie Mae's K-1 verbal VOE rule for applications from December 2, 2026 and its updates to income assessment.

Action requiredApplications dated on or after Dec 2, 2026Checks passed· adjusted automaticallyRead the announcement ↗ (opens in a new tab)

Loan impact

Summarized from the announcement · needs review

Applies to: Fannie Mae loans sold to Newrez, where employment verification is limited to verbal, written or vendor methods; the restated Fannie Mae income and K-1 VOE updates also apply.

Addressed to
Newrez LLC "Newrez" Approved Correspondent Clients
Investor
NewrezFrom the publisher, not quoted from the text
Exceptions
K-1 showing only rental income does not need a verbal VOE
Effective
Applications dated on or after Dec 2, 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 B3-3.1-04, B3-2
RequirementPreviouslyNow
Allowed methods for verifying employment (Newrez overlay)NewRequiredSection B3-3.1-04New requirementOnly verbal, written or vendor verification is accepted; Newrez bars any other method, and this overlay also applies to DU loans
Verbal VOE for K-1 income from minority ownership (Fannie Mae restated)ClarifiedSection B3-3.1-04Not statedA verbal VOE is needed when qualifying with K-1 income from a business owned less than 25%; not needed if the K-1 shows only rental income
Fannie Mae no longer lists specific verbal VOE methods (restated)RemovedSection B3-3.1-04Not statedFannie Mae dropped its list of verbal VOE methods; the timing rules are unchanged
Income continuance measuring date (Fannie Mae restated)ChangedSection B3-2Not statedThree-year continuance is measured from the application date
Proof that an employment offer was accepted (Fannie Mae restated)RelaxedSection B3-2Not statedAcceptance can be shown by a signed agreement, written confirmation such as email, or another verifiable method
Documenting new annuity or pension income (Fannie Mae restated)RelaxedSection B3-2Not statedA provider benefit statement can be used if payments start by the first payment due date; it must show the income type, amount, frequency and start date
Attorney opinion letters (existing Newrez overlay)ClarifiedNot statedStill not accepted by Newrez

What to do

AWACS interpretation · not source language

What to review: First, check that employment on Fannie Mae loans sold to Newrez, including DU loans, is now verified only verbally, in writing or through a vendor; then note that Newrez still does not accept attorney opinion letters, and review the restated Fannie Mae updates: the K-1 verbal VOE rule for applications from 2026-12-02, the dropped list of verbal VOE methods, three-year continuance measured from the application date, and the wider options for proving an accepted job offer and documenting new annuity or pension income, which lenders may use.

Underwriting

Starting now, on Fannie Mae loans sold to Newrez, including DU loans, verify employment only verbally, in writing or through a verification vendor, and do not accept any other method.

QC implications

  • Sample Fannie Mae loans sold to Newrez, including DU loans, to confirm employment was verified only verbally, in writing or through a vendor.
  • Flag any file in the sample where employment was verified some other way.
  • For applications dated on or after 2026-12-02 that use K-1 income from a business owned less than 25%, check whether a verbal VOE is in the file, keeping in mind it is not needed when the K-1 shows only rental income.
  • Where offer acceptance or new annuity or pension income is documented under the restated Fannie Mae options, check that the documentation fits what the record describes, such as a benefit statement showing the income type, amount, frequency and start date.

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, 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
    • An independent check could not confirm which loans a change applies to; those conditions were removed
    • An independent check could not confirm which way a change moves a rule; it is not marked as required
    • An independent check could not confirm a detail; it was downgraded, never upgraded

  • 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