AWACSMortgage compliance intelligence from Flightline

Newrez Correspondent · Announcement 2026-097 · Published

FHA and VA 3-1 Adjustable-Rate Mortgage Program Launch

Newrez introduced a three-year initial fixed period adjustable-rate mortgage option for government loan products. The program supports eligible FHA and VA purchase and refinance transactions.

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

Loan impact

Summarized from the announcement · verified

Applies to: Approved correspondent lenders offering government-insured three-year hybrid adjustable-rate mortgages.

Addressed to
Newrez LLC "Newrez" Approved Correspondent Clients
Investor
NewrezFrom the publisher, not quoted from the text
Programs
FHA, VA
Affected areas
Eligibility; Products
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
RequirementPreviouslyNow
Introduction of FHA and VA 3/1 ARM productsRelaxedNot statedLenders may originate three-year initial fixed rate adjustable mortgages under FHA and VA programs.

What to do

AWACS interpretation · not source language

What to review: Review the newly introduced optional three-year initial fixed period adjustable-rate mortgage program guidelines for eligible FHA and VA purchase and refinance transactions.

QC implications

  • Quality control should sample originated FHA and VA loans utilizing the newly available three-year initial fixed-rate adjustable mortgage option to verify eligibility requirements are satisfied.

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.