Announcement 2025-031 Closed End Second Update
Newrez LLC "Newrez" Approved Correspondent Clients: updates have been made to the Closed End Second product summary and guidelines.
Effective for existing pipeline, the following have been updated in the Closed End Second Summary and Guidelines.
AVM Providers:
- Updated Collateral Analytics to reflect the new name ICE CA (formerly Collateral Analytics)
- Corrected the FSD score requirements for Corelogic to add the decimal point.
- Corelogic from ≤ 13 to the correct FSD of ≤ 0.13
Added:
Accessory Dwelling Unit to the Property Type section of the guide as an acceptable property type however no rental income from the ADU is permitted. Review the guidelines for a complete list of corresponding requirements
Updated:
General Appraisal Requirements to expand the “as-is” appraisal guidelines.
The following conditions must be met on an appraisal:
- Value is on an “as-is” basis and not subject to future improvements, with an as-is appraisal or 1004D evidencing completion of any cited repair/improvements.
- 1004D to be completed and satisfied prior to closing.
- Acceptable Condition ratings are C1 through C4.
- C5 and C6 condition ratings are ineligible.
- Appraisals assigned from another lender are not permitted.
- Appraisal must be completed for subject transaction; prior appraisals are not permitted.
Updated:
Primary Valuation Requirements to indicate photos of the left and right side of the property are required, when accessible.
Updated:
Stability of Income section in the guide to align with previously announced qualifying income requirements.
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Current Policy |
Updated Policy |
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A minimum of 2 years of continuous employment should be verified for each borrower. If the borrower has been on their current job less than two years, verification of the prior employment will be required. |
All borrowers with qualifying income should have a minimum of a two-year employment history. |