Announcement 2026-069 Conventional and Government Product Summary, Guideline and Overlay Updates
Conventional and Government Product Summary, Guideline and Overlay Updates
Newrez LLC "Newrez" Approved Correspondent Clients, please review the updates made to the Product Summaries, Overlay Matrices and Guidelines as noted below.
All updates are effective August 27, 2026 for pipeline loans with the exception of the Temporary Buydown Term updates which are effective August 27, 2026 for new loans only.
Conforming Product Summaries
· Minimum Loan Amount
o $25,000 minimum loan amount
· Temporary Buydown Terms
o 21-to-30-year terms in annual increments
· Non-Delegated Client- Nebraska has been added to the Net Tangible Benefit Requirements to complete the state specific forms
Conforming Overlay Matrix
· Minimum Loan Amount
o $25,000 minimum loan amount
· Temporary Buydown
o Loan Terms
§ Temporary Buydowns: Less than 21 Year terms in annual increments not permitted
· Income Commencing after Note Date/Future Income
o Post Close Paystubs, when required, must be obtained prior to purchase by Newrez
· Completion Reports
o Removed documentation requirements due to Alternative Methods not permitted.
§Updated verbiage for clarification
· DU Only: Alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions are not permitted.
Government Product Summaries
· Minimum Loan Amount
o $25,000 minimum loan amount
· Non-Delegated Client- Nebraska has been added to the Net Tangible Benefit Requirements to complete the state specific forms
· Removed non-arm’s length transaction from the Tax Transcripts requirement section of the applicable FHA and VA product summaries
Government Overlay Matrix
· Minimum Loan Amount
o $25,000 minimum loan amount
· FHA - Employed by Family Member-Non-Delegated Correspondents
o If the paystub is not computer generated, the accountant must provide a signed payroll ledger (Does not apply to Delegated Correspondents)
VA Guidelines
3A.15 Joint Loans added to the list of loans considered as a joint loan:
- The Veteran and a Non-Borrowing party who is to be on title but is not the Veteran’s spouse.
Joint Loans Requiring VA Prior Approval topic has been removed
3A.15(b) Underwriting Joint Loans
· Updated policy to align with VA Circular 26-22-09 - that lenders with automatic authority have VA’s prior approval to close a VA guaranteed loan made to the following:
o Two or more Veterans who are all using entitlement;
o Veteran and Veteran’s spouse will hold title to the property, whether or not the spouse also uses entitlement; or
o A Veteran who has been rated inability to manage financial affairs (one for whom VA has appointed a fiduciary
DU for Government – VA Version 4.1
Effective for all new VA loan casefiles on and after August 22, 2026, VA Version 4.1 has been implemented.
· Existing casefiles created under VA v4.0 will continue to be underwritten using v4.0.
· VA v3.1 is now retired but will still be viewable for loan applications and DU finding reports however, any updated underwriting recommendations after August 22, 2026 will require the creation of a new loan casefile and resubmission to DU.