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Announcement 2026-081 Product Summaries and Overlay Matrix Updates - Government

Announcement 2026-081 Product Summaries and Overlay Matrix Updates - Government

Product Summaries and Overlay Matrix Updates - Government

Newrez LLC “Newrez” Approved Correspondent Clients, Newrez has updated the Conventional Product Summaries and Overlay Matrix.

 

FHA

 

Streamline Product Summaries:

Added the following footnote to the Eligibility Matrix:

³Appraisal value is the Original Property Value from the Refinance Authorization.

Appraisal Section:

Added:

No appraisal is required. Use the original property value from the Refinance Authorization. 

 

FHA Guidelines:

 

FHA INFO 2026-18

For clarification, FHA published the following Handbook 4000.1 updates on August 12, 2026:

·        II.A.4.c.ii Employment Related Income (TOTAL) and II.A.5.b.ii Employment Related Income (Manual) – Added definitions for Written Verification of Employment, Electronic Verification of Employment, and Reverification of Employment.

·        II.A.4.d.iii(L)(2) Federal Home Loan Bank Homeownership Set-Aside Program (TOTAL) and II.A.5.c.iii(L)(2) Federal Home Loan Bank Homeownership Set-Aside Program (Manual) — Clarified that FHLB Set-Aside funds may be provided as either a grant or secondary financing.

      See the redlined Handbook 4000.1 for complete details - Handbook 4000.1 Information web page

VA

Guideline Updates:

VA Pamphlet 26-7, Chapter 4, Credit Underwriting, corrected a minor inconsistency in the payment calculation for non-medical collection accounts.

·         Include non-medical collection accounts without established payment arrangements using a monthly payment equal to 5% of the outstanding balance divided by 12 months.

Newrez Underwriting Guide:

Chapter 3F – Credit - 3F.7(d) Delinquent Credit – Reformatted to align with VA handbook language. No policy changes were made, except clarification of the non-medical collection account payment calculation.

 

Chapter 3G – Assets:

Added new topic: 3G.3(b) Bridge Loans.

A bridge or swing loan is an acceptable source of down payment funds if the following requirements are met:

  • The bridge loan cannot be cross-collateralized against the new property.
  • The lender must document that the borrower can make payments on the new home, current home, bridge loan, and all other obligations.

Bridge loan funds may be used to close on a new principal residence before the current residence is sold. The bridge loan creates a contingent liability that must be treated as a recurring monthly debt and included in the DTI ratio.

Overlay Updates:

New:

Past Due Account – Past due accounts not yet reported as collection accounts must be brought current, and funds must be sourced.

Judgements, Tax Liens & Garnishments - All tax liens and court-ordered judgments must be satisfied at or before closing, regardless of the automated underwriting recommendation. 

USDA

Added the USDA Single Family Housing Guaranteed Loan Program Handbook HB-1-3555 link to the Product Summaries.

 

The Newrez USDA Guidelines have been retired. Refer to HB-1-3555, the Product Summaries, and overlays for all underwriting and eligibility requirements.