Guideline Alert Archive

BROWSE BY TOPIC

Rental income / departing residence ·
Appraisals (UAD 3.6) ·
Credit scores ·
VA collections ·
DU / AUS ·
Asset income ·
Manufactured housing ·
Condos ·
Loan limits ·
Disaster policy

Rule of the road: agency guidance changes. Always confirm the current rule with the lender you’re brokering to before you quote or lock. Dates below are application/loan dates as noted.

The 5 things to remember from September:

1. VantageScore 4.0 priced like FICO (eff. Oct 1). Fannie LL-2026-06 reissued Sep 30; UWM dropped its adjuster Sep 30, Pennymac Oct 1.
2. DU 12.1 is live (Sep 25).
3. VA collections: 5% of balance ÷ 12 (Handbook Change 47, Aug 25). Re-run VA files declined on debt ratio.
4. PMI-cancellation servicer outreach rule. Watch for client questions on escrow statements.
5. SB 296 disabled-veteran property tax break (eff. Jan 1, 2027).

Deep dive 1 — UAD 3.6 mandate (Nov 2). Expect 1–3 extra days turn time, especially early; appraisal fees expected 10–20% higher (not yet observed). Most lenders flipping early: PRMG already on the new format for conventional (Appraisals@prmg.net); Nations Direct from Oct 12. LO actions: set expectations on every purchase, warn borrowers on fees, order early.

Deep dive 2 — Fannie departing-residence rules (applications dated Dec 1, 2026 or later). Market rent from the 1007 replaces the lease; 75% haircut; positive rent only offsets PITIA unless 12-month landlord history on tax returns (then it counts as income). Move-up buyer trap: departing PITIA $3,200 vs $3,000 market rent = $950/mo DTI shortfall; borrowers without 12-month history need 6 extra months of departing PITIA in reserves ($19,200 on that example). LO action: re-run every live preapproval with a departing residence under December math now.

Deep dive 3 — VantageScore 4.0 on conventional. Open to all approved Fannie/Freddie lenders and priced on the same LLPA chart as FICO since Oct 1. One model per loan for all borrowers; manual UW stays Classic FICO; FHA not until case numbers on/after Jan 1, 2027 (FICO 10T arrives then too). LO action: pull both scores, price both, use whichever wins.

Topics: appraisals, rental income, credit scores

• VantageScore 4.0 priced like FICO (eff. Oct 1). Fannie LL-2026-06 reissued Sep 30: VantageScore 4.0 now prices on the same LLPA chart as FICO for Fannie/Freddie conventional loans. LO action: pull both scores, price both, use whichever wins. One model per loan for all borrowers; manual UW stays Classic FICO; FHA doesn’t take VantageScore until Jan 1, 2027.
• VA collections: 5% of balance ÷ 12 (Change 47, Aug 25). Unpaid non-medical collections with no payment plan now count at 5% of the balance divided by 12 as the monthly payment (was 5% flat) — a $6,000 collection is $25/mo instead of $300/mo. LO action: re-run VA files declined on debt ratio. Medical collections still excluded entirely; VA only.
• FHA allows UAD 3.6 optionally (INFO 2026-23, Oct 1). FHA now accepts UAD 3.6 but doesn’t require it yet — no mandatory date. Once a case uses one format, every appraisal on that case must use the same format. LO action: confirm the lender’s accepted format before ordering.
• Lender notes: The Loan Store renamed to Averra Financial (Oct 1; closed Oct 12, online locking open); UWM October deadlines — owner-occupied refis CD out Oct 22 / close Oct 26, purchases and investment refis CD out Oct 27; UWM non-warrantable condos now 50% DTI on purchase and rate/term; PRMG no rate sheets Oct 12; Spring EQ 25 bps off home equity through Oct 7 and 75 bps off DSCR through Oct 31.

Topics: credit scores, VA collections, appraisals

Watch: Oct 12 Columbus Day (no rescission/funding) · Oct 25 Freddie LPA new credit score messages · Nov 2 UAD 3.6 mandatory (conventional UCDP) · Nov 30 DU older enhanced Findings sunset · Dec 1 Fannie rental income · Jan 1, 2027 FHA VantageScore 4.0 + FICO 10T · Feb 3, 2027 Freddie asset income formula

• DU 12.1 live Sep 25. New occupancy flag (OCC-03) and appraisal flag (DCM-01). Appraiser on Fannie’s No Longer Accepted list or C6 condition = Ineligible. Salaried borrowers: 3 months at current job + 12 months total history can verify automatically. Rent from the subject 1-unit primary/second home makes the file Ineligible (ADU income still OK).
• Fannie rental income rules moved to Dec 1 (SEL-2026-08 reissued Sep 23). Application date controls.
• UAD 3.6 required Nov 2 for new appraisals first submitted to UCDP on/after that date.
• Lender notes: 11 Mortgage exited wholesale; several lenders raised loan limits early.

Topics: DU, rental income, appraisals, loan limits

• Freddie asset income easier (Bulletin 2026-10). Eligible net assets divided by 180 (was 240). Minimum $30,000 net eligible assets. Primary, second home, and investment OK. Lenders may use it now; required for settlements on/after Feb 3, 2027. Needs LPA Accept.
• UWM: honoring ~$847,440 1-unit conventional + VA ahead of FHFA; non-warrantable condos expanded.
• PRMG: locks on/after Sep 16, standard-balance conventional to ~$845,000 1-unit.
• TLS (now Averra): live on Freddie-style asset depletion + relocated MH rules; jumbo program discontinued Sep 16.

Topics: asset income, loan limits, condos, manufactured housing

• VantageScore 4.0 open to all approved lenders (Fannie LL-2026-06, Freddie Bulletin 2026-H). One model per loan. Manual underwrites stay Classic FICO.
• FHA: Jan 1, 2027 for VantageScore 4.0 and FICO 10T (case numbers on/after).
• Departing residence deep dive (Fannie SEL-2026-08): no lease for qualifying rent on the departing home; market rent via appraisal/1007/3-comp tool; 75% of market rent minus full PITIA; positive amount only offsets that home’s payment.
• Freddie manufactured homes: some homes moved from another site may be eligible with hard conditions.

Topics: credit scores, rental income, manufactured housing

Current-state summaries. If a newer alert changed one of these, the newer alert wins.

Rental income / departing residence (Fannie)

For applications dated on or after Dec 1, 2026 (SEL-2026-08): when the borrower buys a new primary and keeps the old home as a rental, a signed lease cannot set the qualifying rent. Use market rent (appraisal, Form 1007, or tool with 3+ similar rentals). Take 75% of market rent, subtract the old home’s full PITIA. A positive remainder only offsets that home’s payment; it is not added to income. Reserves trap: borrowers without 12 months of landlord history need 6 extra months of departing-home PITIA in reserves.

Appraisals: UAD 3.6

Starting Nov 2, 2026, new Fannie/Freddie appraisals first submitted to UCDP must use UAD 3.6. Lenders that aren’t ready can request a one-time GSE exception to keep submitting UAD 2.6 through May 19, 2027 (each lender needs its own approval). FHA allows UAD 3.6 optionally (FHA INFO 2026-23) with no mandatory date yet. Expect 1–3 extra days of turn time, especially early, and appraisal fees expected 10–20% higher (not yet observed).

Credit scores

VantageScore 4.0 is open to all approved Fannie/Freddie lenders (one model per loan; manual UW stays FICO). LO action: pull both scores, price both, use whichever wins. Since Oct 1, Fannie/Freddie price VantageScore on the same LLPA chart as FICO. FHA adds VantageScore 4.0 and FICO 10T for case numbers on/after Jan 1, 2027.

VA collections

VA Lenders Handbook Change 47 (Aug 25, 2026): unpaid non-medical collections with no payment plan now count at 5% of the balance divided by 12 as the monthly payment (was 5% flat) — a $6,000 collection is $25/mo instead of $300/mo. LO action: re-run VA files declined on debt ratio. Medical collections still excluded entirely; VA loans only.

DU / AUS (DU 12.1, live Sep 25)

New occupancy flag (OCC-03) and appraisal flag (DCM-01). Appraiser on the No Longer Accepted list or C6 condition = Ineligible. Salaried: 3 months current job + 12 months total history can auto-verify. Subject-property rent on a 1-unit primary/second home = Ineligible (ADU income OK).

Asset income (Freddie)

Bulletin 2026-10: eligible net assets divided by 180 (was 240); $30,000 minimum; primary, second, and investment OK; needs LPA Accept. Lenders may use now; required for settlements on/after Feb 3, 2027.

Manufactured housing

Freddie may allow certain manufactured homes moved from another site, with hard conditions. Always confirm the specific wholesale lender.

Condos

UWM: non-warrantable condo DTI to 50% on purchase/rate-term (cash-out 45%), DU/LPA eligible. Watch: 15% reserve test on Full Review starting Jan 4, 2027.

Loan limits

2026 conforming: $832,750 1-unit. Ahead of the official 2027 FHFA announcement, UWM is honoring ~$847,440 1-unit on conventional + VA; Nations Direct has $845,000 / $1,267,500 (HB) in pricing; PRMG ~$845,000 1-unit on locks since Sep 16. All estimates: confirm before quoting.

Disaster policy

FEMA DR-4945 (Ohio, declared Oct 2, 2026): 7 counties. Appraisals on/before Aug 22, 2026 need re-inspection (1004D or 2075/2070). Policy through Jan 30, 2027.

– Glenn

GTG Financial internal resource. Updated weekly after each guideline alert. Not indexed by search engines.