Weekly guideline alert – Oct 5, 2026

• VantageScore 4.0 priced like FICO (eff. Oct 1). Fannie Lender Letter LL-2026-06 reissued Sep 30: VantageScore 4.0 now prices on the same LLPA chart as FICO for Fannie/Freddie conventional loans — the old haircut is gone. LO action: pull both scores, price both, use whichever wins. One score model per loan for all borrowers; manual underwrites stay Classic FICO; FHA doesn’t take VantageScore until Jan 1, 2027.
• VA collections: 5% of balance ÷ 12 (Handbook 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 the new UAD 3.6 appraisal format 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 which format the lender takes 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.

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

Topics: credit scores, VA collections, appraisals

Full topic references: LO Library · Alert archive