Guideline Alert Archive

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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.

Weekly alert · Oct 26, 2026 · Freddie LPA October changes live + UAD 3.6 final week before Nov 2 mandate

• Freddie LPA October 2026 changes live Oct 25. New per-borrower messages FCL0452/FCL0453 replace old ones and repeat for each borrower and score model. VantageScore 4.0 must get Accept; not eligible for manual UW. Mixing models across borrowers is a hard stop. Condo Not Eligible messages now give the reason. Construction-to-perm: LPA auto-requests a credit reissue and extends expiration. Nov 21: feedback certificate will show all models submitted. LO action: check messages per borrower and model; do not mix models.
• UAD 3.6 final week before Nov 2 mandate. UCDP mandate Nov 2, 2026. Lenders not ready can request a one-time exception to May 2027; FHA still optional. LO action: confirm the lenders accepted format before ordering; close out 2.6 pipeline early.
• Lender notes: AD Mortgage: VantageScore 4.0 rolling out shortly on all products (no formal go-live yet; confirm with AD desk first). Averra Memo 2026-081 (locks on/after Oct 22): Flex NQM – unlimited cash-out at 65% LTV or less, primary cash-out to $2.5M at 75% LTV with 720 FICO, second homes to $3M, DSCR down to 0.75, first-time investors can do cash-out/interest-only/gift funds at 1.00 minimum DSCR, Credit Guideline Waivers, Florida condo limit removed. UWM: owner-occupied refis close by Oct 26; purchases and non-owner refis need CDs out by Oct 27; Bullseye 90 through Oct 30. Spring EQ promos through Nov 1: 25 bps better on home equity, appraisal costs covered, 75 bps off DSCR. Kind Lending confirmed Oct 23 it does NOT accept VantageScore. PRMG: Denver Metro DPA now in wholesale (0% deferred second, 620 FHA/Fannie, 660 Freddie); revamped LEO CD Request form live Oct 21. NewRez: Medical Professional Home Loan now includes nurse practitioners with MSN or DNP (up to 100% financing, no traditional MI, up to $2M).

Topics: credit scores, appraisals

Watch: Nov 6 FHA INFO 2026-22 feedback · Nov 13/14 DU 12.1 · Nov 21 LPA feedback certificate · Nov 30 DU enhanced findings sunset · Dec 1 rental income · Dec 2 K-1 verbal VOE · Dec 6 Freddie condo flood · Jan 1, 2027 FHA lowest score controls

• Fannie DU 12.1 changes (release notes posted Oct 14). Nov 14 job rule: salaried borrowers employed by a family member, the seller, the agent, or another party to the transaction need 12 months at that same job (was 3 months current job + 12 months total history) — applies to DU casefiles first created on/after Nov 14. Nov 13: DU occupancy red flag gets sharper (also reviews rental-management history); if it fires, the lender must document how occupancy was verified or the loan becomes investment. Nov 30: older “enhanced” DU Findings HTML/PDF versions retire. Dec 2: verbal VOE required for borrowers using Schedule K-1 income with under 25% ownership, applications dated on/after Dec 2 (SEL-2026-09; no VOE if rental income is the only K-1 income). Dec 11: DU messages align with October Selling Guide changes (looser verbal VOE methods; income continuance measured from application date). LO action: flag family/seller/agent-employed salaried borrowers for the 12-month rule on DU casefiles created on/after Nov 14; document occupancy verification when the occupancy flag fires; pull current enhanced Findings before Nov 30; order verbal VOEs for K-1 under-25% ownership applications dated Dec 2+.
• Rental income: lenders adopting Fannie’s new rules early (required for applications dated Dec 1, 2026 or later, SEL-2026-08). Averra adopted for DU loans Oct 15 (Memo 2026-076); Nations Direct similar; Kind briefed brokers Oct 19. Rules: departing-residence rent from the 1007/market rent report, never a lease; borrowers with under 12 months landlord history need 6 extra months of PITIA reserves; Averra market-rent options are an MLS report with 3+ comps or a Zillow Rent Zestimate Report PDF; one existing ADU’s rent can count on purchase/limited cash-out (max 30% of total qualifying income); short-term rentals OK if legally permitted, qualify off long-term 1007 rent; new leases (within 2 months of application) on properties not on the last tax return need 6+ month terms, first rent due by first mortgage payment, tenant not family/party to the deal. LO action: underwrite to the early-adopter rules now — Averra DU (from Oct 15), NDM, Kind; use the 1007/market rent report for departing-residence rent, never a lease; document the ADU, short-term-rental, and new-lease conditions.
• UAD 3.6 starts Nov 2 (lenders not ready can request a one-time exception to May 2027; FHA still optional). Newrez began accepting the new format Oct 19. PRMG updated its appraisal guidelines and appraisal transfer policy Oct 14. Arc Home has a new transferred-appraisal policy effective now. LO action: confirm the lender’s accepted format BEFORE ordering; follow PRMG’s updated appraisal and transfer guidelines and Arc Home’s new transferred-appraisal policy.
• Lender notes: UWM October deadlines (owner-occ refis CD out Oct 22 / close Oct 26; purchases and non-owner refis CD out Oct 27), One-Time Close training requirement, CA co-signer notice at closing, Bullseye 90 through Oct 30; Averra ARM overlays removed, investor-refi ACE waivers on LPA (75% rate/term, 60% cash-out), multi-party/lender-paid temporary buydowns; PRMG Update 26-47 (homebuyer education before closing for first-time buyer programs, FHA excess land, Medical Professionals change, NHF co-signers); Arc Home lock extension fee now 4 bps/day (was 2); Spring EQ free appraisals on home equity + 75 bps off DSCR through Oct 31; Advantage Credit SSN corrections now by email only to ccs@advcredit.com (no more phone/chat fixes).

Topics: DU/AUS, rental income, appraisals

Watch: Oct 25 LPA score messages (VantageScore must get Accept; no mixing score types; condo Not Eligible messages will state why) · Nov 6 last day for feedback on FHA draft property rules (INFO 2026-22) · Dec 6 Freddie condo flood rules (Bulletin 2026-14) · Jan 1, 2027 FHA new score models, lowest score controls (ML 2026-11) · Feb 3, 2027 Freddie asset income required (Bulletin 2026-10) · 2027 loan limits not out yet (UWM honoring $847,440 1-unit conventional/VA)

• Freddie Bulletin 2026-13: ACE appraisal waivers now on investment property refis (effective immediately). ACE and ACE+ PDR appraisal waivers are now possible on investment property refis — previously ineligible. Also in the bulletin: solar panels with a UCC-1 filing — a solar endorsement on the title policy can now satisfy the requirement instead of subordinating or releasing the UCC-1 (CA-relevant). Plus Freddie condo flood master-coverage rules take effect Dec 6, 2026. LO action: check ACE/ACE+ eligibility on investor refis before ordering an appraisal; loop in title early on financed-solar deals.
• UWM drops minimum credit scores across agency products. The automated approval (DU/LPA) now decides — published minimums are gone. Also: UWM FHA/VA LLPA changes. LO action: run the AUS and price per the findings; reprice affected UWM FHA/VA files.
• FHA: the LOWEST score controls Jan 1, 2027 (ML 2026-11 / INFO 2026-24). When the new credit scores take effect, the MDCS methodology applies — no picking the best score. LO action: underwrite FHA files to the low score.
• Also this week: Fannie SEL-2026-09 adds verbal VOE flexibility. UAD 3.6 DELAYED — Fannie/Freddie are granting waivers to sellers who can’t hit Nov 2, extending the mandate to May 2027. Nov 2 technically stands — no waiver means noncompliant. Some lenders are implementing now anyway. LO action: confirm the lender’s accepted format BEFORE ordering.
• CA Law Watch: AB 801 (DFPI fair lending exams) and AB 2050 (HOA reserve funding) — both effective Jan 1, 2027.
• Lender notes: SpringEQ promos run through Oct 31; PRMG/Kind Columbus Day schedules (Oct 12); NDM departing-residence guidance.

Topics: appraisals, credit scores, DU/AUS

Watch: Oct 15 CA FAIR Plan +29.1% · Oct 22 UWM owner-occ refis CD out / Oct 26 close · Oct 27 UWM purchases and NOO refis CD out · Nov 2 UAD 3.6 (technically stands; waivers to May 2027) · Nov 30 DU older enhanced Findings sunset · Dec 1 Fannie rental income · Dec 6 Freddie condo flood master-coverage rules · Jan 1, 2027 FHA VantageScore 4.0 + FICO 10T; AB 801 + AB 2050 effective · Feb 3, 2027 Freddie asset income formula · Nov 2026 ballot: $11.25B Veterans and Affordable Housing Bond Act

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) — and lenders are adopting early: Averra for DU loans Oct 15 (Memo 2026-076), Nations Direct similar, Kind briefed brokers Oct 19. 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); Averra accepts an MLS report with 3+ comps or a Zillow Rent Zestimate Report PDF. 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. One existing ADU’s rent can count on purchase/limited cash-out (max 30% of total qualifying income). Short-term rentals OK if legally permitted, qualify off long-term 1007 rent. New leases (within 2 months of application) on properties not on the last tax return need 6+ month terms, first rent due by the first mortgage payment, tenant not family/party to the deal.

Appraisals: UAD 3.6 goes live Nov 2 + ACE waivers + solar + transfers

UAD 3.6 starts Nov 2, 2026 — lenders not ready can request a one-time exception to May 2027; FHA still optional. Newrez began accepting the new format Oct 19. Confirm the lender’s accepted format before ordering. 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). ACE / ACE+ PDR appraisal waivers now eligible on investment property refis, effective immediately (Freddie Bulletin 2026-13). Solar: panels with a UCC-1 filing — a solar endorsement on the title policy can now satisfy the requirement instead of subordinating/releasing the UCC-1; loop in title early on financed solar. Transfers: PRMG updated its appraisal guidelines and appraisal transfer policy Oct 14; Arc Home has a new transferred-appraisal policy effective now. Final week before the Nov 2, 2026 mandate: close out the 2.6 pipeline early.

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 — and the LOWEST score controls under the MDCS methodology (FHA ML 2026-11 / INFO 2026-24); LOs cannot pick the best score. UWM dropped minimum credit scores across agency products — the automated approval (DU/LPA) now decides. Oct 26 update: LPA per-borrower score messages FCL0452/FCL0453 are live Oct 25; VantageScore 4.0 must get Accept on LPA and cannot be mixed across borrowers. AD Mortgage is rolling out VS4 shortly (confirm with the desk first); Kind Lending does NOT accept VantageScore.

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. Subject-property rent on a 1-unit primary/second home = Ineligible (ADU income OK). Fannie SEL-2026-09: verbal VOE flexibility — relaxed timing and method for the verbal verification of employment (see the DU/AUS library page for the exact rule). DU 12.1 Nov/Dec dates: Nov 14 — salaried borrowers employed by a family member, the seller, the agent, or another party to the transaction need 12 months at that same job (DU casefiles first created on/after Nov 14); Nov 13 — occupancy flag sharpens (also reviews rental-management history; lender must document how occupancy was verified or the loan becomes investment); Nov 30 — older “enhanced” DU Findings HTML/PDF versions retire; Dec 2 — verbal VOE required for borrowers using Schedule K-1 income with under 25% ownership, applications dated on/after Dec 2 (no VOE if rental income is the only K-1 income); Dec 11 — DU messages align with October Selling Guide changes (looser verbal VOE methods; income continuance measured from application date).

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.