Bulletin 2023-061 Underwriting Guideline Updates
Newrez LLC "Newrez" Approved Correspondent Clients; effective immediately, unless otherwise noted, for all loans in pipeline, the topics contained in this announcement have been updated in the Conventional Conforming, FHA, and VA Underwriting Guides.
Please use this announcement as guidance until all applicable underwriting guides are published.
Conventional Conforming Updates
Chapter 1D Property Types
Manufactured Housing Eligibility
Update aligns with Freddie Mac Bulletin 2023-13 to remove eligibility requirement for singlewide manufactured homes to be 10 years old or newer.
Complete guidelines can be found in the Conventional Underwriting Guide, Chapter 1D, Property Types, 1D.1 (i)(i) Manufactured Housing Eligibility
Chapter 1E Underwriting
Data and Delivery Information Accuracy
Resubmission policies clarified for both DU and LPA automated underwriting decisions to support debt income, income decrease or interest rate increase to support loan eligibility.
Complete guidelines can be found in the Conventional Underwriting Guide, Chapter 1E, Underwriting:
- 2 (e) Desktop Underwriter Data and Delivery Information Accuracy
- 3 (c) Loan Product Advisor Data and Delivery Information Accuracy
Chapter 1F Credit
Inquiries and Undisclosed Liabilities
Guidance provided to support methods for undisclosed debt from application through loan closing impacting loan qualification including:
- Letters of explanation for recent inquiries and evidence of any new debt
- Soft Credit Pull or Undisclosed Debt monitoring (UDM) Report
- Review MERS report
Complete guidelines can be found in the Conventional Underwriting Guide, Chapter 1F, Credit, 1F.6 Inquiries and Undisclosed Liabilities
Chapter 1G Assets
Newrez has implemented an overlay for account statements must be dated within 45 days of application for either a DU or LPA underwriting decision.
Complete guidelines can be found in the Conventional Underwriting Guide, Chapter 1G, Assets, 1G.3(a) Financial Institution Accounts
Chapter 1I Employment and Income
Identified a three year continuance of income is required for restricted stock and restricted stock units subject to time based vesting provisions.
Complete guidelines can be found in the Conventional Underwriting Guide, Chapter 1I Employment and Income, 1I.13(x) Restricted Stock Units
Government Underwriting Updates
FHA Update
Clarified a manufactured home with a manufactured home ADU on the property is not eligible whether it is or is not used for storage purposes.
Complete guidelines can be found in the FHA Underwriting Guide, Chapter 2D Property Types, 2D.1(i)(vii) Ineligible Manufactured Home Property Types
VA Update
Borrower eligibility updated to remove reference stating non-occupant coborrowers are ineligible.
Complete guidelines can be found in the VA Underwriting Guide, Chapter 3A, Eligibility, 3A.14 Borrower Eligibility.