Announcement 2020-014: Conforming Product Updates

Conforming product updates, effective immediately.

Fannie Mae sel-2019-09

NewRez will align with the following updates in Fannie Mae Announcement SEL-2019-09

  • Clarification for inclusion (or exclusion) or a bridge loan payment in the monthly debt obligations and DTI for loan qualification.
  • Non-applicant debt clarification.


In addition, Fannie Mae has published 2019 Titling Requirements for Manufactured Homes containing information on titling manufactured homes as real property for each state.


Freddie mac 2019-22

NewRez will align with the following updates in Freddie Mac Bulletin 2019-22:

  • Clarification and guidance for income-based resale restrictions:
    • 2-unit eligibility
    • Cash-out refinance eligible with subsidy provider or program administrator approval
    • Down payment calculation
  • Guidance for appraisal adjustments, recognizing that large adjustments are common and acceptable in rural markets.
  • Condominium Projects with approved Project Waiver Requests (PWR) are eligible as long as the PWR does not expire within 120 days after the Note date.


Freddie Mac 2019-25

NewRez will align with the following updates in Freddie Mac Bulletin Mac 2019-25:

  • Updates to rental income for properties that have not been in service for a full tax year.
  • No-Cash-Out Refinance: clarified that proceeds may be used to pay down junior liens (that were used to acquire the property). Remaining balance must be subordinated.
  • Frozen credit: No more than one credit repository may be frozen.
  • A Leave and Earnings statement may be used for verbal communication of employment and may be dated 120 days prior to the Note date (previously 30 days).


In addition, the following updates have been made to the product profiles:

  • Properties listed for sale must be taken off the market before the Note date (previously the application date).
  • Added barndominiums and shouses as ineligible, unique property types.


Please reference the NewRez Product Profiles for the changes outlined in this announcement.