Fannie Mae and Freddie Mac are moving ahead with a long-anticipated shift in how creditworthiness is evaluated in the mortgage process, signaling a major change for lenders, borrowers, and the broader housing finance system. The government-sponsored enterprises have confirmed plans to adopt VantageScore as an approved credit scoring model and to transition from the traditional tri-merge credit report to a bi-merge framework, marking one of the most consequential updates to mortgage underwriting in decades.
When the Federal Reserve announces a decision on interest rates, the immediate headlines often focus on markets and policymakers, but the real impact reaches far deeper into everyday financial life. From savings accounts and credit cards to mortgages and investment portfolios, changes — or even pauses — in Fed policy shape how money moves through the economy and how consumers experience borrowing and saving.
Freddie Mac significantly increased its multifamily lending activity in 2025, reinforcing its role as a key source of liquidity for rental housing at a time when affordability pressures and demand for apartments remain elevated. The government-sponsored enterprise’s expanded footprint reflects a strategic response to persistent housing shortages, rising renter costs, and the growing importance of stable financing for multifamily developers and owners.
A senior Federal Reserve official has signaled growing openness to additional interest rate cuts this year, adding momentum to market expectations that monetary policy may shift more decisively toward easing if economic conditions continue to soften. The remarks, delivered amid ongoing debate over inflation progress and labor market resilience, suggest that policymakers are increasingly comfortable with the idea that restrictive rates may no longer be necessary for as long as previously assumed.
The non-qualified mortgage market is expected to enter a more mature and disciplined phase in 2026, as issuers and originators adjust to shifting capital markets, evolving borrower demand, and heightened scrutiny around credit performance. After several years of rapid growth followed by volatility, industry participants say the next chapter for non-QM lending will likely emphasize consistency, credit quality, and sustainable execution rather than aggressive expansion.
In the past before the market changed, it was common practice to list retirement funds on the 1003 at either 70% of the vested account value for conventional loans or 60% of the vested value if a government loan. As long as the borrower wasn’t utilizing the account funds for their downpayment or closing costs, we didn’t need to document the terms of withdrawal. However, dependent upon the type of retirement account in question, we may need documentation in our file justifying the amount of funds listed for reserve.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Recently, I have noticed that there are few misconceptions about how we underwriters go about determining if a borrower is qualified for the mortgage for which they have applied. Now I know there are several loan officers, not to mention realtors who would swear that we underwriters rely solely on our psychic abilities to determine if a borrower is approvable and I’m sure that a lot of the processing staff would also agree that we are proficient at this sort of thing, I base this assumption on the quality of file we usually get from an underwriting standpoint, by this I mean no employment information filled in on the 1003
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
I read Bonnie’s blog from Monday and just burst out laughing. Bonnie and I have been friends for about six years and have spent many a night sitting across the table with a beer, discussing the mortgage industry. She was an underwriter and then, I was a loan officer.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Definition: Proposed Construction These are properties pre-approved for mortgage insurance prior to the beginning of construction, defined as the first placement of concrete or other permanent materials.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
As we continue to become a lending industry mitigated with financial reform, we continue to question the usefulness of technology tools that perpetuated the abandonment of underwriting and lender responsibility, where overall mortgage risk assessment is concerned.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
I don’t know about you but it just seems to go from bad to worse. May home sales statistics were the slowest ever and June doesn’t seem much better. I have seller’s listing their homes hoping that low interest rates will give pop to the market and buyers are just taking their time.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Definition "Under Construction" Property. These are properties in which the first placement of concrete or other permanent materials has begun, but construction is not yet 100% complete.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
When origination staff hears the words financial reform, it generally evokes a groan signifying that things just got a little more difficult where qualifying a borrower is concerned. On the other hand, there is underwriting sounding off with a sigh of relief because finally FHA and company will put into writing what underwriters have fought to put into practice for the past 3 years and that is the return to prudent underwriting practices that existed pre-AUS.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Summer’s here, seems like everybody’s on vacation and the real estate market is slow. Now is the perfect time to start building business for the future. I remember when I was a loan officer that there were certain times of the year that loan production dropped.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Definition: Existing Construction < 1 year old from Certificate of Occupancy Issue Date These properties are 100% complete at the time of appraisal. "Complete" means everything is complete including the installation of buyer preferences (flooring, appliances, etc.), utilities are on and fully functioning and all site improvements completed at the time of appraisal (Ready for Occupancy). If no repair or correction conditions are made by the appraiser, the appraisal serves as the final inspection.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Written By: Stacey Sprain
As an FHA originator, processor or underwriter, it’s likely that in the ongoing foreclosure market you’ll run across a HUD REO loan at some point. The purpose of this multi-part article is to provide you with some useful information to help in your endeavors.