Mortgage credit scoring options are expanding. Fannie Mae and Freddie Mac have broadened access to VantageScore® 4.0 for eligible conventional loans, while the Federal Housing Administration (FHA) is preparing to accept VantageScore 4.0 and FICO® Score 10T alongside Classic FICO beginning January 1, 2027. These developments do not mean Classic FICO is disappearing. They do […]
On September 2, Freddie Mac issued Bulletin 2026-12, introducing several updates that are effective immediately and may provide additional flexibility for mortgage sellers. One notable change adds a written verification of employment (VOE) as eligible documentation for an automated income assessment used to determine eligibility for representation and warranty relief related to income calculation accuracy. […]
Mortgage lenders are approaching an important appraisal reporting deadline. Beginning November 2, 2026, Fannie Mae and Freddie Mac will require UAD 3.6 for all new appraisal reports submitted through the Uniform Collateral Data Portal (UCDP). The Uniform Appraisal Dataset (UAD) is a standardized industry dataset for appraisal property reporting. Although UAD 3.6 has been available […]
Fannie Mae’s new artificial intelligence (AI) and machine learning (ML) governance framework went into effect for Seller/Servicers on August 6, 2026 (Lender Letter LL-2026-04). While the guidance directly targets industry participants selling to or servicing for Fannie Mae, its operational reach extends heavily into the third-party vendor ecosystem. As lenders implement required risk management policies, […]
The Federal Housing Administration (FHA) is considering a new approach to documenting and servicing partial claims and Payment Supplements. On July 20, 2026, FHA published a draft Mortgagee Letter proposing a Reinstatement Advance Payment (RAP) Demonstration for stakeholder review and feedback. If finalized, the demonstration would provide FHA-approved mortgagees with an alternative to the separate […]
The 21st Century ROAD (Renewing Opportunity in the American Dream) to Housing Act became law on July 11, 2026, establishing a broad new framework intended to increase housing supply, reduce development barriers, and expand access to affordable homeownership and rental housing. The bipartisan law brings together dozens of housing-related reforms affecting federal housing programs, residential […]
New approved lending areas create expanded opportunities for eligible Native American borrowers and participating lenders HUD Broadens Geographic Eligibility for Section 184 Lending HUD's Office of Native American Programs (ONAP) has expanded the approved lending areas for the Section 184 Indian Housing Loan Guarantee Program, adding new counties where eligible American Indian and Alaska Native […]
What servicers need to know as implementation begins The Department of Veterans Affairs (VA) has announced that servicers may begin submitting loans under the new VA Partial Claim Program beginning June 15, 2026. The announcement represents a significant milestone in the implementation of a foreclosure prevention program authorized by Congress through the 2025 VA Home […]
How Senate Bill 26-189 reshapes AI compliance expectations for lenders and financial institutions Colorado captured national attention in 2024 when it became the first state to enact a comprehensive artificial intelligence law governing the use of AI in consequential decisions, including lending, housing, employment, and insurance. The original legislation established an expansive compliance framework for […]
What the elimination of disparate impact liability could mean for lenders A Fundamental Shift in Fair Lending Interpretation The Consumer Financial Protection Bureau has finalized significant amendments to Regulation B under the Equal Credit Opportunity Act (ECOA), introducing a meaningful shift in how fair lending risk may be defined and enforced. Most notably, the rule eliminates disparate impact liability under ECOA, […]
