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November 20, 2025

• Gobble Up the Refis

We are so excited to announce that we will be continuing last month’s refi incentive into November for those that opted in. We saw a nice refinance pickup in October and are hopeful this continuation will keep that momentum going. Reach out to your database and let them know we have “Rates Worth Giving Thanks For.”

• Minimum UW Standards – Updated!

Our Minimum Standards for Submission to Underwriting have been tidied up. Check them out here!

• Depreciating Markets Update

Citi Bank has made updates to their Depreciating Markets list with some changes resulting in 10% LTV reductions. These changes are effective with new registrations on or after 11/23/2025. If you have a jumbo in process with Citi, make sure you lock before this if the property is in a depreciating market. See attached for more details.

Jumbo outlets are continually updating declining markets. Please make sure when quoting jumbos, you are using the exact address so Polly can pick up on the right MSA/County codes to factor these LTV reductions.  It is also important to be cautious when floating as we don’t always get this much lead time on these changes.

• Brokered Loan Updates

Symmetry Lending is no longer being treated as a referral-only product for HELOCs. Future Symmetry HELOCs will require an Encompass file and broker approval (including a completed Mortgage Loan Broker Agreement) in order to collect compensation. Symmetry loans will be subject to the HELOC Compensation Policy.

• Reminder: ALL brokered files need the Mortgage Loan Broker Agreement completed prior to Secondary approving the brokered loan request.

AFR is now known as eLend. We have updated the Broker Comparison Chart and Brokered Loan Products and Contacts to reflect this change.

• Encompass Updates: Hard Stops for CD Requests

To help reduce delays and support more accurate Initial Closing Disclosure (ICD) requests, we will be adding hard stops in Encompass beginning Monday, December 1, 2025. These updates are intended to ensure everything needed is in place before an ICD request is submitted, ultimately making the process smoother for everyone.

Starting 12/1/2025, an ICD request can be submitted once the following items are completed:

1. Document Upload: Title CPL
2. Document Upload: Title Prelim Fee Sheet / Prelim CD
3. Lock Status: Must be Locked
4. Decision Status: Must be one of the following
   • Conditional Approval
   • Resubmittal
   • Approval
   • Clear to Close
5. Branch Selection Requirement:
   The branch will need to indicate whether the ICD should be balanced or not (via the branch selection drop-down within the Closing Request – VDMC form).

If any of the above items are missing, Encompass will prevent the ICD request from being submitted.

Thank you in advance for your cooperation as we continue improving our workflow. These changes will help minimize corrections, reduce unnecessary re-disclosures, and prevent closing delays. Please reach out to ClosingCoordinator@vandykmortgage.com if you have any questions – we’re here to help.

• 2026 License Renewals: Con Ed Information

As a reminder: all LO state licenses expire on 12/31/2025 – if you want to maintain your license(s) and renew for 2026, you must complete your Continuing Education before your renewal can be submitted. Please reach out to Stacey Dettling with any questions or concerns.

• Valligent: Holiday Closures

As a heads up, Valligent is closed on Thursday and Friday, November 27-28 for Thanksgiving. This means orders are not processed on these days. Please plan accordingly!

• Open Enrollment: Happening Now!

Open Enrollment will take place November 17 – November 26! A meeting with Hylant was held on November 19, and the recording will be distributed to all employees for review. Key Updates for This Enrollment Period:

• • Dental coverage will switch to Delta Dental
  • Vision coverage will move to Mutual of Omaha
  • Supplemental coverage will also transition to Mutual of Omaha

Please note: This is the only time to make benefit changes unless you experience a qualifying life event. If you have any specific questions, please reach out to HR@vandykmortgage.com for assistance.

• HR Updates
  • Type 1 and Type 2 diabetes both impact blood sugar, but they differ significantly. Type 1 is an autoimmune disease that usually starts in childhood and requires insulin from the get-go. Type 2, more common in adults, often arises from lifestyle factors and is managed with diet, exercise, and sometimes medication. While Type 1 demands insulin for life, Type 2 can often be controlled with lifestyle changes. Knowing these differences helps tailor effective treatment and prevention. Check out this flyer for more information.
  • Do you have a primary care physician (PCP)? If you don’t, no need to fear! Having a PCP is an important part of maintaining your overall health and it’s never too late to find one. Learn about factors to consider when making your choice, and use your health insurance provider’s search tools to locate a doctor near you. See additional tips here!
• New Hires & Rehires: Welcome!

Andy Hunt (Rehire) – Branch Manager, Branch 565 Billy Nieken – Transaction Coordinator, Branch 350

Danny Andrade – Loan Officer, Branch 350 Sage Tuttle – Loan Officer, Branch 350 Cari Britt – Loan Officer, Branch 723

John Bircher – Branch Manager, Branch 351

John McMahon (Rehire) – Processor, Branch 714

McCall Ranstrom – Transaction Coordinator, Branch 202 Zachary Crockett – Loan Originator, Branch 200

 

Agency Updates

Fannie Mae

BIG NEWS! Fannie Mae Removes Minimum FICO Requirement

Fannie Mae has officially aligned with Freddie Mac and removed their minimum credit score requirement. This means that, with a DU Approve/Eligible, we can now move forward with borrowers who have credit scores below 620 – effective immediately. Our internal matrices are currently being updated to reflect this change.

🔧 DU Update Timing

• Applies to new casefiles created on or after November 16, 2025
• Applies to casefiles resubmitted after November 15, 2025

Relief from Enforcement of Reps & Warrants for Certain Undisclosed Liabilities

Fannie Mae has updated the Selling Guide to allow enforcement relief on representations and warranties related to certain undisclosed non-mortgage debt for loans underwritten through Desktop Underwriter (DU).

Key Highlights:

• Relief applies only to non-mortgage liabilities when the loan receives a final Approve/Eligible recommendation with a DU message granting enforcement relief.
• Mortgage-related debt (e.g., HELOCs, second liens) is not eligible for this relief.
• If all Selling Guide conditions are met, Fannie Mae will not enforce reps and warrants on undisclosed non-mortgage debt obtained by the borrower prior to or on the day of closing.

 

Important Reminder:
This relief does not remove lender responsibility for properly identifying and including liabilities in the DTI or for considering them in underwriting. All regulatory requirements, including Ability to Repay (ATR) and Qualified Mortgage (QM) rules, must still be met.

 

Freddie Mac

Manufactured Home + ADU Now Allowed

Freddie Mac now permits Manufactured Homes with an ADU (Accessory Dwelling Unit), provided the primary dwelling is a multiwide Manufactured Home.

This new flexibility creates additional opportunities for affordable housing solutions involving ADUs attached to qualifying manufactured properties.

 

Automated Rental Income

Starting March 1, 2026, Freddie Mac will allow automated assessment of rental income (reported on Schedule E) through LPA and the Freddie Mac Income Calculator.
When eligible, lenders may also receive rep & warrant relief, reflected on the Income Calculator Certificate or the LPA Feedback Certificate.

 

Refinance Properties Inherited or Legally Awarded

For refinance mortgages where at least one borrower inherited or was legally awarded the property, lenders must include documentation in the loan file showing how the property was inherited or legally awarded (per Sections 4301.2 and 4301.5).

Freddie Mac also clarified the definition of “legally awarded” for greater specificity; however, no requirements have changed.

 

FHA

FHA has eliminated the requirement for Form HUD-92900-B (Important Notice to Homebuyers).

• You may still see the form temporarily in our disclosure packages until ICE removes it from the system.
• The AI Underwriting condition tied to this form has been deactivated, and no further action is required from teams.

We will provide additional updates once the form is fully removed from the disclosure packages.

 

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Upcoming Events and Reminders

Miss a training? You’ll find our monthly newscast and Iron Sharpens Iron recordings in the VDM Vault. Department-specific trainings are shared in their respective Seafile folders.

Don’t forget: you can find invitations on our shared calendar under What’s Happening at VDMC.net (all times posted on the What’s Happening calendar are EST)

• Deal Desk: Every Tuesday @ 1:30pm Eastern
• Origination Nation: Every Monday and Thursday @ 12:00pm Eastern
• Production Roundtable: Tuesday, November 18 @ 2:30pm Eastern  (Check out the recording here if you missed it!)
• VanDyk Mortgage Newscast: Thursday, November 20 @ 1:00pm Eastern
• Iron Sharpens Iron: Tuesday, November 25 @ 11:00am Eastern

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25 Points