On the Hill is NAMB's bi-weekly read on what's happening in Washington and why it matters to mortgage brokers.
Each issue cuts through the noise to bring you the federal policy, legislation, and regulatory moves shaping your business, along with the context and action items you need to stay ahead.
Brought to you by the National Association of Mortgage Brokers, the voice of the broker community since 1973. |
The VA just changed the math on veterans' collection accounts, Freddie Mac opened its condo review tool to brokers, and mortgage rates spiked back toward 7%. Here's what brokers need to know. |
Lead Story: VA Changes How Lenders Count Unpaid Collections |
A small edit with a real underwriting impact. On August 24, the VA issued Transmittal of Change 47, effective August 25, revising Chapter 4, Topic 7 of the Lenders Handbook (Pamphlet 26-7). For a non-medical collection account that has no payment arrangement listed on the credit report, underwriters previously counted 5% of the outstanding balance as the monthly payment. The revised text now counts 5% of the outstanding balance divided by 12 months.
Why it matters: on a $6,000 collection, that is the difference between a $300 counted payment and a $25 one, which can be decisive on a tight debt-to-income ratio. VA described the edit as correcting a minor inconsistency, since the handbook already used the divided-by-12 construction for its student-loan threshold. Medical collections were not touched.
Two things did not change. The borrower must still have re-established satisfactory credit, generally 12 months of satisfactory payments after the last derogatory item was satisfied. And the underwriter must still address the accounts on VA Form 26-6393, Loan Analysis. In VA's words:
"While VA does not require such accounts be paid-off prior to closing if the borrower's overall credit is acceptable, an underwriter must address the existence of the account(s) with an explanation on VA Form 26-6393, Loan Analysis, and justify why positive factors outweigh the negative credit history such accounts represent."
Click here to read more... |
Freddie Mac Opens Its Condo Review Tool |
A timely assist under the tougher condo review regime. Authorized third-party originators can now access Condo Project Advisor and use Project Assessment Lookup (PAL) to check a condo project's status and feedback messages early in the origination process, even before running Loan Product Advisor.
What you can do with it: look up a project to see its status early, use the PAL Summary to see whether it meets the requirements Condo Project Advisor assesses and spot certain unmet ones, and focus your condo review accordingly to save time and cost. With the retirement of the streamlined condo review paths on August 3, getting a read on a project up front is more valuable than ever.
How to get access: your organization must be provisioned through Freddie Mac Access Manager for Condo Project Advisor, and your designated user needs the role "Loan Originator - Corr." To find your administrator, use Access Manager's "Find My Administrator" or call 1-800-FREDDIE.
Click here to register... |
LLPA decisions still pending, and Pulte is back full-time. FHFA Director Bill Pulte said in late August that the agency is nearing the end of its review of certain loan-level price adjustments, with decisions coming soon, but nothing has posted yet. Pulte has turned his attention back to FHFA full-time after his stint as acting national intelligence director, and the review, led by Fannie Mae board member Barry Habib, is aimed at fee relief.
For brokers: LLPAs feed straight into per-loan economics, so this is the FHFA action to watch. LLPA relief is a standing NAMB priority.
Click here to read more... |
Still waiting on a confirmed director. Mark Paoletta has served as acting director since Russell Vought's authority expired August 1, and nominee Brian Johnson is still awaiting a Senate floor vote as Congress returns from recess.
The Bureau's paused 2026 workforce reduction, and the pace of LO compensation and RESPA servicing reform, all hinge on his confirmation, both long-standing NAMB priorities.
Click here to read more... |
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30-year fixed: about 6.66% (Freddie Mac PMMS, week ending August 27), a one-year high.
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Early September: daily pricing jumped further, with Zillow showing 6.74% on September 2 and Mortgage News Daily's index rising into the high-6% range for the first time in over a year, leaving many borrowers seeing quotes at or above 7%.
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What's driving it: renewed escalation in the U.S. war with Iran and the inflation expectations that come with higher oil prices, keeping upward pressure on Treasury yields.
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What your association is focused on:
- Veterans' lending: With Congress back in session, NAMB's call to action on H.R. 9237 is live again. Section 104 would raise VA home loan fees on other veterans to pay for benefits, and NAMB is urging members to weigh in. Complete your Call to Action now...
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Condo relief: NAMB continues to press FHFA on the condo review and reserve-funding changes and is equipping members with resources to prepare their pipelines.
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Ongoing: LO comp reform, LLPA reduction, credit report and credit scoring cost relief, flood insurance improvements, and expanded affordable housing access remain NAMB's 2026 priorities in Washington.
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- Now: H.R. 9237 and whether Section 104's VA home loan fee increases survive. Complete your Call to Action now.
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Soon: FHFA decisions on certain LLPAs, which Pulte says are coming soon.
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This fall: Senate confirmation action on CFPB nominee Brian Johnson, and the pace of LO comp and RESPA servicing reform.
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Mid-September: the Federal Reserve's next meeting, with rate direction in focus as the Iran conflict pressures inflation.
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January 4, 2027: the condo HOA reserve-funding increase from 10% to 15% is set to take effect, the next front in NAMB's delay campaign.
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