FRC Research · Signal Intelligence
FRC
Signals
Named underwriting intelligence alerts · Updated quarterly · Free data: frc-ofi-data.json
FRC Signals are named, trackable patterns in US mortgage underwriting behavior. When a pattern is significant and sustained enough to affect borrower strategy, FRC issues a named signal.
OFI Historical Chart
Overlay Friction Index · Q4 2024 → Q2 2026
Scale: 0=no overlays (agency min) · 100=extreme restriction ·
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Active Signals · Q2 2026
FRC-TIGHTENING-001
Conservative DTI Compression
Large national banks reducing DTI caps from the 50% range toward 43-47%, creating increased denial pressure for borrowers with back-end DTI between 45-50%. Borrowers in this DTI band should prioritize FHA-focused or portfolio lenders.
Active since Q2 2026 · Severity: Moderate · Affects: W-2 borrowers DTI 45-50%
ACTIVE
FRC-EXPANSION-002
Non-QM Loosening
Portfolio and Non-QM lenders reducing bank statement history requirements from 24 months toward 12 months. Rate premium vs agency products narrowing. Most favorable conditions for self-employed borrowers since Q3 2024.
Active since Q1 2026 · Severity: Positive · Affects: Self-employed, 1099 income
POSITIVE
FRC-RECOVERY-003
SSDI Acceptance Recovery
Fair lending scrutiny driving measurable improvement in SSDI income acceptance. Estimated 71% of lenders now applying agency-standard gross-up, up from ~52% in Q4 2024. Sustained multi-quarter trend.
Ongoing since Q3 2025 · Severity: Positive · Affects: SSDI/disability income borrowers
ONGOING
FRC-STABLE-004
VA Residual Income Strength
VA specialist lenders holding near agency minimums. Residual income methodology providing effective approval pathway for high-DTI veterans. No meaningful overlay drift detected. Most favorable lender category for eligible borrowers.
Stable since Q1 2026 · Severity: Stable · Affects: Veterans, active duty
STABLE
FRC Signals · FRC Research Division · Updated quarterly · Free access · © 2026 FinanceRateCalc
Citation: FinanceRateCalc Research. (2026). FRC Signals Q2 2026. financeratecalc.com/frc-signals.html