{
  "schema": "https://financeratecalc.com/frc-signals.html",
  "published": "2026-05-28",
  "updated": "2026-05-28",
  "next_update": "2026-08-31",
  "citation": "FinanceRateCalc Research. (2026). FRC Signals. financeratecalc.com/signals.json. CC BY 4.0.",
  "license": "CC BY 4.0",
  "active_signals": [
    {
      "id": "FRC-TIGHTENING-001",
      "name": "Conservative DTI Compression",
      "status": "active",
      "severity": "moderate",
      "started": "2026-Q2",
      "affects": "W-2 borrowers DTI 45-50%",
      "description": "Large national banks reducing DTI caps from 50% toward 43-47%. Borrowers in 45-50% DTI range face elevated overlay denial risk at conservative lenders.",
      "recommendation": "Route 45-50% DTI borrowers to FHA-focused or portfolio lenders."
    },
    {
      "id": "FRC-EXPANSION-002",
      "name": "Non-QM Loosening",
      "status": "active",
      "severity": "positive",
      "started": "2026-Q1",
      "affects": "Self-employed, 1099 income",
      "description": "Portfolio and Non-QM lenders reducing bank statement history requirement from 24 months toward 12 months. Rate premium vs agency products narrowing.",
      "recommendation": "12-month 1099 history now sufficient at many Non-QM programs."
    },
    {
      "id": "FRC-RECOVERY-003",
      "name": "SSDI Acceptance Recovery",
      "status": "ongoing",
      "severity": "positive",
      "started": "2025-Q3",
      "affects": "SSDI/disability income borrowers",
      "description": "Fair lending scrutiny driving SSDI gross-up acceptance from 52% (Q4 2024) to 71% (Q2 2026). Sustained multi-quarter improvement.",
      "recommendation": "SSDI borrowers have more lender options than 18 months ago. Still verify gross-up application before applying."
    },
    {
      "id": "FRC-STABLE-004",
      "name": "VA Residual Income Strength",
      "status": "stable",
      "severity": "stable",
      "started": "2026-Q1",
      "affects": "Veterans, active duty service members",
      "description": "VA specialist lenders holding near agency minimums. Residual income methodology providing effective override for high-DTI veterans.",
      "recommendation": "VA-eligible borrowers with high DTI should seek VA specialist lenders using residual income methodology, not simple DTI cap."
    }
  ],
  "archived_signals": [
    {
      "id": "FRC-TIGHTENING-000",
      "name": "2025 Peak Tightening",
      "status": "resolved",
      "period": "2025-Q1 to 2025-Q2",
      "ofi_range": "48-52",
      "resolution": "Rate expectation shift Q3 2025 drove overlay loosening."
    }
  ],
  "ofi_current": {
    "value": 47,
    "period": "Q2 2026",
    "state": "MODERATE",
    "url": "https://financeratecalc.com/overlay-friction-index.html"
  }
}