Architectural Cases

Social Security payment schedules are set to experience temporary alterations during December and January, primarily impacting recipients of Supplemental Security Income (SSI). These adjustments are a direct consequence of federal holidays and weekend alignments, ensuring that beneficiaries receive their funds on preceding business days. While this will result in two SSI payments in both December and January, there will be no disbursements during the initial week of February. Meanwhile, standard retirement and disability benefits will adhere to their established monthly distribution, which is determined by beneficiaries' birth dates. A notable 2.8% cost-of-living adjustment (COLA) for 2026 will also come into effect, beginning with the December 31, 2025, SSI payments, although some of its benefits may be mitigated by anticipated increases in Medicare Part B premiums.

For approximately 7.5 million individuals relying on Supplemental Security Income, the upcoming winter months will feature a modified payment calendar. Typically, SSI benefits are disbursed on the first day of each month. However, because January 1, 2026, falls on a federal holiday, the Social Security Administration (SSA) will issue January's SSI payment on December 31, 2025, following the usual December 1 payment. This means that SSI recipients will effectively receive two payments in December. Similarly, the February SSI payment will be advanced to January 30, 2026, as February 1, 2026, is a Sunday. This adherence to the SSA's policy of disbursing payments on the preceding business day when the scheduled date falls on a weekend or holiday means beneficiaries will also see two payments in January, but consequently, no SSI payments will be made in the first week of February.

Conversely, the payment schedules for traditional retirement and disability benefits will remain consistent. These benefits are typically distributed on the second, third, or fourth Wednesday of the month, corresponding to the beneficiary's birth date. The SSA has confirmed that this established schedule will continue unchanged throughout 2026, providing predictability for a significant portion of its beneficiaries.

The end-of-December payment will also mark the initial distribution reflecting the 2026 cost-of-living adjustment for SSI. The announced 2026 COLA stands at 2.8%, which is expected to increase the average retired worker's benefit by approximately $56 each month. This adjustment will benefit nearly 71 million recipients. While SSI beneficiaries will observe this increase starting with their December 31, 2025, check, those receiving regular Social Security benefits will see their higher payments implemented in January 2026.

It is important to acknowledge that the advantages of this COLA increase may be partially offset by rising Medicare expenses. Specifically, the standard monthly premium for Medicare Part B is projected to increase to $185 in 2025, an increase of $10.30 from 2024. Furthermore, the annual Part B deductible is set to rise by $17, reaching $257, according to federal statistics. These increased healthcare costs will absorb a portion of the additional funds provided by the COLA, impacting the net financial gain for many beneficiaries.

Beneficiaries of Supplemental Security Income should be aware of the adjusted payment schedule for December and January, which will see an accelerated disbursement due to holiday and weekend considerations. While this provides earlier access to funds and incorporates the new COLA, the absence of payments in early February necessitates careful financial planning. Other Social Security recipients will continue with their regular payment dates, with the COLA increase taking effect in January. All beneficiaries should also factor in the upcoming rise in Medicare Part B premiums and deductibles, which will influence their overall financial outlook.

Unlocking Homeownership: Your Full Financial Picture Matters Now More Than Ever

The Changing Tides: Fannie Mae and Freddie Mac Lead the Way

In a notable policy adjustment, Fannie Mae recently removed its mandatory minimum credit score for a majority of loans processed through its automated Desktop Underwriter system. This change permits loan approvals to be based on more extensive financial information, such as consistent payment histories and verifiable income, rather than a fixed credit score threshold. Concurrently, Freddie Mac's Loan Product Advisor has already been facilitating approvals for individuals without a conventional credit score, provided they can demonstrate reliable alternative payment records, including timely rent and utility bill payments.

Embracing Innovation: New Scoring Models for a Broader View

Adding to these progressive changes, federal regulators have sanctioned Fannie Mae and Freddie Mac to adopt advanced credit scoring models, specifically FICO 10T and VantageScore 4.0. These innovative models are designed to incorporate 'trended' data and alternative financial information, such as rental and telecommunication bill payments. This inclusion allows for a more nuanced and accurate evaluation of a borrower's financial behavior over time, offering a more complete picture beyond static credit scores.

Why the Shift? Addressing Inequity and Expanding Access

The motivation behind these evolving lending standards stems from a commitment to providing a more accurate representation of risk and broadening access to credit for millions of consumers with limited credit histories. The Federal Housing Finance Agency believes these adjustments will foster greater financial inclusion. Past research has shown that credit history and debt-to-income ratios are frequent causes for mortgage denials, and traditional scoring methods can sometimes misrepresent risk. A 2025 study highlighted that women often receive lower credit scores despite comparable or superior default rates, indicating potential biases and inefficiencies in previous credit assessment practices.

Implications for Your Mortgage Application: A New Era of Opportunities

These developments signify several key advantages for prospective homebuyers. Firstly, they introduce more diverse pathways to qualification; individuals with a history of on-time rent, utility, or phone bill payments, but limited credit card history, are now more likely to receive due recognition for their responsible financial conduct. Secondly, borrowers with thin credit files, such as first-time buyers, immigrants, or gig workers, who typically face challenges in achieving high traditional credit scores, may now experience fewer automatic rejections and more approvals based on verified income and cash flow. However, it is crucial to remember that lending standards are not being abandoned. Applicants will still need to meet "ability-to-repay" requirements, demonstrating stable income and manageable debts. Those with higher-risk profiles might encounter higher interest rates or additional documentation requests, rather than outright denial.