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FHA/VA Refinancing Update

We have updated our FHA and VA product profiles per Streamline and Cash-Out Refinances.

On December 7, 2017 Ginnie Mae issued APM 17-06 regarding the pooling eligibility for refinance loans. The memorandum outlines restrictions for Streamlined and Cash-Out refinance loans pooled on or after April 1, 2018 that will require changes to existing policy.

As a result of the changes and in order to comply with applicable pooling requirements New Penn Financial will be making the following updates to the FHA and VA product profiles as it pertains to Streamline and Cash-out refinances. Loans that do not meet the following requirements must close on or before February 28, 2018.

 

FHA Change Summary:

Streamline Refinances
On the date of the FHA case number assignment at least 210 Days must have passed from the first payment due date of the mortgage that is being refinanced and the change is from closing date to first payment due date as noted above.

Cash-Out Refinances
On the date of the FHA case number assignment:

  • The borrower must have made at least 6 consecutive monthly payments on the mortgage that is being refinanced;
  • At least 210 Days must have passed from the first payment due date of the mortgage that is being refinanced; and
  • If the borrower assumed the mortgage that is being refinanced, they must have made six payments since the time of assumption

Existing Pipeline Loans
Existing pipeline loans that do not meet the above criteria must be closed on or before February 28, 2018. Exceptions will not be made.

Product Profile
Section 2.9 and 2.11 of the product profile has been updated with the above requirements.

 

VA Change Summary

Interest Rate Reduction Loans (IRRRL) and Cash-Out Refinances
On the date of the new loan:

  • the borrower must have made at least six consecutive monthly payments on the mortgage that is being refinanced;
  • at least 210 Days must have passed from the first payment due date of the mortgage that is being refinanced;
  • and if the borrower assumed the mortgage that is being refinanced, they must have made six payments since the time of assumption

Existing Pipeline Loans
Existing pipeline loans that do not meet the above criteria must be closed on or before February 28, 2018. Exceptions will not be made.

Product Profile
Sections 2.6, 2.7 & 2.8 of the product profile have been updated to reflect the change.