Tag: Cash-out

Forbearance Created Second Lien – Is Client Eligible for Cash-Out?

Question: My client exercised forbearance due to COVID.  The servicer filed a second mortgage on the property for the payments missed.  They are now out of deferment and have made 3 monthly payments on time.  Are they able to do a cash-out refinance and pay off the second mortgage? Answer: Please see and review questions […]

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Waiting Period for a Cash/Out After a Rate/Term

Question: My client did a cash-out refinance to pay off debt. Rates have gone down further, so now they are considering a rate/term refinance.  Is there a required waiting period? MC Refinance Chart – All Agencies Answer: There is no established waiting period, other than you or your lender may have to pay a premium […]

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VA Circular 26-20-25 Change 1, Impact of CARES Act Forbearance on VA Purchase and Refinance Transactions, September 15, 2020, Effective immediately.

Written by: Tracey Rumsey, Staff Writer How to guide your clients who exercised their Forbearance rights under the CARES Act will be an ongoing topic for mortgage professionals.  In this update VA clarifies the seasoning requirements. Rule Synopsis: Effective date September 15, 2020 Summary Circular 26-20-25 is changed as follows: Page 3, Paragraph 6 d. […]

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Refinance – Title Reporting Judgment Due to Past Due HOA Fees

Question: The title report shows a judgment for past due HOA fees. Can this be satisfied through the cash-out refinance proceeds or does it need to be paid off prior to closing? Answer: There is no real direction in the Fannie or Freddie selling guide that prevents you from using the cash-out proceeds to pay […]

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Freddie Mac Selling Guide Updates – Bulletin 2020-36 – Dated September 2, 2020 – Updated “Grossing Up Income Chart”

Written by: Lloyd Rutherford, Staff Writer Freddie Mac is getting back into the rhythm of guideline changes and clarifications.  This update includes some important changes that may have you considering using Fannie Mae for some types of income! Rule Synopsis: Freddie Mac is updating their selling guide for a variety of topics. This article will […]

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