Tag: net tangible benefit

VA IRRRL Term Reduction & Fee Recoupment

Question: I have a veteran wanting to do VA IRRRL, but with 15 yr. term. His interest rate will be 1.375% lower, but his payment will go up. Do fee recoupment requirements apply? Your chart says if PI payment goes up, the veteran can incur no fees? Can you explain requirements to proceed on this […]

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Net Tangible Benefit Requirements for FHA Refinance

Question: Does FHA require a 48-month recoupment as part of the Net Tangible Benefit for closing costs and non-finance MIP when a client is requesting a rate/term refinance? Answer: The 48-month rule you’re referencing is actually a lender overlay and not in FHA regulations. The following are typical exceptions to that overlay, but you’ll have […]

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VA – New Refinance Rules for Buyout During Divorce

Question: Do the new VA rules for Net Tangible Benefits on a cash-out for a primary residence still apply in a divorce situation, where the veteran is buying out the ex-wife? Answer: Yes. The Net Tangible Benefit rule applies even in an equity buyout situation. VA does not offer any exceptions to the new rules. […]

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VA Circular 26-19-22 Clarification and Updates to Policy Guidance for VA Interest Rate Reduction Refinance Loans (IRRRLs) – Dated August 8, 2019 -Updated VA Refinance Comparison Chart

Written by: Tracey Rumsey, Staff Writer VA issued a major update for IRRRL. Any production staff involved in the VA loan process needs to become aware of these important changes. Rule Synopsis: This Circular supersedes Circulars 26-18-1 (and Change 1) and 26-18-13. This Circular and the VA Handbook are now the guideline authority to follow […]

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FHA Updates to Handbook 4000.1, FHA Info # 19-34, July 10, 2019, Effective July 10, 2019

Written by: Tracey Rumsey, Staff Writer FHA is finally starting to issue timely updates to their underwriting manual so that lenders do not need to hunt for rules and then re-verify what they read. This article reviews the latest changes and offers you a chart with the “old” vs. “new” updates. Rule Synopsis: The Federal […]

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