Subject: VA Refinances - either they are IRRRL or cash-out, NOT
rate/term - tip of the day
Good Morning
Today is Friday, February 03, 2012
All wholesale staff is available
Turn times are 24 hours.
Tip of the day- VA Refinances - either they
are IRRRL or cash-out, NOT rate/term
Due to the
recent VA DU update we’ve been receiving a lot of exception requests for VA DU
Refers.
In reviewing
these exception requests, we’re seeing a common error on the VA Refinances.
A number of these VA Refi’s have been incorrectly registered and
underwritten (with DU findings) as rate/term refi’s. VA only allows
rate/term refi’s on special circumstances, when the veteran is refinancing a
construction loan or installment sales contract.
If the
veteran borrower is paying off anything but a current VA loan, the VA considers
the transaction a cash-out.
If were simply doing a rate/term to pay off a current Conventional or FHA loan, the VA still considers this a
cash-out. In other words, if you are paying off ANYTHING but a
current VA loan the loan must be registered and underwritten as a VA cash-out.
Thank
You!
Neil
Johnson
Gateway
Mortgage Group
National
TPO Operations Manager
4201
N. State Hwy 161
Irving,
TX 75038
Office:
972-908-3390 ext. 118
fax#
918-858-8392