Announcement 2020-016: NewRez Government Updates - FHA and VA

The following summary of updates to the VA and FHA Product Profiles are effective immediately. The updates are clarifications of existing credit policy and product guidelines. Please refer to the Channel Product Profiles for full details.

va product profile

  • Cash-Out Refinance - Clarified Veteran disclosure requirements at application and closing for comparing terms of previous VA mortgage with proposed mortgage.
  • VA IRRRL - Clarified Veteran disclosure requirements at application and closing for comparing terms of previous VA mortgage with proposed mortgage.
  • VA IRRRLs - Removed requirement for verbal verification of employment and existence of self-employed business.

 

fha product profile

  • Refinances (General) - Clarified requirements for determining Adjusted Value on refinances requiring appraisals.
  • Cash-Out Refinance - Clarified mortgage history requirements for all mortgages.
  • Cash-Out Refinance - Included junior liens being paid off with the refinance transaction in the seasoning requirements.
  • Streamline Refinance - Removed the requirement for verification of income and existence of self-employed business for all Non-Credit Qualifying Streamline Refinance transactions.
  • Streamline Refinances - HPML Streamline Refinances must be credit-qualified.
  • Income - Clarified requirements for effective income in mortgage qualification.