Announcement 2021-024 - FHA and VA Product Updates

FHA Updates

  • Added Texas 50(f)(2) determination for Standard and Simple Refi
  • Clarified guidance for FHA forbearance on Streamline Refi

 

VA Updates

  • Credit Qualified IRRRLs: Clarified that a DTI up to 50% DTI is permitted when residual income exceeds 120% or significant documented compensating factors exist
  • Cash-out Refi: Clarified that a DTI >41% and up to 50% DTI is permitted when residual income exceeds 120% or significant documented compensating factors exist
  • Added compensating factors to product profile
  • Clarified that credit qualified IRRRL exists when the PITI increases by 20%
  • Added Texas 50(f)(2) determination for Cash-out Refi

 

Please reference the Credit Policy & Product Development NewRez Lending Library for the updated Product Profile changes outlined in this announcement.