Announcement 2021-069 - Clarification to Seasoning Requirements for VA and FHA Streamline and Cash-out Refinances

Please see the below clarification for the seasoning requirements for VA IRRRL and Cash-out Refinance and FHA Streamline and Cash-out Refinance products. The clarification is specific to refinances of mortgages that have been modified (does not cover Construction to Perm loan modifications). Existing seasoning requirements for refinances of non-modified mortgages remain in place.

 

The following guidance for seasoning requirements of modified mortgages has been added to the Newrez VA and FHA Refinance Product Profiles.

 

VA

  • For refinance of modified mortgages, the Note date of the new mortgage must be on or after the later of:
    • The date that is 210 days after the date on which the first modified monthly payment was due on the mortgage being refinanced, and
    • The date on which six (6) modified payments have been made on the mortgage being refinanced

FHA

  • For existing mortgages that have been modified, the first payment due date of the new mortgage must be on or after the later of:
    • The date that is 210 days after the date on which the first modified monthly payment was due on the mortgage being refinanced, and
    • The date on which six (6) modified payments have been made on the mortgage being refinanced.

Newrez processors and underwriters are advised to request additional information to determine whether the current mortgage may have been modified if mortgage payment documentation is not clear. Documentation may include, but not limited to cancelled checks, copy of NOTE or information from current servicer.

 

Please refer to the Newrez VA and FHA Refinance Product Profiles for additional details.