VA Refinance Update

On May 24, 2018, the President of the United States signed into law the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155 / P.L. 115-174).

This includes The Protecting Veterans From Predatory Lending Act of 2018 (the Act), a measure designed to protect Veterans from predatory lending practices known as “loan churning” or “serial refinancing”, when obtaining a VA-guaranteed refinance loan.

As a result New Penn Financial is updating guidelines for all VA refinance transactions including Interest Rate Reduction Refinance Loans (IRRRLs) in response to Ginnie Mae APM 18-04. The following updates are being made and are effective immediately for new applications and existing pipeline loans. All VA refinance transactions must meet the following:

Seasoning requirements for all refinance transactions will require the note date of the new refinance transaction to meet the following:

• The date on which 6 full monthly payments have been made on the mortgage being refinanced; and
• The date that is 210 days after the date on which the first monthly payment was made on the mortgage being refinanced