GMFS Change to VA Cashout Loans
After reviewing additional clarification of Ginnie Mae APM 19-05 and Chapter 24 of the Ginnie Mae Guide, GMFS will cap ALL High LTV VA Cashout loans at 90%. This is an update to our August 14, 2019 announcement (below for reference).
Effective Immediately, GMFS will not accept new locks on VA Cashout loans with an LTV over 90% (including funding fee).
Please contact the Lock Desk with any questions.
(August 14, 2019 Announcement)
VA Refinance Changes – Effective September 1, 2019
In accordance with Ginnie Mae’s APM 19-05: Revised Pooling Eligibility Requirements for VA Refinance Loans published on 8/1/2019
GMFS is notifying lenders of the following changes to VA Refinances:
- The previously published VA Seasoning Requirements are now applicable to ALL VA Refinances regardless of the previous mortgage type.
- Ginnie Mae announced Additional Pooling Restrictions for High LTV VA Cash-Out Refinance Loans.
Any VA Cash-out with a LTV that exceeds 90% at the time of origination and where the borrower converts any amount of home equity into cash is not eligible for sale to GMFS closed after September 1, 2019.
- If debts are paid off and borrowers do not receive cash in hand then > 90% is permitted
Please reference the Ginnie Mae APM 19-05 and Chapter 24 of the Ginnie Mae guide for more information regarding these changes