VA revised Topic 3 of chapter 6 the Lender’s Handbook (M26-7). Topic 3 of chapter 6 was revised due to a 2018 rule adoption that implemented section 309 of The Economic Growth, Regulatory Relief, and Consumer Protection Act. The rule adoption set different requirements for cash-out refinancing loans based on the payoff amounts of the loan being refinanced, and categorized cash-out refinancing loans as either a Type I or Type II cash-out refinance. The requirements established in the 2018 rule adoption are now being integrated into the Lender’s Handbook. The changes to the Handbook went into effect October 30, 2024.
Click to view the VA Pamphlet 26-7-Chapter 6-Refinancing Loans: https://www.tenaco.com/wp-content/uploads/2024/11/VA-Pamphlet-26-7-Chapter-6-Refinancing-Loans-11-01-24.pdf
