VA issued Circular 26-19-22, updating, clarifying and consolidating guidance related to Interest Rate Reduction Refinance Loans (IRRRLs). Specifically, the Circular discusses the standards imposed by the Economic Growth, Regulatory Relief, and Consumer Protection Act (i.e. fee recoupment, net tangible benefit, loan seasoning, and disclosure standards) and VA’s ability to guarantee IRRRLs. VA also updated guidance with respect to loan seasoning for IRRRLs (based on the recently enacted Protecting Affordable Mortgages for Veterans Act of 2019). The updates, clarifications and consolidation are effective immediately.
Click Here to View the VA Circular 26-19-22
Click Here to View the VA Circular 26-19-22, Exhibit A
