Announcement 20-0044: Updated CMS Conventional Cash-out Refinance Overlay Requirement


As previously announced, Carrington Mortgage Services, LLC (CMS) reintroduced cash-out refinance transactions under the conventional loan program. To clarify, these transactions are subject to the following guideline overlay.  This change is effective July 6, 2020.

  • Maximum Backend DTI 44%

The pricing engine has been updated to manage the overlay requirements beginning with the initial lock.

Please note that any changes after lock to the DTI parameters will be managed by lock monitoring and may require re-pricing if loan still qualifies. Refer to the CMS Correspondent Rate Guide for additional details and current conventional loan program cash-out requirements.


Please contact with any questions.

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