Effective Tuesday, June 25, 2019, all VA IRRRL’s submitted to Carrington Mortgage Services, LLC (CMS) must have a 36 month or less recoupment of fees. This applies to all VA IRRRL’s regardless of any other benefits to the borrower. Specifically, loans with term reductions and payments going up are now ineligible for an IRRRL. As VA provides more clarity around this subject we will update our guidelines accordingly.
|36 Month Recoup||Rate Reduction|
|ARM to Fixed||Yes||At least .50%|
|Term Reduction||Yes||At least .125%|
|Fixed to Fixed||Yes||At least .50%|
|No Term Reduction||Yes||At least .50%|