Washington Report

Advocacy Updates from Washington D.C.

Updates on the VA Loan Program

On December 17, 2018, the Department of Veteran’s Affairs (VA) released an interim final rule addressing changes to VA guaranteed or insured cash-out home refinance loans as understood to be required by the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act. These changes will address when VA will permit cash-out refinance loans, including the testing parameters to determine if the veteran will gain a net tangible benefit from the refinance, as well as recoupment and seasoning requirements. VA will address changes required by the Act for interest rate reduction refinancing loans (IRRRLs) in a separate rule-making. The rule will be effective on February 15, 2019 and any comments must be received on or before that date.

On December 11, 2018, the Department of Veteran’s Affairs (VA) announced that it will no longer require appraisers to include Fannie Mae Form 1004MC in all VA appraisal reports, however same information that was contained in the Form must continue to be included in the appraisal report. This announcement follow’s Fannie Mae’s decision to allow appraisers to input the information contained in Form 1004MC into the appraisal report in other ways.

Interim Refinance Rule

Circular 26-18-29: Market Conditions Addendum to VA Appraisal