Homebridge is updating our VA IRRRL policy regarding fee recoupment and payment test requirements. These updates apply to all pipeline transactions.
Fee Recoupment
Fees must be recouped within 36 months or less, NO exceptions.
- Homebridge will no longer allow an exemption to this requirement when the loan is being refinanced from an ARM to Fixed or if the new loan has a term reduction
Payment Test
The principal and interest payment on the new loan must decrease; the P&I cannot increase
- A term reduction or converting from an ARM to a Fixed are no longer eligible as an exemption to this requirement
Summary
There are no exceptions to the below on IRRRL transactions:
- Fees must be recouped with 36 months or less, and
- The principal and interest payment must decrease
The IRRRL guidelines and the IRRRL Quick Reference Guide have been updated and posted on the Homebridge website at www.homebridgewholesale.com
If you have any questions, please contact your Account Executive
