Two new policy actions will reduce risk associated with cash-out refinance lending, according to the Department of Housing and Urban Development.
The Federal Housing Administration (FHA) will lower its maximum loan-to-value requirements for cash-out refinance transactions. Meanwhile, Ginnie Mae is taking action to manage risks associated with “loan churning” among mortgages insured by the Department of Veterans Affairs.
Read on for reaction from FHA Commissioner Brian Montgomery.
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