HUD recently published Mortgagee Letter 2009-32, which provides (1) revised procedures; and (2) reaffirms existing procedures regarding Streamline Refinance transactions. Key revisions include: Seasoning; payment history; Net tangible benefit for the borrower; Maximum Combined Loan-to-Value; New Maximum Mortgage Amount for Streamline Refinances without an Appraisal; Discounts Points no longer included in Existing Debt for Streamline Refinances with an Appraisal; Verification of any assets needed to close; Certification that borrower is employed and has income; and Elimination of abbreviated Uniform Residential Loan Application (URLA). The Mortgagee Letter is effective for new case numbers assigned on or after 60 days from the date of this letter (September 18, 2009).
