Loan Guaranty: Requirements for Interest Rate Reduction Refinancing Loans

This document amends our loan guaranty regulations concerning the requirements for Interest Rate Reduction Refinancing Loans (IRRRLs). Under the final rule, generally to obtain an IRRRL the veteran's monthly mortgage payment must decrease. Also, the final rule provides that the loan being refinanced must not be delinquent or the veteran seeking the loan must meet certain credit standard provisions. We believe these changes are necessary to ensure that IRRRLs provide a real benefit to veterans and protect the financial interest of the Government.