Loan Guaranty: Requirements for Interest Rate Reduction Refinancing Loans

This document makes a correction to a final rule amending our loan guaranty regulations concerning the requirements for Interest Rate Reduction Refinancing Loans (IRRRLs). This document also delays for 14 days the effective date of the final rule. 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. The new effective date is June 7, 1999. These actions are needed because of a lawsuit concerning the final rule.