Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

Cash-Out Mortgage Refinancings Hit Hurdle as U.S. Tightens Rules

Aug. 1, 2019, 3:53 PM

The Trump Administration is shrinking the amount of cash-out mortgage refinancing allowed through the U.S. Department of Housing and Urban Development, looking to reduce risk amid an increase in borrowers using their homes as piggy banks.

The Federal Housing Administration will cut the maximum loan-to-value ratio it allows for refinancing to 80% from 85%, according to a statement released by HUD on Aug. 1. That gives the FHA, which offers loans to first-time and minority homebuyers, the same cash-out limits as Fannie Mae and Freddie Mac.

“We are taking another important step to support sustainable homeownership that builds wealth for ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.