Effective February 10, 2023
On December 7, 2022, Freddie Mac released Bulletin 2022-25 which included a new seasoning requirement for cash-out refinances. On Q Home Loans will require that all loans delivered on or after 02/10/2023 to follow the new Freddie Mac Cash-Out Refinance seasoning requirements stated below.
When proceeds of a cash-out refinance Mortgage are used to pay off a First Lien Mortgage, the First Lien Mortgage being refinanced must be seasoned for at least 12 months (i.e., at least 12 months must have passed between the Note Date of the Mortgage being refinanced and the Note Date of the cash-out refinance Mortgage), as documented in the Mortgage file (e.g., on the credit report or title commitment).
The seasoning requirement does not apply when:
- The cash-out refinance Mortgage is a special purpose cash-out refinance Mortgage that meets the requirements in Section 4301.6, or
- The First Lien Mortgage being refinanced is a Home Equity Line of Credit (HELOC)
Loan Product Advisor will return a new feedback message to support this update, and we will communicate in a future notification the date on which the new feedback message will be available.
If you have any questions regarding the above, please contact your Account Executive or Lender Support.