Conventional Cash-Out Refinance Transactions Discontinued

April 27, 2020rashtonBulletin

Overview

Due to recent Fannie Mae/Freddie Mac guidance related to cash-out refinances where borrowers request forbearance assistance, effective immediately and until further notice, Carrington Mortgage Services, LLC (CMS) will no longer offer cash-out refinance transactions under the conventional loan program.  As CMS cannot foresee when a borrower will request forbearance assistance for this loan program, there is substantial risk of not being able to sell the loan at a profitable price to Fannie Mae/Freddie Mac at this time.

CMS will not accept any new loan submissions for conventional cash-out refinance transactions. All loan submissions in the pipeline that are not currently locked will be withdrawn from the pipeline. All loans currently locked must close prior to the lock expiration date. No lock extensions will be granted.

Contacts

Please contact your Account Executive or Account Manager with any questions.

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