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WBK Industry News - Federal Regulatory Developments

VA Provides Instructions for Completion of VA Form 26-8923, Interest Rate Reduction Refinance Loan Worksheet

In their Circular 26-17-12 dated April 12, 2017, the Department of Veterans Affairs (VA) clarified the requirements regarding completing VA Form 26-8923, Interest Rate Reduction Refinancing Loan Worksheet (worksheet).  According to Circular 26-17-12, there have been numerous questions regarding the correct way to complete the worksheet since the implementation of the Truth in Lending Act-Real Estate Settlement Procedures Act Integrated Disclosure (TRID).  The notice specifically relates to:

  • Amount of the existing loan balance allowable (Line 1).
  • Principal reduction from veteran (Line 2).
  • Maximum allowable discount points (Line 5).
  • Maximum allowable closing costs (Line 8).
  • Maximum allowable closing costs (Line 11).
  • Maximum loan amount (Line 18)

The instructions become “…effective for all Interest Rate Reduction Refinance Loan applications originated (initial Fannie Mae Form 1003 application date) on or after July 2, 2017.”

VA Circular 26-17-12, which contains detailed instructions, may be accessed here.