Streamlined Refinancing

Refinancing that omits some of the standard risk control measures and is therefore quicker and less costly.

The rationale for streamlined refinancing is that, while it is an entirely new loan, the information from the previous loan available to the lender retains validity. In addition, valuable information may be available on the borrower's payment history.

The extent to which a lender can offer streamlining depends on how much information and how much discretion the lender has. A new lender that was the original lender and still owns the loan has the greatest leeway. A new lender that was the original lender but is now servicing the loan for someone else has the same information but less discretion. Anew lender that was not the original lender and is not servicing the old loan doesn't have the information needed to justify streamlined refinancing.

See Refinance/Refinancing with the Current Lender.

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References in periodicals archive ?

standard refinancing and enhanced streamlined refinancing options;

The mortgage default pipeline

I'm not certain what it will be, but my guess is it will be some form of streamlined refinancing opportunities,'' Gumbinger said.

TROUBLE LOOMING AS ARM INCREASES KICK IN

A truly streamlined refinancing process would also enable a lender to build note modifications into the mortgage.

Watch these megatrends: what do industry experts see as the big trends that will shape the business in the years just ahead?

More important, their documentation remained fresh, making a streamlined refinancing a slam-dunk.

REFI Roulette

Glory notes that streamlined refinancing guidelines have helped lenders this year.

When combined with the lessened processing and documentation requirements of streamlined refinancings, it made it easier for lenders to close loans early this year.

Handling the refi boom

2 Streamlined refinancing with a nonrisk-based mortgage insurance premium (MIP)

Thus, it appears that in weak markets, many borrowers may be employing the FHA streamlined refinancing program in a desperate attempt to avoid foreclosure by reducing their monthly mortgage payments.

A white paper on FHA refinancings

Previously, Standard & Poor's required title insurance on all first-lien mortgage loans except streamlined refinancings.

S&P Revises Its Title Insurance Criteria for RMBS

While the company can approve conventional mortgages and streamlined refinancings over the Internet, borrowers can also receive underwriting approval on all loans that ACMC offers through its Carson-based call center.

Borrowers in California, Colorado, Nevada, Oregon, Utah and Washington are eligible to apply for streamlined refinancings as well as purchases through ACMC via the Internet or by calling the company's mortgage call center at (800) 840-0333.

Mortgage Approvals Available Via the Internet

The higher premium and closing-cost restrictions imposed on FHA business by the 1990 housing law applies to streamlined refinancings as well, although that is still a sore point between some in Congress and HUD.