The FHA announced this week that it is tightening the loan-to-value requirements for cash-out refinances, citing “the FHA’s need to limit its exposure to undue risk.” According to Mortgagee Letter 2009-08, a borrower’s LTV must be 85 percent or less on any cash-out refi, beginning April 1. The change from an existing 95 percent limit is “being instituted on a temporary... [Includes one graph]