The Department of Veterans Affairs has asked the Office of Management and Budget to review a draft final rule that would establish major requirements for guaranteed cash-out refinance loans. The Economic Growth, Regulatory Relief, and Consumer Protection Act, which reformed the Dodd-Frank Act, gave VA the authority to regulate cash-out refis. The agency has 180 days from enactment to promulgate regulations. The final rule sets the parameters of VA cash-out home loans, to include defining net tangible benefit, recoupment and seasoning requirements. The Dodd-Frank reform act and Ginnie Mae have established similar requirements for Interest Rate Reduction Refinance Loans. IRRRLs and, to a much lesser extent, cash-out refis came under scrutiny due to loan churning or serial refinancing. Last year, a small group of lenders targeted servicemembers and veterans with VA loans to ...