Cashout refinance transactions insured by the Federal Housing Administration have been suspended by Bank of America Home Loans.
A spokesman for the company confirmed the move Monday.
The suspension, however, is only temporary.
He noted that the decision was made in an effort to manage lending capacity in the face of “strong” refinance volume, “especially for government refis.”
“In order to manage the volume and ensure that we have capacity available to provide customers with a predicable outcome, we felt it was important to take this temporary measure,” the spokesman stated in a telephone interview.
However, the suspension does not impact FHA 30-year refinances or FHA purchase transactions.
The temporary suspension was first reported by National Mortgage News.
