Announcement 2019-011: VA Cash-Out AUS Update

Announcement addressing Fannie Mae and Freddie Mac's update to their AUS systems.

du and lpa findings

Fannie Mae and Freddie Mac updated their AUS systems this past weekend in response to VA’s change to cash-out refinances previously announced via Announcements 2019-009 and 2019-006.

As a result of the updates, loans run through DU or LPA prior to February 15, 2019 that received an Approve or Accept score may receive a Refer score if the LTV exceeds 100% on subsequent scores as a result of the updates.

VA Cash-Out loans scoring Refer/Caution through DU/LPA with a message indicating the Refer/Caution is due to the LTV exceeding 100% may follow the below options provided the Refer score is due to this message.

  • For DU loans: The loan may be run though LPA.
    o If the loan scores Accept through LPA, follow the LPA findings.
    o If the loan scores Refer with Caution through LPA, the loan may be manually underwritten in accordance with the VA Handbook.
  • For LPA loans: The loan may be manually underwritten in accordance with the VA Handbook.


If the loan does not meet either the VA Handbook or NewRez guidelines, the loan is ineligible.


On a resubmission, if DU/LPA is returning messages regarding the recoupment and NTB, and the application date was before February 15, 2019, the messages may be disregarded as they apply to loans with applications on or after February 15, 2019. Please note that the NewRez NTB worksheet still must be completed.

Please refer to the Product Profiles page for full details of the VA changes made per VA Circular 26-18-30.