Circular 26-19-05 February 14, 2019
Exhibit A
INFORMATION AND INSTRUCTIONS FOR THE CASH-OUT REFINANCE COMPARISON
CERTIFICATION
IMPORTANT: Please read the information below carefully to help you understand the information presented on
this form. Some sections of the form also contain notes or specific instructions for completing that section.
What is the purpose of this certification?
This form/document is intended to provide the Borrower(s) with a comparison of key loan characteristics on both
an existing loan and a (proposed) cash-out refinance loan. The information provides the Borrower(s) with
information about the overall cost of the cash-out refinance loan and assists in making an informed decision about
whether to proceed with the refinance loan.
Who completes this certification?
The Lender of the refinanced loan must provide the Borrower(s) with completed Sections I and II not later than 3
business days from the date of the loan application. The Lender must then provide the Borrower(s) with
completed Sections IV, V, and VI at loan closing.
The Borrower(s) must review the form and certify via signature that he/she received the information on both
occasions.
Do I need to keep a copy of this certification?
Lenders must maintain copies of all loan origination records of VA guaranteed home loans for at least 2 years
from the date of loan closing. The Borrower(s) should also keep a copy of the certification as part of his/her loan
records.
Sections I and IV – Refinance Loan Comparison
The Lender should complete the Refinance Loan Comparison for both the initial disclosure at application and the
disclosure at closing. Important: For the initial disclosure (e.g., Section I), when possible, the Lender may use
estimated information about the existing loan and proposed loans. If such information is not available or is
incomplete (i.e., current appraised value of the home), the Lender must estimate this information and explain this
to the Borrower.
VA Loan Identification Number (LIN) should be provided for the existing loan and the proposed/new loan. If
the existing loan is not a VA guaranteed or insured loan, the Lender should indicate the type of existing loan (i.e.,
The (Estimated) Impact of Refinance must be shown as an increase or (decrease) from the existing loan to the
Loan Balance reflects the remaining unpaid principal balance for the existing loan, including any second liens or
HELOCS, and the principal balance for the proposed/new refinance loan. For the proposed/new refinance loan,
this amount should include any VA funding fee and other (estimated) closing costs if such costs are financed as
Monthly Payment reflects the total monthly amount of principal, interest, and mortgage insurance (if any) owed
by the borrower on the existing loan and proposed/new refinance loan.
The Lender should indicate the appropriate Loan Type for the existing loan and proposed/new refinance loan
(i.e., Fixed; Adjustable Rate Mortgage (ARM); Hybrid ARM; Home Equity Line of Credit (HELOC)). The
Borrower should consult with the Lender if more information is needed about the listed loan type.
FHA, conventional, etc.).
proposed/new loan.
part of the loan.
3.