Did I understand this correctly? Does BofA need to follow this?

[LVowner]

I live in LV. A couple of years ago we moved into a new home and are renting our old house. Both homes are financed by Bank of America.

I am interested in refinancing my old house (a rental now) once the new LTV ratio under Making Home Affordable goes live in February. I called BofA and they informed me that I will not be eligible for a refinance as the house was originally owner occupied but is now a rental.

I reviewed Fannie Mae FAQs and came across the following. To me, it looks like I am eligible. However, if BofA won't honor my eligibility, what are my options? Thank you in advance for your feedback and guidance.

"Q58. Is there any requirement that the existing mortgage and the new mortgage represent the same occupancy?

No. The occupancy of the subject property may have changed by the time of the new mortgage transaction. Because the loan represents existing Fannie Mae risk, there is no requirement that the occupancy has stayed the same. This may result in transactions that would not otherwise be permitted under standard guidelines, as follows:

Investment properties that are manufactured housing;
Investment properties that are cooperatives; and
2-4-unit second homes.

These types of transactions are permissible under Refi Plus (DU or manual). All existing restrictions on property types, such as condo hotels, continue to apply. (Note that occupancy changes for cooperative units may be subject to the cooperative’s rules and regulations.) As a general rule, if the existing loan was ineligible at time of delivery to Fannie Mae, the loan is not eligible for Refi Plus (DU or manual). If the loan became ineligible after delivery, the loan is eligible for Refi Plus (DU or manual)."

[TomEason]

LVowner

Thanks for your post and welcome to Loansafe.

Why not simply write them a letter citing the info you posted and informing them they're mistaken. After all, you were told that on the phone by a BOA rep. Do you really believe the reps understand all these programs?

If you cannot get satisfaction, you might also contact the MHA Admin/Escalation Center in Dallas. You can Google the name and get their contact info.

[calgirl67]

The reps at all these banks are village idiots. With the hundreds and hundreds of phone conversations I have had with these idiots, every single time I have been stumped by their stupidity. Like talking to a child.

Could they hire anybody dumber? Seriously...

[NevadaHelp]

Did you ever get clarification from BOA on whether its possilbe to do a HARP 2 refinance if occupancy status changed