Certain aggregators of FHA loans are reportedly refusing to purchase FHA streamline refinance loans, fearing shoddy underwriting on the original loan might raise compliance issues down the road. How widespread is the problem is unclear but an industry consultant, who was tipped off by other aggregators, said the problem seems more of a servicing nature, rather than origination. Prior to 2010, FHA lenders originated many streamline refis with seller-funded downpayment assistance. Many of these loans ended up with high default rates, prompting FHA to eliminate seller-funded DPA and to tighten the FHA streamline refi program. Streamline refi originations fell and the program saw very little activity until the FHA revived the program with changes during the crisis to spur lending and help FHA borrowers refinance. Streamline refis do not require full underwriting. The basic requirements are that the mortgage to be refinanced must be FHA-insured, current on the ...