HUD issued Mortgage Letter 2009-08 on Thursday March 12th changing the LTV/CLTV limits on cash-out refinances. Effective April 1, 2009 the LTV of any cash out refinance will be limited to 85%.
HURRY ACT NOW! 
These changes will only affect case numbers assigned after April 1, 2009. If you have any FHA refinances you are currently working on you must act quickly and get your case number ordered or will be subject to the new guidelines.
The CLTV will also be capped at 85% for any new subordinate financing. However, there will be no CLTV restrictions for re-subordinate or modified subordinate financing. This will enable those borrowers who have an existing 2nd to still take advantage of the low rates.
The good news is that this only a temporary limit and FHA will continue to monitor the housing market in addition to its own portfolio to determine whether they will keep these changes permanent.
For more changes released by HUD click here to read the entire Mortgage Letter 2009-08.
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