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4/11/2018

WASHINGTON, D.C. – Ginnie Mae today announced that issuance of its mortgage back securities (MBS) totaled $30.31 billion in March.

A breakdown of March’s issuance includes $28.659 billion of Ginnie Mae II MBS and $1.651 billion of Ginnie Mae I MBS, which includes $1.412 billion of loans for multifamily housing.

MBS issuance for Fiscal Year 2018 to the end of March totaled $216.949 billion. Ginnie Mae total outstanding principal balance of $1.942 trillion is an increase from $1.805 trillion in March 2017.

For more information on monthly issuance, UPB balance, REMIC monthly issuance, and Global Market analysis, visit Ginnie Mae Issuance

About Ginnie Mae
Ginnie Mae is a wholly-owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae mortgage backed securities MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.

Ginnie Mae I MBS are modified pass-through mortgage-backed securities on which registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae I securities can include single family, multifamily, manufactured home, and project construction loans.

Ginnie Mae II MBS are modified pass-through mortgage-backed securities for which registered holders receive an aggregate principal and interest payment from a central paying agent. An issuer may participate in the Ginnie Mae II MBS either by issuing custom, single-issuer pools or through participation in the issuance of multiple-issuer pools, which combine loans with similar characteristics.

 

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3/20/2018

WASHINGTON, D.C. – Ginnie Mae today announced that issuance of its mortgage back securities (MBS) totaled $33.22 billion in February.

A breakdown of February’s issuance includes $31.512 billion of Ginnie Mae II MBS and $1.708 billion of Ginnie Mae I MBS, which provided access to $33.561 billion in capital for single family home loans and $1.387 billion for multifamily housing.

MBS issuance for Fiscal Year 2018 to the end of February totaled $186.639 billion. Ginnie Mae total outstanding principal balance of $1.934 trillion is an increase from $1.798 trillion in February 2017.

For more information on monthly issuance, UPB balance, REMIC monthly issuance, and Global Market analysis, visit GinnieMae.gov.

About Ginnie Mae
Ginnie Mae is a wholly-owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae mortgage backed securities MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.

Ginnie Mae I MBS are modified pass-through mortgage-backed securities on which registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae I securities can include single family, multifamily, manufactured home, and project construction loans.

Ginnie Mae II MBS are modified pass-through mortgage-backed securities for which registered holders receive an aggregate principal and interest payment from a central paying agent. An issuer may participate in the Ginnie Mae II MBS either by issuing custom, single-issuer pools or through participation in the issuance of multiple-issuer pools, which combine loans with similar characteristics.

 

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3/14/2018

Chicago, Ill. and Washington, D.C., March 14, 2018 – The MPF Program recently surpassed $1 billion in mortgage-backed securities (MBS) issued. The MPF Government MBS product was the result of a partnership forged by the Federal Home Loan Bank of Chicago and the Government National Mortgage Association (Ginnie Mae) to issue securities guaranteed by Ginnie Mae and backed by mortgages originated by FHLB member financial institutions. The MPF Government MBS product provides mortgage lenders, particularly smaller institutions, direct access to the secondary mortgage market, and more options when creating mortgage products for their home-buying customers.

The MPF Government MBS product was initially made available only to eligible participating members of the Federal Home Loan Bank of Chicago. Today, it has expanded to six Federal Home Loan Banks that can now offer the MPF Government MBS product to their members. “The interest in the MPF Government MBS product continues to grow helping to make more affordable lending available throughout the country,” says John Stocchetti, Executive Vice President of the MPF Program. The MPF Program’s partnership with Ginnie Mae continues to provide lenders a channel to the MBS marketplace and the ability to choose whether to retain or release servicing on the government loans they originate.

Ginnie Mae developed the first mortgage-backed security in 1970 which allowed for loans to be pooled in a security that could be sold in the secondary market. “This partnership with the Federal Home Loan Bank of Chicago is just the beginning of the productive partnerships that Ginnie Mae’s charter allows and that we intend to leverage in the coming years,” said Michael Bright, Ginnie Mae Executive Vice President and Chief Operating Officer. “These types of programs help to level the playing field for small and local financial institutions, help Ginnie Mae fulfill its core mission, and creates important opportunities for innovation in our mortgage system.”

About the MPF Program
The MPF Program allows eligible Federal Home Loan Bank members to sell conventional conforming, government and jumbo loans to their Federal Home Loan Bank or other investors. To learn more visit fhlbmpf.com. “Mortgage Partnership Finance” and “MPF” are registered trademarks of the Federal Home Loan Bank of Chicago.

About Ginnie Mae
Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.

2/15/2018

WASHINGTON, D.C. - Ginnie Mae today announced that issuance of its mortgage back securities (MBS) totaled $36.41 billion in January.

A breakdown of January's issuance includes $34.611 billion of Ginnie Mae II MBS and $1.795 billion of Ginnie Mae I MBS, which provided access to $36.834 billion in capital for single family home loans and $1.403 billion for multifamily housing.

MBS issuance for Fiscal Year 2018 to the end of January totaled $153.419 billion. Ginnie Mae total outstanding principal balance of $1.924 trillion is an increase from $1.786 trillion in January 2017.

For more information on monthly issuance, UPB balance, REMIC monthly issuance, and Global Market analysis, visit GinnieMae.gov.

About Ginnie Mae

Ginnie Mae is a wholly-owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae mortgage backed securities MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.

Ginnie Mae I MBS are modified pass-through mortgage-backed securities on which registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae I securities can include single family, multifamily, manufactured home, and project construction loans.

Ginnie Mae II MBS are modified pass-through mortgage-backed securities for which registered holders receive an aggregate principal and interest payment from a central paying agent. An issuer may participate in the Ginnie Mae II MBS either by issuing custom, single-issuer pools or through participation in the issuance of multiple-issuer pools, which combine loans with similar characteristics.

2/8/2018

WASHINGTON – Ginnie Mae continues to take steps to address churning in its mortgage-backed security (MBS) program. These efforts are designed to keep mortgage rates affordable for veterans and first-time home buyers, in addition to preserving the liquidity of the security around the globe. To that end, Ginnie Mae has notified a small number of issuers who are outliers among market participants in the Ginnie Mae multi-issuer MBS on the metric of prepayment speeds. Such deviations from market norms are not acceptable and put a veteran earned benefit at risk. This work builds off the “Ginnie Mae – VA Loan Churn Task Force,” which has been ongoing since September 2017.

Issuers who have been notified are expected to deliver a corrective action plan that identifies immediate strategies to bring prepayment speeds in line with market peers. In the event issuers are unable to demonstrate a path to improved performance, said issuers risk being restricted from access to Ginnie Mae multi-issuer pools. Thereafter, those issuers may only have access to Ginnie Mae custom pools.

“We have an obligation to take necessary measures to prevent the lending practices of a few from impairing the performance of our multi-issuer securities, and thus raising the cost of homeownership for millions of Americans,” said Michael Bright, Ginnie Mae Executive Vice President and Chief Operating Officer. “By addressing the anomalous performance of a few lenders, Ginnie Mae is acting to protect veterans, the broader Ginnie Mae program, the American taxpayer and the consumers we serve. We expect issuers receiving these notices to respond quickly, produce a corrective action plan and come into compliance with our program.”

Denise Rohan, National Commander of the American Legion added, “On behalf of two million members of the American Legion, I applaud the efforts of Ginnie Mae to curb misleading mortgage refinancing marketing targeting veterans and the unscrupulous practice known as “churning” – the refinancing of a loan multiple times to generate profits for lenders at the expense of veterans. Aggressive home mortgage churning creates uncertainty for investors and higher interest rates for borrowers. Our veterans didn’t serve their country around the globe in order to be taken advantage of by unscrupulous lenders at home. The American Legion stands with Ginnie Mae and Senators Warren and Tillis as they work to protect veterans from predatory home lending and ensure veterans have an affordable pathway to home ownership.”

Ginnie Mae’s issuance of these notices directly follows recent announcements of program changes, APM 17-06, Pooling Eligibility for Refinance Loans and Monitoring of Prepay Activity, and APM 18-02, Risk Parameters Applicable to Single Family Issuers. These APMs outline acceptable risk parameters for mortgages backing Ginnie Mae securities and ongoing issuer evaluation.

“We are focusing on outliers that are harming Ginnie Mae’s program, not at issuers that genuinely help support responsible lending,” continued Bright. “The vast majority of our issuers fall squarely in the latter category, and we look forward to continuing to work with them to provide refinance opportunities to veterans, rural communities, and low to moderate-income homeowners.” This action comes after Ginnie Mae completed a comprehensive review of issuer performance, which included an in-depth evaluation of prepayment speeds on the MBS pools of individual issuers. This analysis identified a small number of issuers with prepayment speeds that substantially deviate from the mean for an extended period of time.

About Ginnie Mae

Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of low- to moderate-income homeowners throughout the country. Ginnie Mae MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.

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Questions and Answers

 

What does Ginnie Mae mean by “loan churning”?

Ginnie Mae defines loan churning to mean an issuer’s use of a set of market schemes to repeatedly refinance a borrower’s mortgage, often without providing a sufficient, countervailing net economic benefit to the homeowner. This practice of loan churning is hurting the FHA, USDA, and VA loan programs, and, by extension, the low- to moderate-income borrowers, rural Americans, and veterans who participate in them.

What impact do churning practices have on Ginnie Mae or its stakeholders?

The vast majority of the loans originated under the FHA, VA, and USDA housing programs are securitized through the Ginnie MBS platform. The churning practices witnessed in recent years are damaging to Ginnie Mae MBS because they cause rapid refinancing of loans in Ginnie Mae securities. This causes investors of all stripes across the globe to withdraw capital from the Ginnie Mae market, which results in higher than necessary borrowing rates for all federal housing program borrowers.

How can churning be addressed in the Ginnie Mae program?

Previously, Ginnie Mae implemented policy changes to diminish the economic incentive associated with refinancing borrowers within months of their initial home purchase (See APM 17-06). Most recently, with APM 18-02, Risk Parameters Applicable to Single Family Issuers, Ginnie Mae took steps to address its concerns regarding the impact of loans in its pools with fast prepayments speeds. Ginnie Mae believes these steps are necessary to keep mortgage rates affordable for veterans and low- to moderate- income borrowers, in addition to preserving the liquidity of the security around the globe.

Some form of a net tangible benefit requirement for refinancings is also an important part of solving this problem, and the VA has been evaluating a range of potential policy actions, including a net tangible benefit test. The idea with such a requirement would be to ensure that the benefit to the borrower is greater than any incremental costs associated with the refinancing terms. FHA did something similar by implementing a net tangible benefit test for refinances in their program. Ginnie Mae’s understanding is that the VA is undertaking a process to identify what makes sense for its program in this area.

Combined, these actions can help ensure a healthy MBS market that provides affordable mortgage rates for FHA, VA and USDA borrowers, and in turn, a continued flow of capital into the U.S. housing market.

What is the primary purpose of APM 18-02 and how does it advance Ginnie Mae’s mission?

The primary purpose of APM 18-02 is to protect the integrity of the Ginnie Mae MBS program and ensure that low- to moderate-income borrowers, veterans, and investors in Ginnie Mae securities are not disadvantaged by the actions of a few outliers.

Multi-issuer securities, by their very nature, trade at a “cheapest to deliver” price. This means that the performance of the worst issuer or servicer often sets the pricing for all other participating issuers in the common security, and therefore the worst can impact the rates for all borrowers who rely on the program. The actions announced in APM 18-02 are being implemented to protect the health of the Ginnie Mae security overall by addressing activity from a few issuers that create pools of loans that materially drag down the average.

Such action is squarely within Ginnie Mae’s historical expertise. In fact, Ginnie Mae’s charter explicitly tasks Ginnie Mae with maintaining and enhancing the liquidity of the secondary mortgage market to ensure the sustained flow of global capital into the U.S. primary mortgage market. This is Ginnie Mae’s primary mission. Ginnie Mae must identify, monitor, and, if need be, implement requirements that maintain the integrity of the common MBS which we administer.

What has been the impact of APM 18-02?

Ginnie Mae MBS have improved in price. Once completed, the analysis suggests that removing outlier loans from Ginnie Mae multi-issuer securities can lower borrowing rates for veterans and FHA and USDA borrowers by as much as a half a percentage point.

What methodology does Ginnie Mae use to determine whether an issuer’s performance is materially worse than its peers as to be an outlier?

Ginnie Mae engaged in a data-driven process of evaluating several aspects of pool characteristics of all issuers against each other. To police our security, Ginnie Mae often choses relative performance, rather than absolute performance, of these metrics because it is the relative performance that suggests outliers. This is similar to so-called “horizontal analysis” performed by prudential regulators.

How many Issuers fall within the category of outlier prepayment speeds?

Under the analysis, only a handful of issuers were shown to be consistent material outliers over an extended period of time. The careful criteria identified market participants whose pool performance clearly and persistently deviates from Ginnie Mae’s norms.

Should Ginnie Issuers be afraid to refinance VA loans that are in Ginnie pools?

Absolutely not. As explained above, Ginnie Mae is concerned with material outliers, not issuers that are genuinely helping to support responsible lending. There are market and borrower dynamics where refinance activity makes absolute sense. Ginnie Mae is here to support the FHA, VA, and USDA programs by bringing capital into the U.S. housing market for these activities. With this APM, however, we are addressing participants in the Ginnie Mae multi-issuer security with prepayment speeds that cannot be explained by economic conditions or market dynamics.

1/22/2018

During a lapse in government funding, Ginnie Mae will reduce staffing to essential personnel levels. Importantly, Ginnie Mae will continue to remit timely payment of principal and interest to investors. There will also be no disruption of essential functions like the granting of commitment authority and support for continued issuance of Ginnie Mae-guaranteed Mortgage Backed Securities (MBS) and REMICs.

Through its standard continuity of operations protocol, Ginnie Mae will notify issuers and other stakeholders to provide specific operational instructions and contact information for the Ginnie Mae personnel that will manage ongoing business matters that arise during this period of lapsed funding.

About Ginnie Mae
Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae mortgage backed securities MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.

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Questions and Answers

 

Ginnie Mae’s Critical and Essential Functions During a Lapse in Government Funding

 

In the event of a government shutdown due to a lapse in government funding Ginnie Mae will continue operations, Ginnie Mae will limit its operations to those functions that are essential to its core operations to avoid any disruption to fulfilling its obligations.

Q: Will Ginnie Mae continue to operate during a shutdown?

A: Yes, Ginnie Mae will continue to operate if the government shuts down. Ginnie Mae’s role in the secondary mortgage market is essential to the market’s stability and liquidity and to maintaining overall economic security and has several employees and functions deemed as such. Therefore, Ginnie Mae employees will continue essential business operations under an emergency exception. Ginnie Mae will have limited staff available to manage business operations and answer questions.

Q: Will issuers be able to get commitment authority during a shutdown?

A: Yes, Ginnie Mae will continue to approve commitment authority.

Q: Can issuers continue to issue securities during a shutdown?

A: Yes, Ginnie Mae will continue to process pools and guarantee securities.

Q: Will investors still receive monthly principal and interest payments?

A: Yes, issuers will continue to make pass-through payments to investors during a shutdown, and all operations to ensure the timely payment of principal and interest continue.

Q: If there is a need for Ginnie Mae to pay out on its guaranty during a shutdown due to a shutdown, can Ginnie Mae do so?

A: Yes, Ginnie MBS carry the full faith and credit of the United States government. Even if there is a temporary government shutdown Ginnie Mae, must honor its guaranty.

Q: If an issuer needs to process a pool, where can it get information about Ginnie Mae’s procedures?

A: For questions about Ginnie Mae policies and procedures, you can consult the Ginnie Mae MBS guide on its website at ginniemae.gov, or contact Ginnie Mae’s pool processing agent, the Bank of New York, Ginnie Mae Helpdesk at 1 (800) GNMA (4662).

12/12/2017

WASHINGTON, D.C. – Ginnie Mae today announced that issuance of its mortgage back securities (MBS) totaled $39.13 billion in November.

A breakdown of November’s issuance includes $37.215 billion of Ginnie Mae II MBS and $1.986 billion of Ginnie Mae I MBS, which provided access to $37.734 billion in capital for single family home loans and $1.467 billion for multifamily home loans.

Issuance in Fiscal Year to 2018 November issuance is $79.341 billion. Ginnie Mae total outstanding unpaid principal balance increased to $1.904 trillion, which is up from $1.894 trillion in October 2016.

For more information on monthly issuance, UPB balance, REMIC monthly issuance, and Global Market analysis, visit www.ginniemae/issuance

About Ginnie Mae

Ginnie Mae is a wholly-owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae mortgage backed securities MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.

Ginnie Mae I MBS are modified pass-through mortgage-backed securities on which registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae I securities can include single family, multifamily, manufactured home, and project construction loans.

Ginnie Mae II MBS are modified pass-through mortgage-backed securities for which registered holders receive an aggregate principal and interest payment from a central paying agent. An issuer may participate in the Ginnie Mae II MBS either by issuing custom, single-issuer pools or through participation in the issuance of multiple-issuer pools, which combine loans with similar characteristics.

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12/7/2017

Today, Ginnie Mae issued an All Participants Memorandum (APM) – APM 17-06 announcing its next step in the continuing effort to address the detrimental loan churning and high prepayment speeds in its securities. “These changes, along with additional measures under consideration, are being made to ensure the continued strength and liquidity of the Ginnie Mae MBS Program,” said Michael Bright, Ginnie Mae Executive Vice President and Chief Operating Officer.

Late last year, through APM-16-05, Ginnie Mae imposed seasoning requirements for streamline refinance loans to address rapid prepayments, which were negatively impacting the performance of certain Ginnie Mae securities. Today’s announcement expands pooling restrictions to cash out refinance loans, and outlines additional measures taken to protect the Ginnie Mae security.

Effective April 1, 2018, streamline and cash out refinance loans can only be pooled into Ginnie Mae I Single Issuer Pools and Ginnie Mae II Multiple Issuer Pools if six monthly payments have been made on the underlying loan and the refinance occurs no earlier than 210 days after the first monthly payment is made on the initial loan. Any covered loans that do not meet these requirements are prohibited from being pooled into Ginnie Mae standard MBS pools.

The announcement also provides details regarding the refinanced loans that are not restricted for inclusion in Ginnie Mae I Single Issuer Pools and Ginnie Mae II Multiple Issuer Pools. To be eligible for Ginnie Mae pools, loans must meet the requirements for a fully underwritten rate term refinance loan under rules set forth by the respective federal housing program or benefit administrator.

Additionally, Ginnie Mae is actively monitoring the pooling activity of issuers to identify behavior that violates these changes. Any Issuer that does not comply with the program requirements will be subject to sanctions, in accordance with the Guaranty Agreement and the Mortgage-Backed Securities (MBS) Guide. “We will continue to work closely with the industry and all of our stakeholders to police our program,” said Bright.

Ginnie Mae is also now increasing the tracking and analysis of prepayment rates. Any issuer with pool performance that appears out of step with market peers will receive increased attention and engagement from Ginnie Mae. Furthermore, prepayment information will now be included in Ginnie Mae’s Issuer Operational Performance Profile (IOPP) scorecard, which is used to evaluate issuers against their peers.

Lastly, Ginnie Mae is reviewing standards for the definition of premium rate loans, which are prohibited for delivery into Ginnie Mae standard MBS pools.

10/19/2017

WASHINGTON, D.C. – Today, Ginnie Mae announced that its mortgage back securities (MBS) issuance totaled $504.58 billion for FY17, which is an all-time annual issuance record. Issuance in FY16 totaled $466.6 billion.

MBS issuance in September totaled $41.58 billion, a decrease from August issuance of $44.13 billion. A breakdown of September’s issuance includes $39.62 billion of Ginnie Mae II MBS and $1.96 billion of Ginnie Mae I MBS, which provided access to $40.25 billion in capital for single family home loans and $1.33 billion for multifamily home loans.

Ginnie Mae total outstanding unpaid principal balance increased to $1.884 trillion, which is up from $1.871 trillion in August 2016. The total principal balance is up year over year from $1.728 trillion at the end of FY16.

For more information on monthly issuance, UPB balance, REMIC monthly issuance, and Global Market analysis, visit www.ginniemae/issuance

About Ginnie Mae
Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae mortgage backed securities MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.

Ginnie Mae I MBS are modified pass-through mortgage-backed securities on which registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae I securities can include single family, multifamily, manufactured home, and project construction loans.

Ginnie Mae II MBS are modified pass-through mortgage-backed securities for which registered holders receive an aggregate principal and interest payment from a central paying agent. An issuer may participate in the Ginnie Mae II MBS either by issuing custom, single-issuer pools or through participation in the issuance of multiple-issuer pools, which combine loans with similar characteristics.

 

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10/13/2017

WASHINGTON, D.C. — Today, the Government National Mortgage Association (Ginnie Mae) and the Department of Veterans Affairs (VA) announce the formation of the “Joint Ginnie Mae – VA Refinance Loan Task Force.”

The task force will focus on examining critical issues, important data and lender behaviors related to refinancing loans and will determine what program and policy changes should be made by the agencies to ensure these loans do not pose an undue risk or burden to Veterans or the American taxpayer.

More specifically, the task force will examine aggressive and misleading refinancing propositions, as described by the Consumer Financial Protection Bureau, and will address loan churning and repeated refinancing. Both agencies agree that VA and Ginnie Mae programs work best when they are used by market participants in ways that provide a benefit to Veteran borrowers and, ultimately, lower Veterans’ costs.

The task force has started its work by examining data and information to ensure loans provide a net tangible benefit to Veteran-borrowers, and consider establishing time frames regarding recoupment of fees associated with refinancing loans.

It will also examine the impact of establishing stronger seasoning requirements for VA-guaranteed loans that are securitized into Ginnie Mae Mortgage Backed Security pools. Additionally, the task force will work to ensure Veterans understand the costs and benefits of refinancing, and ensure robust borrower outreach and education programs are augmented for this purpose.

Ginnie Mae and VA will arrange joint discussions with individual lenders whose demonstrated origination practices may negatively affect Veteran borrowers or increase program costs and risks.

The task force will continue to work collaboratively until concrete solutions have been implemented to eliminate lender behavior that is unhelpful to Veterans and harmful to the American taxpayer.

 
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