Ginnie Mae Launches Task Force To Protect Veterans
Ginnie Mae looking to stop aggressive marketing tactics from lenders
It’s been nearly a month since Ginnie Mae announced that it was launching an investigation into mortgage lenders that targeted service-members and veterans for quick and risky mortgage refinances. This came after a letter from Sen. Elizabeth Warren who cited a report which covered complaints from veterans about Department of Veterans Affairs mortgage refinancing.
Now, Ginnie Mae and the VA are launching a task force to “address mortgage refinancing issues” surrounding VA loans.
Sen. Warren’s letter claimed there were lenders “aggressively and misleadingly marketing the refinancing of mortgage backed by the Department of Veteran Affairs, generating fees for themselves at the expense of veterans and American taxpayers.” This prompted the investigation.
The “Joint Ginnie Mae – VA Refinance Loan Task Force” will focus on looking at critical issues, important data and lender behaviors related to refinance loans. They’ll also determine what programs and policy changes should be made by the agencies, ensuring these loans don’t pose a risk or burden to Veterans. One area of concern is “loan churning” where a lender convinces an existing borrower to refinance their mortgage.
Additionally, Ginnie Mae said 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.”
