Items Tagged with 'Ginnie Mae'

ARTICLES

  • Ginnie Mae takes steps to squash VA loan churning

    Will move forward with proposal to exclude high LTV loans from securities
    The churning of loans backed by the Department of Veterans Affairs has long been a thorn in Ginnie Mae’s side, as the agency has worked for three years to curb abuses by VA lenders. Now, Ginnie is taking yet another step to squash abuses, announcing Thursday that it is moving forward with a proposal to remove VA-backed cash-out refinances with high loan-to-value ratios from its flagship securities.
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  • Ginnie Mae reveals plans to stress-test nonbank lenders

    Requests industry feedback on proposed methods and impact
    In the last decade, Ginnie Mae has seen what it calls a “significant transformation” in the type of players that participate in the issuance of its mortgage-backed securities, with the bulk of transactions now being handled by nonbank lenders. To address the situation, Ginnie recently revealed plans to institute stress tests for major nonbank lenders that would assess their ability to perform under adverse conditions over a two-year period.
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  • Ginnie Mae removes loanDepot's VA loan restrictions

    Reinstates lender's ability to participate in all bond programs
    After nearly six months of being restricted from participating in some of Ginnie Mae’s mortgage bond programs as part of the agency’s crackdown on lenders for Department of Veterans Affairs loan churning, loanDepot is back in the game. Ginnie Mae announced Friday that it has removed the mortgage bond restrictions it placed on loanDepot earlier this year.
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  • Former CFPB official whose blog posts sparked racial scandal lands gig at HUD

    Trump appointee Eric Blankenstein will handle Ginnie Mae matters for HUD
    Eric Blankenstein was a senior official at the CFPB when racially charged blog posts from his past emerged, sparking outrage – and an internal investigation – at the agency last year. Now, Blankenstein has landed a new role within the Trump administration, joining HUD’s Office of General Counsel as a senior counsel tasked with working on Ginnie Mae matters.
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  • MBA Secondary: FHA, Ginnie Mae, VA and USDA leaders outline policy updates

    Discuss VA churn, DACA eligibility, upgraded technology and more
    The leaders of the FHA, VA, USDA and Ginnie Mae who spoke on the government lending update panel at the MBA Secondary Conference on Tuesday are well aware that lenders and investors find working with their agencies discouragingly hard. Their session reflected the work they’re doing to change that experience, and outlined important policy revisions.
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  • VA lenders subpoenaed as investigators explore whether veterans are being overcharged for their mortgages

    Authorities look into allegations that military veterans are being aggressively pursued for refis
    At least eight lenders that issue VA loans have been hit with federal subpoenas, Politico reported Tuesday. The move commences an investigation by the Department of Veterans Affairs Office of Inspector General and the U.S. attorney in the Eastern District of New York into whether lenders are overcharging military veterans for mortgage loans – a charge that’s been hovering over the industry for nearly two years.
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  • Ginnie Mae considering changes to VA loan rules as refinances continue to soar

    Requests industry input on prevalence of VA cash-out refinances
    For more than 18 months, HUD, Ginnie Mae, and the VA have been investigating whether certain lenders are aggressively targeting service members and military veterans for quick and potentially risky refinances of their mortgages. Ginnie Mae even went so far as to issue new rules for VA loan refinances, restricting how soon a loan could be refinanced after its original origination date. And while Ginnie Mae says that those changes have made a positive impact, the agency is also now stating that more changes may be necessary to get the pervasiveness of VA loan refinances under control.
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  • Massachusetts mortgage company founder jailed for defrauding Ginnie Mae out of $2.5 million

    Mortgage Security founder Robert Pena gets 32 months in prison
    The founder and president of a defunct Massachusetts mortgage company will spend nearly three years in prison after admitting to defrauding Ginnie Mae out of approximately $2.5 million. Court documents show that starting in 2011, Mortgage Security founder Robert Pena began diverting money borrowers sent to MSI into private bank accounts, which he then used to pay for personal and business expenses.
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