Ginnie Mae and the U.S. Department of Veterans Affairs (VA) have teamed up on a new initiative to focus on problems related to mortgage refinancing for retired military personnel.
The Joint Ginnie Mae–VA Refinance Loan Task Force is tasked with examining the issues, data and lender behavior related to refinancing and will determine if program or policy changes are required to prevent undue risk being placed on the veterans receiving the refinancing or the taxpayers funding the refinancing. The task force will place a specific focus on aggressive and misleading refinancing propositions identified by the Consumer Financial Protection Bureau and will address questionable practices including loan churning and repeated refinancing.
Ginnie Mae and VA plans to meet with individual lenders that may be engaged in inappropriate refinancing solutions. In a statement, the agencies promised to “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.”