Ginnie Mae and the Dept. of Veterans Affairs are investigating possible predatory lending violation
By Matt Joy, Princeton Mortgage Wholesale
Photo by Benjamin Faust on Unsplash
Back in December Ginnie Mae clamped down on their oversight of VA refinances to protect servicemembers and military veterans from entering potentially risky refinances for their mortgages… however, that was not enough and now a bipartisan group of senators have drafted a bill to help protect VA borrowers for good. The bill, which is properly named the “Protecting Veterans from Predatory Lending Act of 2018”, calls for lenders to certify that all fees associated with the refinance transaction be recouped through lower monthly payments within three years and to protect VA borrowers from “churning” a lender will only receive VA insurance or a Ginnie guarantee if the refinance comes more than six months after the borrower’s initial loan.
HousingWire published a great article on this topic last week. You can check it out here. It has yet to be determined whether the bill will make it through congress, but with bipartisan support and the bill calling to protect our veterans against predatory lending practices… I mean come on. Pass this thing and protect the men and women who’ve protected us… right?!
I’ve been pretty dialed in over the past few months about the goings on over at the CFPB and the never-ending saga of Leandra English v. Mulvaney/Trump Adminstration. Well… there is nothing new to report except that English won’t give up. Two days after a judge sided with the Trump Adminstration… again, English filed an appeal to the Washington D.C. U.S. Court of Appeals. To quote the great Yogi Berra, “It ain’t over till it’s over…” except, it’s pretty much over.
The opinions expressed in this post are the sole view of the writer and do not reflect the opinion of Princeton Mortgage Corporation.