Ginnie Mae reveals new requirements for VA refinances
Continues fight against predatory lending
Under the new guidelines, all refinance loans insured or guaranteed by the VA are only eligible for Ginnie Mae securities if it meets both of the following conditions:
1. The date is 210 days after the date on which the first monthly payment was made on the mortgage being refinanced.
2. The date on which six full monthly payments have been made on the mortgage being refinanced.
These changes will go into effect for all security issuances on or after June 1, 2018, but do not affect the guaranty or composition of MBS issued before that date.
“Ginnie Mae is engaging with issuers to implement a cure for pools that have been submitted with non-compliant loans,” the company said in its release. “Ginnie Mae expects that the law will be effective in helping curb abuses that have been identified in connection with certain refinance programs utilized by veterans.”