Firms Making Predatory Mortgages to Veterans Face Crackdown
- Ginnie Mae takes aim at lenders accused of refinance churning
- Freedom, NewDay among firms facing rules to limit refinancings
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The U.S. is taking steps to stamp out the practice of servicemembers and veterans being pressured into taking mortgages they don’t need, a move that officials say will lower consumer costs and could lead to financial penalties for lenders.
The actions, which were announced Thursday, stem from a probe by Ginnie Mae, a government-owned corporation that guarantees payment on $2 trillion-worth of mortgage-backed securities. Its bonds include loans made through the Department of Veterans Affairs as well as other federal programs meant for low-wealth or rural borrowers.