VA Activity

Browse articles from all of our Newsletters related to VA Activity.

January 18, 2019 - Inside FHA/VA Lending

Plan Afoot to Reintroduce VA ‘Orphan Loan’ Measure

Congress reportedly plans to reintroduce legislation that would restore Ginnie Mae eligibility for hundred-million dollars’ worth of so-called orphan VA streamline refinance loans. H.R. 6737, Protect Affordable Mortgages for Veterans Act of 2018, was passed by the House by voice vote on Sept. 26 last year and was sent to the Senate, where it was stalled on a technicality. The bill aimed to clarify new seasoning requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (S. 2155) that specifically applied to VA’s Interest Rate Reduction Refinance Loans and which became effective upon enactment. The requirements were designed to curb churning of VA loans that were triggering unusually fast prepayments in Ginnie Mae mortgage-backed securities. Some lenders and brokers were soliciting homeowners to refinance their VA mortgages more than once to ...

January 18, 2019 - Inside FHA/VA Lending

VA Stakeholders Struggle With Interim Cash-Out Rule

More clarity is needed with regards to the Department of Veterans Affairs’ proposed changes to its rules on cash-out refinances, VA lenders said. Most lenders are confused by the regulatory language on the interim final rule published a month ago in the Federal Register. Some warn that the rule may hurt VA borrowers. The rule is out for comment until Feb. 15, the same day it becomes effective. The rule is intended to curb abusive lending practices of cash-out refinances even as consumer preference for such loans grows. It separates cash-out refis into two types. Type 1 is a loan being refinanced that is already guaranteed by VA and where the new loan amount is equal to or less than the payoff amount of the original loan. Type 2 cash-out loans are those in which the amount of the principal for the new loan is larger than the payoff of the refinanced loan. Under the interim final rule, both types of cash-outs would be ...

January 4, 2019 - Inside FHA/VA Lending

Around the Industry

Market Condition Addendum to VA Appraisals Dropped; Farm Bill Maintains Local Eligibility for USDA Rural Housing Programs.

January 4, 2019 - Inside FHA/VA Lending

VA Develops Red Flag Rule to Combat Identity Theft

The Department of Veterans Affairs’ Loan Guaranty Service issued guidance to help detect, prevent and mitigate identity theft in connection with VA mortgage loans.

January 4, 2019 - Inside FHA/VA Lending

Stakeholders Cite Flaws in VA’s Cash-Out Interim Rule

There are certain weaknesses in the Department of Veterans Affairs’ interim final rule on VA cash-out refinance loans that need to be ad-dressed to ensure borrowers and investors are protected from loan churning and other predatory lending practices.

December 20, 2018 - Inside MBS & ABS

Analysts Positive on VA’s Interim Rule on Cash-Out Refinancing but Fear Loopholes Could Inflict Harm

The Department of Veteran Affairs’ interim final rule on cash-out refinancing appears to be a positive move for borrowers and investors, especially for higher coupon MBS but potential loopholes could seriously weaken it, analysts warned.

December 14, 2018 - Inside FHA/VA Lending

Around the Industry

Mortgage broker trade group introduces NAMB All-In. Genworth launches risk-based pricing engine. VA updates fee-cost schedule. Industry groups pressure Senate to confirm Trump nominee for GNMA.

December 14, 2018 - Inside FHA/VA Lending

VA Announces 2019 Loan Limits, Baseline Limit Rises 6.9 Percent

The Department of Veterans Affairs has announced new VA loan limits for 2019, a 6.9 percent increase from last year.


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