Ginnie Mae and the Department of Veterans Affairs have announced additional measures to curb serial refinancing of VA loans. Testifying before a House Veterans Affairs subcommittee this week, officials from both agencies said the latest measures will complement guidelines Ginnie issued last year to deal with the loan churning problem.
A former FHA commissioner called for the restructuring of the agency as a government corporation within the Department of Housing and Urban Development with its own separate appropriation, budget control and risk-management capabilities.
Panelists at an Urban Institute event this week concluded that there can’t be a housing finance reform discussion without including the FHA. Carol Galante, former FHA commissioner during the Obama administration, said it’s important to make sure changes to the government-sponsored enterprises don’t unintentionally impact the FHA.
The origination of reverse mortgages fell by 7.3 percent on a sequential basis in the third quarter of 2017 in the wake of changes made to the program by FHA.
FHA saw many of the policies under the previous administration shelved during the first year of the Trump administration, including a proposal for a 25 basis point reduction in the annual mortgage in-surance premium, while waiting for a new commissioner to head the program.
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