Servicers of VA mortgages can offer veterans a new COVID-19 refund modification to help reduce monthly payments as they exit forbearance plans.

According to Ted Tozer, former Ginnie Mae president, the industry was warned ahead of time by the government guarantor of plans to tighten financial requirements for single-family MBS issuers.

FHA servicers are required to screen their portfolios by Aug. 24 for borrowers potentially eligible for the mod.

Borrowers can still qualify for a VA-guaranteed mortgage even if they have gaps in employment due to COVID-19. Lenders are encouraged to use "good judgement and flexibility" while verifying a borrowers income.

The Appropriations Committee is expected to vote today on HUD's FY 2022 budget.

Plagued with years of failed technology modernization initiatives, HUD is turning things around with an IT modernization roadmap deemed a success thus far by HUD's Inspector General.

Outstanding issues include Ginnie Mae's staffing-related challenges and the need to improve IT management.

Delinquency rates remain at low levels for multifamily mortgages in Ginnie MBS, though modified loans accounted for 18% the outstanding market. (Includes data chart.)

The move will allow Ginnie issuers to offer loan modifications that carry a lower monthly payment than the current 30-year term. Also, the agency can test the waters for such a product in the secondary market.