Ginnie MBS investors continue to have concerns about mortgages with permanent buydowns.

Guidance provided by VA in late April regarding the end of VASP lacked details on how to address timely applications that needed corrections after the deadline.

Removal activity had increased in each of the previous four quarters.

Rep. Chris Pappas, D-NH, tried to get VASP restarted until Congress passes legislation to allow for a partial claims program at VA. The effort was voted down.

"This change is necessary because VA is not set up or intended to be a mortgage loan restructuring service," said a VA spokesperson.

Correspondent production made up 46.1% of the group’s government-insured volume in the fourth quarter.

The volume of single-family mortgage servicing tied to Ginnie Mae rose 7.3% on an annual basis to $2.541 trillion as of the end of 2024.

FHA activity fell 16.8% while VA production was down 15.1% from January.

The bill would cap purchases under the VASP program to 250 loans annually.

“The government’s being run by great people, they’re going to do great things going forward,” said Mat Ishbia, chairman and CEO of United Wholesale Mortgage.