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Ginnie Mae announces changes to eligibility of VA refinance loans in Ginnie Mae securities in keeping with law protecting veterans from predatory lending
Contact: Douglas Robinson
Douglas.R.Robinson@HUD.gov 
(202) 475-7818
Published Date: 5/30/2018

Today, Ginnie Mae issued an All Participants Memorandum (APM) APM 18-04 announcing implementation of changes to pooling eligibility requirements for Department of Veteran’s Affairs (VA) insured or guaranteed mortgages pursuant to the “Loan Seasoning for Ginnie Mae Mortgage-Backed Securities” provision in the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155 / P.L. 115-174)These changes affect security issuances on or after June 1, 2018, but do not otherwise affect the guaranty or composition of MBS issued before that date.

Under the APM, a refinance loan insured or guaranteed by the VA is eligible for Ginnie Mae securities only if it meets the following condition:

The note date of the refinance loan must be on or after the later of:

a) The date is 210 days after the date on which the first monthly payment was made on the mortgage being refinanced, and

b) the date on which 6 full monthly payments have been made on the mortgage being refinanced.

Refinances that do not meet the condition defined in the APM are ineligible for inclusion in any new pool or loan package in the Ginnie Mae I or Ginnie Mae II MBS Program, including refinances that closed prior to the date of this announcement. Ginnie Mae is engaging with issuers to implement a cure for pools that have been submitted with non-compliant loans.

Ginnie Mae expects that the law will be effective in helping curb abuses that have been identified in connection with certain refinance programs utilized by veterans.

About Ginnie Mae

Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of low- to moderate-income homeowners throughout the country. Ginnie Mae MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.

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