Firms Making Predatory Mortgages to Veterans Face Crackdown
- Ginnie Mae takes aim at lenders accused of refinance churning
- Freedom, NewDay among firms facing rules to limit refinancings
World War II veterans attend an event on Sept. 2, 2015, at the World War II Memorial in Washington.
Photographer: Alex Wong/Getty ImagesThis article is for subscribers only.
The U.S. is taking steps to stamp out the practice of servicemembers and veterans being pressured into taking mortgages they don’t need, a move that officials say will lower consumer costs and could lead to financial penalties for lenders.
The actions, which were announced Thursday, stem from a probe by Ginnie Mae, a government-owned corporation that guarantees payment on $2 trillion-worth of mortgage-backed securities. Its bonds include loans made through the Department of Veterans Affairs as well as other federal programs meant for low-wealth or rural borrowers.