WASHINGTON, D.C. – (RealEstateRama) – The Mortgage Bankers Association (MBA) applauded President Donald Trump for signing into law the Protecting Affordable Mortgages for Veterans Act of 2019.
This bill will remove duplicative requirements that are causing many mortgages guaranteed by the Department of Veterans Affairs, and refinanced in 2018, to remain ineligible for Ginnie Mae pooling. Importantly, it does not weaken any of the consumer protections that are necessary for refinances to obtain a VA guaranty.
“MBA is pleased that President Trump signed this important piece of legislation that clarifies when Department of Veterans Affairs home loans qualify to be pooled into Ginnie Mae securities,” said MBA President and CEO Bob Broeksmit. “We specifically want to recognize the sponsors of this legislation, Representatives David Scott (D-GA), Lee Zeldin (R-NY), Mike Levin (D-CA), and Andy Barr (R-KY), as well as Senators Kyrsten Sinema (D-AZ) and Thom Tillis (R-NC), in addition to the authorizing committees and congressional leaders, for their efforts.”
The bill also restores the calculation of the 210-day seasoning period to its original form. Specifically, the seasoning period will begin on the first payment due date of the prior loan, rather than the date that the borrower made the first payment. This change will better enable lenders to ensure that they are in compliance with this important consumer protection.
Broeksmit continued, “This issue has significant importance to our members, and we have worked tirelessly with members of Congress, in both chambers and on both sides of the aisle, to alert them of the need to address the ‘VA orphan loan’ problem. Because of this legislation, the VA home loan marketplace can remain liquid, stable, and affordable for our nation’s veterans.”
Rob Van Raaphorst