New rules have been designed to prevent lenders from convincing veterans to repeatedly refinance their VA mortgages over and over.
Veterans will get protection from lenders who try to lure them into refinancing their Department of Veterans Affairs (VA) mortgages according to new rules imposed by the federal government.
Under the regulations, the Government National Mortgage Administration, (Ginnie Mae), will guarantee a refinanced loan only if six monthly payments have been made on the underlying loan and the refinance occurs no earlier than 210 days after the first monthly payment is made on the initial loan. The rules, which take effect April 1, are designed to prevent lenders from convincing veterans to repeatedly refinance their VA mortgages.
Michael Huff, a spokesman for the U.S. Department of Housing and Urban Development (HUD), which includes Ginnie Mae, said more changes are coming. Credit to AARP News
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