{"id":46635,"date":"2018-02-09T18:02:14","date_gmt":"2018-02-09T18:02:14","guid":{"rendered":"https:\/\/one.sightlinemg.com\/armytimes\/uncategorized\/2018\/02\/09\/feds-put-9-lenders-on-notice-about-aggressive-misleading-va-loan-practices\/"},"modified":"2026-08-08T03:39:55","modified_gmt":"2026-08-08T03:39:55","slug":"feds-put-9-lenders-on-notice-about-aggressive-misleading-va-loan-practices","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/armytimes\/management\/pay-benefits\/mil-money\/2018\/02\/09\/feds-put-9-lenders-on-notice-about-aggressive-misleading-va-loan-practices\/","title":{"rendered":"Feds put 9 lenders on notice about \u2018aggressive, misleading\u2019 VA loan practices"},"content":{"rendered":"\n

Government officials have put nine lenders on notice that they\u2019ll be kicked out of the primary finance program for VA loans if they don\u2019t stop \u201cloan churning\u201d<\/a> practices that are allegedly hurting veterans<\/a> and putting the benefit at risk.<\/p>\n\n\n\n

\u201cWe really need to defend the VA program,\u201d said Michael Bright, executive vice president and chief operating officer of Ginnie Mae, a government corporation that oversees the process for ensuring the success of the government\u2019s mortgage-backed securities guarantee. Ginnie Mae officials issued the notifications, building on work of a \u201cloan churn task force\u201d that started in September.<\/p>\n\n\n\n

\u201cWe need to make sure that capital is there to support the program. If lenders are abusing it<\/a> with aggressive, misleading marketing and aggressive and misleading refinances, it not only harms veteran borrowers and homeowners, but it harms the capital that is the source for making these loans in the first place.\u201d<\/p>\n\n\n\n

He stressed that these are just a few lenders among many in the VA loan business. Bright declined to identify the lenders who received notifications, citing long-standing Ginnie Mae policy.<\/p>\n\n\n\n

A source familiar with the issue said NewDay Financial, Nations Lending, LoanDepot.com and Freedom Mortgage were among the companies that received the letters.<\/p>\n\n\n\n

NewDay USA and Freedom Mortgage officials declined to comment on whether they had received a notification or what the allegations entail.<\/p>\n\n\n\n

\u201cAs company policy, NewDay USA does not publicly discuss its interactions with regulators, including Ginnie Mae,\u201d according to a NewDay response provided to Military Times. \u201cHowever, the record is abundantly clear that NewDay does not churn veteran loans.<\/p>\n\n\n\n

\u201cNewDay is an outspoken supporter of measures to end this shameful practice.\u201d<\/p>\n\n\n\n

In a statement from Freedom Mortgage, officials said the company is \u201chonored to be one of the nation\u2019s largest VA mortgage providers and we do so responsibly serving the needs of our veterans. We service and close every loan with the top priority of helping our customers.\u201d<\/p>\n\n\n\n

Responses weren\u2019t immediately received from Nations Lending or LoanDepot.<\/p>\n\n\n\t