LINDON, Utah, Feb. 13, 2018 /PRNewswire/ — After a recent article was published in Bloomberg, the CEO of Low VA Rates, Eric Kandell, applauded the reporting of the author, Joe Light, for being one of the first to show the full story behind the issue of loan churning.
In the article, Mr. Light wrote, “Not all of the lenders are necessarily churning loans themselves. Ginnie Mae says some are making mortgages with rates far above those of other lenders, in effect setting up the borrower for a refinance shortly after the initial loan is made.”
According to Mr. Kandell, this statement is at the heart of why loan churning exists in the first place, and he commended Ginnie Mae’s response, as outlined in Mr. Light’s article.
The warning letters Ginnie Mae sent to nine lenders required that they respond with a detailed plan to reduce their significantly above-average rate of refinanced loans. Failure to comply will see the lenders exiled from Ginnie Mae’s traditional bond program.
Regarding these letters, Mr. Kandell also referenced the recent legislation introduced last month by Senators Warren (D-MA) and Tillis (R-NC) when he said, “This is the private sector fixing itself instead of the government getting involved.”
As a demonstration of further support for private sector solutions, Mr. Kandell recently joined a new movement, called Veterans Deserve Better, that examines how the legislation from Senators Warren & Tillis may actually harm our veterans.
About Low VA Rates
Low VA Rates is a leading lender for VA home loans. They help both active and prior members of the United States military get great rates on their mortgage so affordable homeownership is a reality for all servicemen and women.
For more details, please contact:
Director of Marketing
Low VA Rates
Tel: (866) 569-8272 ext. 521
SOURCE Low VA Rates
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