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Ginnie Mae restricts 2 more lenders

Government National Mortgage Association has restricted Freedom Mortgage Corp. and SunWest Mortgage Co. Inc. from including loans insured by the Department of Veterans Affairs in Ginnie Mae I securities or Ginnie Mae II multi-issuer securities.

The restriction will take effect July 1 and will conclude Jan. 1, 2019, according to a June 1 release.

Meanwhile, NewDay USA's restriction to Ginnie Mae II custom pools took effect April 1 and will conclude Oct. 1.

All three mortgage lenders remain authorized to pool loans backed by the Federal Housing Administration and the Rural Housing Service in all eligible Ginnie Mae pool types.

Ginnie Mae disclosed the restrictions a day after it announced changes to eligibility of VA refinance loans in its securities in an effort to protect veterans from predatory lending.

Under the new memorandum, loans eligible for VA backing should have a note date on or after 210 days after the first monthly payment was made or the date on which six full monthly payments have been made, whichever comes later. These changes affect security issuances starting June 1.