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U.S. GOVERNMENT
INFORMATION
Op
115TH CONGRESS REPORT
2d Session HOUSE OF REPRESENTATIVES 115-983
PROTECT AFFORDABLE MORTGAGES FOR VETERANS ACT
OF 2018
SEPTEMBER 26, 2018.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. HENSARLING, from the Committee on Financial Services,
submitted the following
REPORT
[To accompany H.R. 6737]
The Committee on Financial Services, to whom was referred the
bill (H.R. 6737) to amend the Economic Growth, Regulatory Relief,
and Consumer Protection Act to clarify seasoning requirements for
certain refinanced mortgage loans, and for other purposes, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
PURPOSE AND SUMMARY
On September 7, 2018, Rep. Lee Zeldin introduced H.R. 6737, the
Protect Affordable Mortgages for Veterans Act of 2018. H.R. 6737
would amend section 306(g) of the National Housing Act (12 U.S.C.
1721(g)(1)), as amended to provide a technical fix so that recently
executed loans refinanced by the U.S. Department of Veterans Af-
fairs (VA) Home Loans can remain eligible for pooling in the Gov-
ernment National Mortgage Association (Ginnie Mae) securities.
BACKGROUND AND NEED FOR LEGISLATION
The goal of H.R. 6737 is to provide a technical correction that
will allow previously executed loans refinanced by VA Home Loans
to remain eligible for pooling into securities issued by the Govern-
ment National Mortgage Association (GNMA or Ginnie Mae).
In recent years, the proportion of VA guaranteed loans in Ginnie
Mae pools has grown, and in 2017, Ginnie Mae noted unusually
fast prepayment speeds in its securities. Ginnie Mae's internal re-
search and work with the VA shows a market for VA loans that
is somewhat saturated with lenders and brokers making dozens of
calls and sending dozens of letters to veterans in an attempt to get
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