Mortgage Firms “Churning” Refinance Loans to Veterans

A government agency is targeting lenders who aggressively push military veterans to refinance their home loans, leading the borrowers in some cases to rack up thousands of dollars in unnecessary fees. Ginnie Mae, the government-owned corporation that guarantees certain mortgage securities, said it is planning to discuss with at least half a dozen lenders their refinance practices. It is also contemplating civil legal action against some lenders, and recently has formed a “Lender Abuse Task Force” with the Department of Veterans Affairs.