Lawmakers Express Support for Bright’s Nomination as Ginnie Head
July 27, 2018
Michael Bright’s quick, effective response to the VA loan-churning problem that led to rapid prepayments in Ginnie Mae mortgage-backed securities earned kudos from senators during his confirmation hearing this week. Judging by the positive responses of members of the Senate Committee on Banking, Housing and Urban Affairs, Bright, the administration’s choice to lead Ginnie Mae, will likely get the job. Bright received praise particularly for the swift disciplinary action he took against lender/issuers that were targeting and misleading VA borrowers into repeated refinancing without any clear benefit. Nine lenders were directed to take corrective actions while three of the worst offenders were barred from the agency’s multi-issuer security pools. Bright joined Ginnie Mae in July 2017 as executive vice president and chief operating officer. Two months later he began an investigation into rapidly prepaying VA loans ...