Ginnie Mae takes steps to squash VA loan churning

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The churning of loans backed by the Department of Veterans Affairs has long been a thorn in Ginnie Mae’s side, as the agency has worked for three years to curb abuses by VA lenders. Now, Ginnie taking yet another step to squash abuses, announcing Thursday that it is moving forward with a proposal to remove VA-backed cash-out refinances with high loan-to-value ratios from its flagship securities.