VA mortgage lender NewDay USA has received approval to issue VA mortgages as a Ginnie Mae servicer-seller.
NewDay can now issue Ginnie Mae I and II securities for FHA multi-issuer securities. The firm said its participation in the Ginnie Mae programs would benefit military borrowers who want to buy a home through NewDay’s Operation Home, as well as those who are looking to refinance.
Rob Posner, founder and chief executive officer of NewDay, said that Ginnie Mae’s review of the company’s prepayment activity has shown a reduction in prepayment speeds, and met Ginnie Mae’s guidelines.
"The Ginnie Mae program provides critical mortgage financing for our nation's veterans and active duty military, and the NewDay USA team values the ability to fully participate in its single-family programs," Posner said. "Our information-based strategy that focuses on analytics and credit risk is unique in the mortgage industry and ensures we produce exemplary portfolio loan performance.
"With today's announcement, military families, who have sacrificed so much for our country, will have the best possible menu of home financing options at NewDay," said NewDay Chairman Thomas Lynch. "I am proud of our team and our culture of serving those who have so bravely served our country."