Freedom Mortgage Statement on Ginnie Mae Restriction

From the desk of Stanley Middleman:

On June 1, 2018, Ginnie Mae (GNMA) restricted Freedom Mortgage and two other GNMA issuers from using VA loans to create GNMA multi-lender pools. This restriction, beginning July 1, is for the purpose of creating prepay transparency for MBS investors. Freedom Mortgage continues to be an approved GNMA issuer, remains authorized to pool all GNMA products, and continues to be able to put VA loans into custom pools.

Freedom Mortgage stands firmly against the practice of loan churning and is committed to acting in the best interests of our nation's veterans. For this reason, we welcome the increased transparency for MBS investors, and are completely aligned with GNMA in this pursuit. Over the last several months, we have been working closely and cooperatively with GNMA to make sure that Freedom's prepay speeds are in line with other market participants.

At Freedom Mortgage, we know the value of MBS investors to our industry and have a great appreciation for the importance they bring to the mortgage system. Fortunately, the new legislation signed by President Trump last week has significantly leveled the playing field for both MSR investors and MBS investors, whose interests in slower prepay speeds are now completely aligned. We support the new legislation and commend GNMA for their diligence in protecting the MSR and MBS investor.

Freedom Mortgage will continue to be a leading GNMA issuer and servicer, and we will continue to offer the same full line of products we do now. The only true change will be enhanced transparency for the MBS investor, which will make our industry stronger. I'm delighted we will have the opportunity to demonstrate our commitment to this new level of transparency.

We believe in our veterans, and we will continue to honor their service by providing them with the best loan programs they could hope for from our industry.

Stanley Middleman
CEO
Freedom Mortgage Corporation