Ginnie Mae Tightens Rules on Buyouts of Delinquent FHA/VA Mortgages, Should Smooth Prepay Activity
November 8, 2002
Ginnie Mae this week announced tougher rules on when MBS issuers can buy delinquent loans out of pools – but the change will only cover new deals issued in January and beyond. Wall Street MBS traders have complained for years that Ginnie Mae issuers can freely buy delinquent loans out of existing MBS and repackage them in private-label securities after the