There’s work to be done in the remaining months of the current Congress, including funding the government. If that isn’t done by Dec. 16, the government could shut down, and that has spelled trouble for FHA and USDA originations in the past.
The fees, already in place for more than the two years originally mandated, cost veterans $200 million annually, the Community Home Lenders of America says.
Among the areas that need reform, according to two trade groups: There is no secondary market for the loans. Ginnie Mae could remedy that problem by revising its Title I issuer requirements.
While the FHLBanks tout the utility of the system’s status quo, small independent mortgage bankers push a change that would give nonbanks access to FHLB credit without FHLB membership.
Industry trade groups want Ginnie Mae to continue making changes to its risk-based capital requirements for nonbank issuers during the extended implementation period.
The failure of nonbanks as a sector “could spark another crisis and tear at the fabric of the economy,” said Yu Shan, assistant professor of Finance at the Whitman School of Management at Syracuse University.