A few weeks back, Ginnie issued a request for information on a proposal that would tack on a capital requirement of an additional 25-basis points of an applicant’s Fannie Mae and Freddie Mac obligations.
Despite the fact that PMI has been acting as a reinsurer to Arch Mortgage Insurance (Arch bought some of its assets in 2014 as it gained entry to the sector), PMI has a bare-bones website and a skeleton management crew headed by Ray Chang and Thomas Clancy, who are listed as chief financial officer and chief operating officer, respectively.
Priority Financial still wants a Ginnie eagle and believes it has the financial wherewithal to make grade. “We want to resubmit, but we’ve had no communication from them,” said CEO Mark Shenkman.
Things aren’t back to pre-crisis levels by any means. In 2006, quarterly non-agency MBS issuance averaged over $285 billion every three months. It will take a miracle to reach that level for all of 2021.
It was never entirely clear to conventional lenders why the LLPA was installed in the first place given the relatively low COVID-related forbearance readings on GSE loans.
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