Ginnie Mae is considering a risk-sharing pilot that would have private capital absorb some of the potential losses on FHA loans securitized through the agency. In remarks at the Structured Finance Industry Group conference in Las Vegas recently, Michael Bright, executive vice president and chief operating officer with Ginnie, said no decision has been made on any credit-enhancement structure, as consultations with stakeholders are still ongoing. “We are actively looking at structures we can put in place where we bring in private capital to provide a [partial] guarantee,” explained Bright, Ginnie’s acting president. “The FHA is going be involved in a lot of them.” A risk-share partnership between FHA and private credit enhancers not only would protect the Mutual Mortgage Insurance Fund but reduce taxpayer risk as well, observers said. The risk-sharing concept would have private mortgage insurers assuming ...
Ginnie Mae is considering changes to the existing pledge agreement that allows mortgage-backed securities issuers to borrow against servicing rights. Revising the acknowledgement agreement between Ginnie, issuers and third-party creditors would ensure that nonbank participants would have sufficient liquidity to make timely payments to investors, said Michael Bright, executive vice president and chief financial officer of Ginnie Mae. In remarks at the recent Structured Finance Industry Group conference in Las Vegas, Bright said the change aims to strengthen Ginnie’s ability to oversee its issuer base, which has shifted from large regulated banks to mostly unregulated nonbanks. Nonbanks filled the void after a contingent of large banks exited the FHA market due to concern about the government’s use of the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act in ...
Gordon Albrecht, a senior director at specialty servicer FCI Lender Services, told IMFnews the new CFPB rules, in general, mean “more work and more servicing costs.”
The nation’s subservicing specialists increased the dollar volume of their contracts by a scant 0.5 percent in the fourth quarter, a sign that the market may be easing somewhat. But anecdotal evidence suggests there’s more gas left in the out-sourcing tank.
India and the Philippines “are subject to relatively higher degrees of political and social instability and may lack the infrastructure to withstand political unrest or natural disasters,” Nationstar said.
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