The agency’s proposals for increasing the supply of capital to fund Ginnie mortgage servicing rights include advance financing for servicing and exploring non-traditional MSR ownership.
Ginnie Mae MBS volume was boosted by a 41% jump in VA loan deliveries and a 22% boost in FHA. Both programs saw sharp increases in refi volume along with rising purchase-mortgage business. (Includes four data charts.)
The Senate Appropriations Committee has directed HUD to review Ginnie Mae’s overwhelming reliance on outside contractors to perform key func-tions, including oversight, risk management and compliance.
Recent enhancements to Ginnie Mae’s counterparty risk policy are positive because they ensure servicers do their job with greater accuracy and precision, an agency-approved servicer said. Ginnie mandates additional ratings for issuers whose portfolios exceed a certain threshold.
The volume of broker-originated FHA and VA refinance loans pooled in new Ginnie MBS jumped 94.1% from the first to the second quarter. Correspondent production saw the smallest gains among the three channels.
Purchase loans still accounted for over two-thirds of Ginnie loan deliveries, but the volume of incoming refinance loans had a slightly higher increase from June.
Robust homebuying activity brought a huge increase in purchase mortgages into the Ginnie Mae MBS program in the second quarter. Rate-term refinance activity was up sharply.
The agency has lifted a suspension of loanDepot from its multi-issuer securities program, noting the nonbank’s prepayment speeds on VA loans have normalized and are strictly being monitored.
Ginnie Mae's request for comment on proposed changes to pooling requirements for higher-risk VA cash-out refinance loans is generating mixed views from stakeholders.
The purchase-mortgage and refinance sectors saw nearly identical gains in Ginnie volume last month, with most of the refi increase in rate-term transactions.
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