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.
The Structured Finance Industry Group is backing an FHA proposal to revise its annual loan-level certifications and defect taxonomy and a Ginnie Mae proposal on high-risk cash-out refinance loans and erratic prepayment speeds.
Modernization of its mortgage securitization platform, compliance and counterparty risk will be the focus of Ginnie Mae’s 2019 Summit next week. Nearly 800 industry stakeholders are expected to attend.
Ginnie Mae’s latest guidance raising the minimum servicing spread will have little impact because most servicers already retain well above the minimum requirement, according to analysts with Keefe, Bruyette & Woods.