The U.S. Senate approved fiscal 2020 spending packages for government agencies. Some $400 billion has been set aside for new guarantees on FHA single-family mortgages.
Ginnie Mae is now targeting mid-tier issuers and servicers for stress testing to gauge their financial strength and ability to weather adverse economic conditions.
The White House has nominated FHA Commissioner Brian Montgomery as HUD deputy secretary. Meanwhile, interim Ginnie President Maren Kasper is stepping down by the end of next week.
Ginnie single-family MBS issuance rose 12.8% from July to $50.41 billion, the highest monthly production figure since September 2016. (Includes two 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.
The trade group has urged Ginnie Mae to treat issuer stress testing as just “one tool among many,” in which results serve as the basis for further analysis and engagement rather than as a driver for enforcement.
The Treasury has recommended Congress empower Ginnie Mae to provide “last position” guarantee on MBS backed by conventional home loans and au-thority to adjust its guarantee fee.
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