“This program will facilitate much-needed liquidity for issuers while improving the stability of the government-backed reverse mortgage market,” said Sam Valverde, Ginnie’s acting president.

The new plans from FHFA focus on efforts for rural markets, manufactured housing and first-time homebuyers.

The market leader was Mr. Cooper, which at Sept. 30 had 61.9% of its assets invested in MSRs.

Tom Rettinger, chief portfolio risk officer at CrossCountry Mortgage, noted that prepayment models were built for a more balanced interest rate environment.

Payoffs accounted for 89.1% of total loan liquidations from Ginnie MBS in the third quarter.

CHLA acknowledges that the shift at Ginnie will require additional funding for the agency.

The share of mortgages in forbearance increased from 0.34% as of the end of September to 0.47% at the end of October, according to the Mortgage Bankers Association.

Most of the damage came at Rocket Mortgage and Rithm/Newrez, which took hits on the asset value of their MSRs.

One analytics official said he expects changes to be made to the capital guardrails.

Prior to the second quarter of 2024, lenders participating in the MBA survey posted losses, on average, for eight consecutive quarters.