The largest servicing gains in the past year were in servicing for Ginnie Mae, whole loans at nonbanks and in non-agency mortgage-backed securities.

Ted Tozer, a fellow at the Urban Institute and former Ginnie president, said he expects the volume of buydowns in custom single-family pools to explode as lenders take advantage of the rule change.

Beginning June 16, custom single-family pools in the Ginnie II program won’t be subject to the 10% concentration limit on mortgages with buydowns.

Delinquencies on FHA mortgages have crept higher since recovering from the pandemic.

“Fannie Mae and Freddie Mac acting more private but still being in conservatorship might be the best of both worlds,” said Mat Ishbia, president and CEO of United Wholesale Mortgage.

"Individual investor appetites wax and wane over time," but Ginnie isn't seeing a mass pullback in demand, according to Joseph Gormley, executive vice president at the agency.

Ginnie MBS investors continue to have concerns about mortgages with permanent buydowns.

Removal activity had increased in each of the previous four quarters.

Ginnie Mae is instituting a temporary 10% cap on the share of mortgages with buydowns delivered into multiple issuer pools of Ginnie MBS.

Joseph Gormley is the new executive vice president and chief operating officer at Ginnie Mae.