"Using third parties to circumvent this insurance feature creates uncertain financial risks for lenders and for Treasury Department’s ongoing financial support of the GSEs," said Edward DeMarco, president of the Housing Policy Council.
The trade group is seeking guidance on a requirement that lenders consider and verify a borrower’s reasonably expected income or assets at or before consummation of a mortgage.
Issuance of Ginnie Mae MBS increased by nearly 9.3% from January to February. The increase was due to a surge in refinancings. (Includes two data tables.)