Ginnie Mae Issuance

Browse articles from all of our Newsletters related to Ginnie Mae Issuance.

November 30, 2018 - Inside FHA/VA Lending

Industry Groups Push for Full Senate Vote on Bright Nomination

A coalition of industry groups strongly urged Senate leadership to bring up Michael Bright’s nomination for president of Ginnie Mae for a vote in the full Senate.


November 30, 2018 - Inside MBS & ABS

Ginnie Focus on Issuer Liquidity and New Subservicing Requirements is Rubbing Some the Wrong Way

Ginnie Mae’s recent focus on issuer liquidity and requirements for using subservicing vendors has received high marks from key industry factions and former regulators, but not everyone is happy.


November 22, 2018 - Inside Mortgage Finance

Tighter Caps on Ginnie Servicers, Issuers Could Be a Challenge, But There Are Benefits As Well

New requirements from Ginnie Mae addressing counterparty risk management by issuers could wind up making the agency’s approval more valuable, while requiring more transparency about their financing of mortgage servicing rights.


November 23, 2018 - Inside MBS & ABS

Ginnie Mae Tightens Issuer-Approval Rules, Imposes Notification Requirements on Subservicer Advances

Ginnie Mae last week issued guidance tightening requirements for entities seeking to become approved issuers, including a credit evaluation to determine their financial strength as well as a new notification requirement for subservicers.


November 16, 2018 - Inside FHA/VA Lending

GNMA’s Liquidity Concerns Prompt Demand for Contingency Plans

Increasingly worried about the financial condition of its largest nonbank issuers amid declining market conditions, Ginnie Mae in late October shot off a liquidity letter to 14 companies, asking them to develop contingency plans. The identity of the firms was not revealed to Inside FHA/VA Lending, but it’s no secret which companies rank among the top echelon of issuer/servicers. The five largest nonbank Ginnie MBS servicers as of Sept. 30 are PennyMac Financial Services, Lakeview Loan Servicing, Freedom Mortgage, Quicken Loans and Mr. Cooper. According to the letter, a copy of which was obtained by this publication, Ginnie wants the companies to develop strategies to right-size their operations. One of the agency’s goals is to lay the groundwork for financial stress tests that all issuer/servicers eventually must meet. Ginnie expects to sit down with the executive management teams of the ...


November 16, 2018 - Inside FHA/VA Lending

Ginnie Mae Continues to Tighten Issuer Standards, Accountability

This week, Ginnie Mae issued an all-participants memo dictating new standards for firms seeking to become issuers, including the stipulation that applicants submit to a corporate credit evaluation. Ginnie said the financial exercise will be “similar to those employed by credit rating agencies.” The evaluation will determine whether an applicant is qualified to be an issuer or whether additional criteria should be imposed even if the basic standards are met. Applicants that rely on a subservicer arrangement will be scrutinized even more. The bulletin also notes that, effective immediately, the agency is implementing new notification requirements for MBS issuers engaged in “certain subservicer advance or servicing income agreements, which do not require prior Ginnie Mae approval, but can impact an issuer’s ongoing liquidity position and financial obligations.” While Ginnie currently permits subservicers to advance ...


November 16, 2018 - Inside FHA/VA Lending

VA Volume Slumps as Streamlined Refi Business Falls Sharply in 3Q18

VA mortgage originations fell significantly in the third quarter of 2018 due to a decline in purchase loans and a sharp drop in refinancing from the previous quarter. Rising interest rates and regulatory restrictions were mostly to blame, said lenders. VA production during the third quarter was $40.2 billion, down 21.0 percent from the quarter ago. Volume in the first nine months of 2018 dropped a mere 0.7 percent from the same time period last year. Purchase loans, which comprised 75.3 percent of VA’s guaranty business, were down 12.6 percent. On the other hand, year-over-year production increased 14.0 percent. VA refinance was down 39.0 percent from the second quarter and 18.1 percent on a year-to-date basis. The decline was fueled primarily by an 80.8 percent drop in VA streamline refis or Interest Rate Reduction Refinance Loans from the second quarter. IRRRL endorsements in the third quarter ... [Charts]


November 16, 2018 - Inside MBS & ABS

Meetings Scheduled for January as Nonbanks Ponder Impact of Ginnie ‘Liquidity Letter’

Increasingly worried about withering loan production and declining profitability of the mortgage industry at large, Ginnie Mae recently sent a letter to its 14 largest nonbank counterparties, asking them to develop strategies to right-size their operations.


November 8, 2018 - Inside Mortgage Finance

With Production and Profits Slowing, Ginnie Mae Tells Nonbank Servicers to Draft Liquidity Plans

Increasingly worried about the liquidity of its largest nonbank issuer/servicers, Ginnie Mae is telling this select group of companies to come up with a plan to address what an agency spokesman characterized as “eventualities.” (Includes one data chart.)


November 2, 2018 - Inside FHA/VA Lending

QM Patch Expiration Could Shift More High-DTI Loans to FHA

Certain potential changes could materially affect origination volume and determine the government-sponsored enterprises’ direction going forward, according to analysts. One of those changes could have a significant impact on the FHA market. Wells Fargo Securities analysts recently looked at three potential developments in the Fannie Mae/Freddie Mac sphere and evaluated their effects on the broader mortgage market. Two of those potential changes – loan limits and guarantee fees – are controlled directly by the Federal Housing Finance Agency, while the third relates to the temporary GSE qualified-mortgage exemption, or “QM patch,” which could affect the FHA market. All three factors loom over the mortgage landscape as the FHFA expects a new director in January 2019, who is likely to be more right leaning and could shift the focus back to shrinking the ...


November 2, 2018 - Inside FHA/VA Lending

GNMA Sees Growing Need for Financing of Nonbank MSR

Ginnie Mae officials would welcome a return of commercial banks to the program, but they are not planning on it. Instead, the agency is looking the other way: at expanding financing options for nonbank portfolios of mortgage servicing rights. The current version of Ginnie’s acknowledgement agreement has been successful, enabling nonbank servicers to arrange MSR financing for virtually their entire portfolios, said Michael Drayne, a senior vice president at Ginnie, during the Residential Mortgage Finance Symposium sponsored by the Structured Finance Industry Group this week in New York. Although a number of banks are financing nonbank servicing portfolios, many are still not participating, he said. Karen Gelernt, a partner at Alston & Bird, noted that many banks continue to have anxiety about what will happen if a servicer defaults on its Ginnie requirements. Speaking as moderator on a panel with ...


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With loan volumes declining, does your shop have plans to enter the non-QM lending market in 2019?

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No, definitely not. We view it has too risky.

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