Ginnie Mae Issuance

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

April 20, 2018 - Inside FHA/VA Lending

Ginnie Mae Mulls ‘A-Tier’ Issuer Rating to Raise Nonbank Liquidity

Ginnie Mae is considering a tiered rating system to ensure that all participants in its mortgage securities program have sufficient liquidity and capital to meet their counterparty obligations. The agency is still fleshing out the idea of an “A-tier” issuer, which would likely develop into a policy in the near future, said Michael Bright, executive vice president and chief operating officer, during a recent interview with Inside FHA/VA Lending. “An A-tier issuer would be [a company that] has gone above and beyond in helping put together for us a risk management and liquidity plan that does not rely on liquidity providers, and whose defect and cure rates are low,” he explained. Such issuer/servicers also would be well capitalized. Ginnie is developing the metrics for such a system, as well as incentives for the A-tier issuers, Bright said He added that top-rated firms would be eligible for “concierge services” from the ...


April 20, 2018 - Inside FHA/VA Lending

VA Share in Gov’t-Backed Servicing Continued to Grow in Early 2018

The Department of Veterans Affairs home-loan guaranty program continued to account for most of the growth in the Ginnie Mae servicing business during the first quarter of 2018, a new Inside FHA/VA Lending analysis reveals. Total Ginnie mortgage-backed securities outstanding rose to $1.940 trillion as of the end of March, including multifamily MBS and securities backed by FHA reverse mortgages. Some $1.795 trillion of that amount was traditional single-family mortgages, a 1.1 percent increase from the end of last year. The forward-mortgage Ginnie market grew by 7.3 percent over the past 12 months. The amount of VA loans in Ginnie pools was up 13.1 percent from March 2017, nearing the $600.0 billion mark. By comparison, the FHA segment of the Ginnie market was up 4.7 percent from a year ago, hitting $1.085 trillion. Loan performance generally improved in both the ... [Charts]


April 19, 2018 - Inside Mortgage Finance

Nonbanks Gobble Up More of the Agency Servicing Market in Early 2018; Growth Spurts at Ginnie Mae

The steamship that is the nonbank share of the mortgage servicing market showed no signs of changing course in the early months of 2018, a new Inside Mortgage Finance analysis reveals. [Includes two charts.]


April 6, 2018 - Inside FHA/VA Lending

GNMA Chief Confident Agency Will Win Back Investors’ Faith, Trust

Ginnie Mae’s anti-churning efforts have narrowed the spread between Ginnie and Fannie Mae mortgage-backed securities, prompting executives to say things are almost back to normal. In an interview with Inside FHA/VA Lending this week, Michael Bright, executive vice president and chief operating officer at Ginnie Mae, said the market and investors have responded positively to the agency’s efforts to resolve the churning and prepayment problems. “The Ginnie spread has fallen almost half a point and our securities have become more liquid,” he said. “We want to make sure we’re giving investors CPRs (constant prepayment rates) that they can model.” Bright said he cares less about the overall level of prepayment speeds. What he truly cares about is ensuring that when an investor purchases a Ginnie security, the prepay speed is correlated to changes in the interest rates and not the ...


April 6, 2018 - Inside FHA/VA Lending

Issuers Punished for Churning, Barred from Multi-Issuer Pools

Ginnie Mae this week meted penalties to two of the nine issuers that received warnings from the agency for excessive refinancings of VA mortgages. Bloomberg reported that Ginnie barred NewDay Financial’s and Nations Lending’s from the more lucrative multi-issuer mortgage-backed securities pools, forcing them to issue custom pools. The restrictions became effective immediately. The agency’s action could reduce mortgage interest rates by 50 basis points for FHA and VA loans, which would benefit first-time homebuyers, said Jaret Seiberg, an analyst with Cowen Washington Research Group. On the other hand, the issuers Ginnie limited to issuing custom pools will end up making loans with higher rates, the analyst noted. Ginnie’s action is part of a joint effort with the Department of Veterans Affairs to crack down on loan churning and faster prepayments of VA loans pooled in Ginnie securities. Loan churning ...


April 6, 2018 - Inside FHA/VA Lending

Ginnie MBS Production Tumbled To Three-Year Low in Early 2018

Issuance of new single-family Ginnie Mae mortgage-backed securities fell sharply in the first quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. The agency issued $92.58 billion in MBS backed by forward mortgages during the first three months of 2018. That was down 14.8 percent from the previous three-month period and represented the lowest quarterly total since early 2015. The 1Q figure is based on truncated loan amounts reported in Ginnie’s loan-level MBS disclosures. Reports with unrounded single-family loan amounts show a total of $95.75 billion in first-quarter MBS issuance, including FHA reverse mortgages. The loan-level data reveal that production fell 6.9 percent from February to March, when just $28.21 billion of Ginnie single-family securities were issued. That was the lowest monthly volume since February 2015. Both the FHA and VA programs saw significant ... [Charts]


April 6, 2018 - Inside MBS & ABS

MBS Trading Volume on the Rise Early in 2018, But Ginnie Prepay Concerns Linger

As rates continued to rise early this year, the average daily trading volume in agency MBS topped $239.2 billion in February, the best showing in at least 14 months, according to figures compiled by the Securities Industry and Financial Markets Association.


April 6, 2018 - Inside MBS & ABS

Acting Ginnie Mae Chief Michael Bright Worries About Liquidity as Nonbanks Still Dominate Sector

Ginnie Mae has no plans to reduce the number of issuers it oversees or raise capital standards for servicers, but in an interview with Inside MBS & ABS this week, Executive Vice President Michael Bright made it clear he’s worried about liquidity – a lot.


March 23, 2018 - Inside FHA/VA Lending

USDA Securitization Fell in 2017, Freedom Maintains Market Lead

Securitization of USDA loans by Ginnie Mae fell in the fourth quarter of 2017. Approximately $19.9 billion of USDA loans were delivered into Ginnie MBS pools in 2017, notwithstanding a 9.2 percent drop from the previous quarter, agency data show. On the other hand, year-over-year securitization of rural housing loans with a government guarantee rose 5.8 percent from 2016. Top-ranked Freedom Mortgage saw its USDA loan deliveries to Ginnie drop 16.2 percent during the fourth quarter, while its USDA securitization volume rose a whopping 78.9 percent from the previous year. Overall, Freedom accounted for $3.6 billion of USDA loans pooled in Ginnie MBS last year. Second-place PennyMac closed the year with $3.1 billion of securitized USDA loans, while Wells Fargo reported a 13.1 percent drop in the final quarter to end 2017 with $1.4 billion of rural housing loans in Ginnie MBS. Chase Home Finance sprang out ... [ Chart ]


March 23, 2018 - Inside FHA/VA Lending

Ginnie-MPF Partnership Bears Fruit as Issuance Exceeds $1 B

Ginnie Mae has passed the $1 billion mark for mortgage-backed securities issued through the Federal Home Loan Banks’ Mortgage Partnership Finance program. The MPF government MBS product was available initially to eligible participating members of the Federal Home Loan Bank of Chicago. The Chicago FHLB launched the MPF program in 1997 to give approved participating members access to the secondary mortgage market. Specifically, the program provided an outlet other than Fannie Mae and Freddie Mac for member institutions to sell fixed-rate mortgage loans (conventional, government, or jumbo). Most of the institutions participating in the MPF are small banks, thrifts and credit unions with assets of less than $400 million. The MPF government MBS product arose from a 2015 partnership between Ginnie Mae and the Chicago FHLB to issue Ginnie MBS backed by ...


March 23, 2018 - Inside FHA/VA Lending

Senate Banking Bill Imposes New Terms on VA Non-Cash-Out Refis

Legislation that would protect veterans from predatory lending that was passed by the Senate recently could have lasting impacts on the VA home-loan guaranty program, according to legal experts. S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, passed on March 14 by a vote of 67-31. Sixteen Democrats and one Independent joined all 50 Republicans in passing the bill. Primarily, the bill would loosen stringent rules in the 2010 Dodd-Frank Act designed to prevent the bad business practices that led to the 2008 financial crisis. A stand-alone bipartisan bill introduced by Sens. Thom Tillis, R-NC, and Elizabeth Warren, D-MA, in January was added to S. 2155 shortly before the Senate vote. The Tillis-Warren bill, Protecting Veterans from Predatory Lending Act of 2018, addresses the issue of serial refinancing, or loan churning, in which the victims are veterans. Churning refers to the ...


March 15, 2018 - Inside Mortgage Finance

Soaring Role of Nonbanks in Ginnie Mae MBS Market Poses Risks, Brookings Report Says

The significant gains of nonbank mortgage lenders in the government-backed mortgage market suggests that nonbank failures could be quite costly to the government and taxpayers, according to a paper authored by three Federal Reserve Board economists and two university researchers.


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