Ginnie Delays Lower Mortgage Quota for Securitization
Ginnie Mae is delaying changes to its multiple issuer pool requirements. Ginnie president Ted Tozer told HousingWire in April the change was expected to be in place in time for the June mortgage-backed securitization (MBS) issue. The changes, which reduce the minimum dollar amount and the count of loans eligible for submission for securitization, will now go into effect beginning in the July and August MBS issues. Ginnie will reduce the minimum number of loans for delivery into the multi-lender program down to one from three. It will also reduce the minimum dollar amount to $25,000 from $250,000 and require the coupon rates in half or whole percentages. "At the request of the industry, Ginnie Mae is delaying the implementation in order to be able to phase in the requirement that the coupon rate be in whole or half percentages, to allow its business partners additional time to clear out their securitization pipelines," the company said in a statement. The new minimum-dollar mount and one-loan minimum requirements apply to multiple-issuer loan packages received on or after July 6, 2010. The requirement related to half and whole coupon rates will take effect Aug. 1, 2010. All loan packages submitted for August issuance and beyond must meet the half or whole rate requirement or face rejection by Ginnie. The changes in minimum requirements are designed to support liquidity at approved mortgage lenders and securities issuers. Additionally, beginning in the fall of 2010, issuance for Ginnie II multiple-issuer pools can occur on a daily basis, rather than once a month. This will clear warehouse credit lines more often and will support liquidity at these firms. Write to Diana Golobay.