Ginnie Mae is gearing up several changes to its securitization program that are designed to support liquidity at approved mortgage lenders and securities issuers. US Department of Housing and Urban Development (HUD) secretary Shaun Donovan recently announced the changes, which Ginnie hopes to implement later this year. For years, there was a three-loan minimum for lenders to make a delivery into the multi-lender program for securitization. Ginnie will cut the minimum from three down to one loan. “We’re looking to hopefully have all our systems operational by the June issue,” Ginnie president Ted Tozer told HousingWire, adding that the change could possibly be pushed to July. The second change in the works involves Ginnie’s multi-issuer program and is scheduled to possibly come online in November. “Lenders will be able to have their pools issued daily,” Tozer says. “The reason we pushed for it was to enable firms that are having problems with warehouse lines to, on the first of the month, get their pools issued so they don’t have to wait until the 15th or 16th of the month. So they will basically be able to free up their warehouse lines a couple weeks earlier.” Tozer added that he believes that any changes to risk retention requirements would not largely impact Ginnie issuance under the new standards. He noted the changes themselves should not affect the volume of Ginnie issuance either, but will act as a liquidity support for lenders and issuers. “There will just be more deliveries done by the issuer throughout the month.” Write to Diana Golobay.
Most Popular Articles
With rapid change in the industry, real estate agents can choose to fight for the status quo or they can evolve and adapt, HousingWire Columnist Dustin Brohm writes.
Instant mortgages are the endgame of directly-connected consumer data, but who controls consumer data in the end: lenders or consumers? And how do we even define and market instant mortgages today?