Ginnie Mae plans to allow lenders to securitize single loans starting in July, a policy change that would help small lenders be more competitive when doing business with the agency and with the Federal Housing Administration. The FHA does not make loans but insures certain lenders against losses should borrowers default. The agency has played a key role in propping up the housing sector since the mortgage market meltdown. Mortgage lenders working with the FHA often bundle the loans they make into securities and sell them to investors. Ginnie Mae guarantees those securities so that investors continue to get their principal and interest if loans go bad or lenders are unable to make payments to investors.
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Some housing pundits report the demand for housing is strong, while these same pundits, on another day say that we are in a housing affordability crisis. Can the two narratives be accurate at the same time?
Fortune Magazine and Great Place to Work this week announced the winners of its 2020 Best Companies to Work For list, ranking America’s best workplace environments for large companies. And multiple industry titans in the housing space made the list.