WASHINGTON, D.C. – Ginnie Mae President Alanna McCargo today announced policy changes to strengthen the mortgage sector by increasing issuer liquidity.
Ginnie Mae is shortening the re-pooling seasoning requirement for re-performing loans from six months to three months and allowing issuers the option to pool re-performing loans into TBA eligible Ginnie Mae II Multi-Issuer Pools. Ginnie Mae will effectuate these policy changes no later than the end of Q1 2023 with a formal policy notice forthcoming.
This change reverses several of the temporary pooling restrictions placed on re-performing loans introduced during the pandemic. See
APM 20-07, dated June 29, 2020.
The changes were announced at the Mortgage Bankers Association (MBA) Annual Conference where President McCargo delivered remarks focused on how Ginnie Mae is working with the mortgage industry to facilitate access to affordable mortgage credit for homeowners and renters across credit cycles.
Her remarks touched on the importance of the Independent Mortgage Bank (IMB) sector, as well as Ginnie Mae’s support of the secondary mortgage market in a challenging interest rate environment. Ginnie Mae understands it is in the best interest of economically challenged borrowers, issuers, market-makers, and the investor community to ensure liquidity is reliably available.
President McCargo re-emphasized the one-year extension of the implementation period for its Risk Based Capital (RBC) requirement published in its updated minimum financial requirements for IMBs in
APM 22-11. The RBC requirement itself has not changed. Rather, the extended implementation period provides additional time for the mortgage industry to adapt to the new framework.
“We are working through this cycle together,” said President McCargo. “I am committed to engaging with stakeholders to ensure a strong IMB industry that is able to continue supporting the many households facing significant affordable housing challenges.”
Throughout the speech, President McCargo emphasized the importance of maintaining strong public and private sector partnerships.
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About Ginnie Mae
Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the Department of Housing and Urban Development’s Office of Public and Indian Housing and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States government.