General World News

Ginnie Mae warns issuer partners about faster prepayments

Ginnie Mae this week issued a public notice to its issuer partners warning of an observation of higher prepayments in some of its mortgage-backed securities (MBS) programs, reminding issuers that a violation of its requirements could result in punitive action.

In a prior All Participants Memorandum (APM) issued in December 2017, Ginnie Mae described how it monitors prepayments in its MBS programs.

“Ginnie Mae is able to identify issuers with unusually fast prepayment rates through operational performance metrics,” the APM said. “Issuers with such prepayment rates should anticipate increased engagement details ⇒

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