General World News

Ginnie Mae’s new liquidity standards are sorely needed

Ginnie Mae’s recent proposal to impose liquidity and risk-based capital requirements on their single-family issuers is the right approach for ensuring the long-term financial stability of this segment of the housing finance system. 

Unlike lenders or servicers for Fannie Mae and Freddie Mac, Ginnie Mae issuers are responsible for passing along payments to investors after borrower equity, federal agency and mortgage insurance resources are exhausted. If those issuers fail, Ginnie Mae is ultimately responsible for making those investor payments. 

Immense structural changes to the Ginnie Mae issuer landscape have occurred since 2008, posing significant potential risk to details ⇒

BusinessMediaguide.Com portal received this content from this noted web source: HousingWire.Com