Ginnie Mae’s recent announcement regarding their Single-Family Applicant and Issuer Financial Eligibility Requirements represents a major step forward in reducing a potential systemic risk to the housing financial system. 

Since the 2008 financial crisis, a significant structural change has taken place which over time threatens the long-term stability of housing finance. The growth in the number of nonbank financial institutions originating and servicing mortgages and their industry concentration is an unintended consequence of the pull-back in the mortgage business by depository institutions and for some time has represented a gaping hole in managing systemic risk for the industry. 

Nonbanks, for details ⇒

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