The Government National Mortgage Association is making it easier for MBS issuers to pledge their servicing rights to obtain financing from warehouse lenders.
Ginnie Mae president Ted Tozer revealed the regulatory change Tuesday afternoon at the Mortgage Bankers Association’s annual convention in Chicago.
The move is part of Tozer’s efforts to encourage originators to both issue GNMA MBS and retain the servicing rights, as opposed to selling the loan and/or servicing strip to the industry’s biggest players, who control the lion’s share of both markets.
To this end, the secondary market agency has revised its basic “Acknowledgement Agreement” to make it simpler for Ginnie Mae to honor servicing pledges and permit the transfer of servicing rights.
“The updated agreement offers additional flexibility to warehouse lenders, while still protecting Ginnie Mae’s interests as the guarantor of the securities,” Tozer said.
The new agreement no longer requires creditors to name a stand-by issuer when an acknowledgment agreement is executed. When a portfolio needs to be transferred, the creditor is given the opportunity to identify an approved Ginnie Mae issuer to assume the portfolio.
The new agreement “takes us one step closer to the goal of ensuring the Ginnie Mae program has a large diverse issuer base that makes it possible for borrowers in government programs to obtain the best interest rates,” Tozer said.
Daily Briefing | Wednesday, October 12, 2011
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