Ginnie Mae Calls on Industry to Address Liquidity Challenges as Fourth Annual Summit Opens: Credit Access, the Regulatory Environment and Servicing Are Industry’s Big Hurdles

WASHINGTON, D.C. – (RealEstateRama) — Nearly 900 mortgage originators, housing finance experts, and government officials will join Ginnie Mae over the next two days to explore the most critical challenges still facing the housing finance industry. The two-day Summit in Washington, DC will focus on the shift to independent mortgage bankers, new business models for managing mortgage servicing rights, and the uncertain regulatory environment.

Ginnie Mae

“Independent mortgage bankers now comprise approximately 80 percent of Ginnie Mae’s monthly issuance volume,” said Ginnie Mae President Ted Tozer. “They are an important piece of the continued success of the housing finance industry. However, if we want borrowers to continue to have access to credit, we need to take a serious look at the liquidity challenges these institutions are facing.”

The fourth annual Summit takes place as the housing finance industry explores ways to continue providing credit to borrowers despite growing capacity concerns among independent mortgage bankers and decreasing values in mortgage servicing rights. “We cannot underestimate the central role that mortgage servicing rights value play in this market,” Tozer stated. “MSR values are declining at a time when we need to borrow against them or sell them to increase liquidity.”

Currently, Ginnie Mae’s outstanding unpaid principal balance exceeds $1.7 trillion dollars, an increase of more than 50 percent in approximately five years. Further, the corporation saw its highest monthly issuance guarantees in history in August with $48.4 billion dollars. Most of this increase is the result of independent mortgage bankers entering the Ginnie Mae program, helping to account for $3.1 trillion in issuance since 2009.

“These complex challenges, plus a regulatory environment that makes it challenging for depository institutions to return to the mortgage market, are more evidence that Ginnie Mae must continue to effectively and efficiently monitor and evaluate risks presented by this environment,” Tozer continued. The 2016 Ginnie Mae Summit provides an opportunity for networking and collaboration between leading lenders, document custodians, D.C.-based policy makers, members of Congress and staff, federal agencies, real estate trade groups and industry analysts. Educational sessions will also provide in-depth examination of Ginnie Mae’s business and programs from a variety of perspectives.

About Ginnie Mae
Ginnie Mae is a wholly-owned government corporation within the U.S. Department of Housing and Urban Development. Ginnie Mae pioneered the MBS, guaranteeing the very first security in 1970 and raises capital from investors in the global credit markets to ensure liquidity for affordable rental and homeownership opportunities across the country. Through its MBS, Ginnie Mae finances housing mortgage insurance programs run by the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), the Office of Public and Indian Housing (PIH), and the Department of Agriculture’s Rural Housing Service. Ginnie Mae securities carry the full faith and credit of the United States Government.

Contact: Gina Screen

(202) 475-7816

SHARE
Ginnie Mae

At Ginnie Mae, we help make affordable housing a reality for millions of low- and moderate-income households across America by channeling global capital into the nation's housing markets. Specifically, the Ginnie Mae guaranty allows mortgage lenders to obtain a better price for their mortgage loans in the secondary mortgage market. The lenders can then use the proceeds to fund new mortgage loans available. Without that liquidity, lenders would be forced to keep all loans in their own portfolio, meaning they would not have adequate capital to make new loans.

Unlike the GSEs, Ginnie Mae is profitable. We do not buy or sell loans or issue mortgage-backed securities (MBS). Therefore, our balance sheet doesn't use derivatives to hedge or carry long term debt.

Contact:

Phone: (202) 708-0926

Previous articleObama Administration’s Final NEPA Guidance: Litigation Blueprint For Radical Special Interest Groups
Next articleFormer Roxse Homes Worker Sentenced for Taking Bribes