Ginnie Mae published a Request for Input (RFI) as it considers making changes to the parameters governing loan eligibility for pooling of mortgages into its security. This RFI is a part of the agency’s continuing effort to monitor and support the market performance of the Ginnie Mae mortgage-backed securities (MBS). The publication of the RFI follows policy changes already implemented by Ginnie Mae and the Department of Veterans Affairs (VA) to address abnormal prepayment patterns in some mortgages pooled in Ginnie Mae MBS that negatively affect MBS pricing, to the detriment of home mortgage loan affordability.
“Protecting the value of our securities and, thereby, the borrowers Ginnie Mae serves, is paramount and, as such, modifications to our pooling parameters are under consideration,” said Ginnie Mae Acting President Maren Kasper. “This RFI enables the agency to take views from a wide variety of stakeholders under consideration as we work to eradicate abnormal prepayment patterns that are negatively impacting the performance of the Ginnie Mae MBS program.”
The RFI provides background information and analysis for consideration and specifically requests input concerning the potential removal from, or the restriction of, certain cash-out refinance mortgages within the Ginnie Mae II MBS. All responses to the RFI are to be submitted to Ginnie Mae by May 22, 2019.
The RFI may be viewed here.
