Federal Housing Finance Agency (FHFA) and Government National Mortgage Association (Ginnie Mae) officials have detailed updated minimum financial eligibility requirements for seller/servicers and issuers.
The action stems from changes in the nation’s housing finance system, which reflect FHFA and Ginnie Mae’s goals of promoting confidence in approved issuers and seller/servicers while bolstering mortgage-backed securities (MBS) ecosystem stability.
“The robust collaboration of Ginnie Mae President Alanna McCargo and FHFA Director Sandra Thompson is a testament to their leadership and shared commitment to sustainable access to credit for American families,” Department of Housing and Urban Development (HUD) Secretary Marcia Fudge said.
The FHFA and Ginnie Mae have collaborated to align their standards and implementation timelines. Most of the requirements are slated to become effective on Sept. 30, 2023.
“The updated eligibility requirements represent an ongoing commitment to the safety and soundness of Fannie Mae and Freddie Mac by strengthening the capacity of seller/servicers to meet the financial responsibilities associated with doing business with the Enterprises,” Thompson said. “FHFA and Ginnie Mae’s effort to coordinate on financial eligibility requirements provides greater consistency for Enterprise seller/servicers and Ginnie Mae issuers.”
Ginnie Mae President Alanna McCargo said ensuring Ginnie Mae issuers can acquire financing is critical to preserving access to credit for those borrowers who depend on Ginnie Mae and insuring agency partners.
“These enhanced requirements, the product of our historic collaboration with FHFA, will promote the resilience of our issuers and better enable them to operate throughout economic cycles,” McCargo said.
The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) recently issued a joint statement commending FHFA and Ginnie Mae for progress with regard to aligning capital and liquidity requirements for nonbank mortgage companies.