Second Annual Ginnie Mae Summit Outlines Position of Mortgage Giant
This Monday, Ginnie Mae kicked off their second annual Ginnie Mae Summit in Washington wherein the mortgage giant shall be describing its position vis a vis the current issues within the mortgage world. With the housing industry in a state of change, the company shall be exploring how mortgage loans and the position of lenders shall be transformed as we emerge fully from the financial crisis.
In a keynote speech from Julian Castro, the new Secretary of Housing and Urban Development, the housing industry was called upon to create a stronger market to serve the American people. “We need to work together to see a robust, healthy housing market, where those who are ready can buy a home,” said Castro. “Our nation is making progress across the board, and HUD is focused on ensuring these opportunities reach every American.”
To this end, Ginnie Mae has announced the following:
The company’s net worth and liquidity requirements are undergoing final changes, to be announced at the Mortgage Bankers Association Annual Convention next month.
The company’s acknowledgement agreement is being changed to achieve a balance in the needs of mortgage lenders and Ginnie Mae’s risk management. The company hopes that this will expand liquidity.
The company has decided upon a Dormant Issuer Policy, which would require issuers to be more active. The purpose of this policy is to allow Ginnie Mae to make more efficient use of the resources that go into monitoring the activities of issuers.
In conjunction with the Federal Home Loan Bank of Chicago, Ginnie Mae is initiating a program which would give small financial institutions greater access to the secondary market. Ginnie Mae will thereby be guaranteeing securities issued by FHLBC, beginning in November of this year.