Due to increasing concern that Ginnie Mae issuers cannot transfer loans within a pool to transact a full loan mortgage servicing right (MSR) sale, the Community Lenders of America (CHLA) is asking Ginnie Mae to provide capabilities to allow for loan-level pooling.
In a letter to the government agency, CHLA requests that Ginnie Mae act to provide the following capabilities:
- Do not require a full pool buyout to conduct a servicing transfer of Ginnie Mae loans.
- Provide the capability to transfer the servicing of the loan WHILE it remains in the existing Ginnie Mae pool.
- Invest in the operations, resources and policy mandates to provide this capability.
- Permit loans to be re-pooled if the loan is delinquent, regardless of the time of re-pooling of re-modified loans.
“The inability for Ginnie Mae issuers to sell and transfer a single loan MSR puts financial constraints on community lenders, which in turn, impacts many of the first-time and underserved borrowers they are servicing,” says Scott Olson, executive director of CHLA. “CHLA urges Ginnie Mae to offer solutions that mitigate the extra burden this lack of loan level servicing puts on small and medium-sized community lenders, many of which who do not have the same breadth of advantages larger lenders can afford.”