Ginnie Mae is shortening the re-pooling seasoning requirement for re-performing loans from six months to three months and allowing issuers the option to pool re-performing loans into TBA-eligible Ginnie Mae II Multi-Issuer Pools. Ginnie Mae will effectuate these policy changes no later than the end of Q1 2023 with a formal policy notice forthcoming.
This change reverses several of the temporary pooling restrictions placed on re-performing loans introduced during the pandemic. See APM 20-07, dated June 29, 2020.
The changes were announced at the Mortgage Bankers Association (MBA) Annual Conference where Ginnie Mae President Alanna McCargo delivered remarks focused on how Ginnie Mae is working with the mortgage industry to facilitate access to affordable mortgage credit for homeowners and renters across credit cycles.
Her remarks touched on the importance of the Independent Mortgage Bank (IMB) sector, as well as Ginnie Mae’s support of the secondary mortgage market in a challenging interest rate environment. Ginnie Mae understands it is in the best interest of economically challenged borrowers, issuers, market-makers and the investor community to ensure liquidity is reliably available.
President McCargo re-emphasized the one-year extension of the implementation period for its Risk Based Capital (RBC) requirement published in its updated minimum financial requirements for IMBs in APM 22-11. The RBC requirement itself has not changed. Rather, the extended implementation period provides additional time for the mortgage industry to adapt to the new framework.
“We are working through this cycle together,” says McCargo. “I am committed to engaging with stakeholders to ensure a strong IMB industry that is able to continue supporting the many households facing significant affordable housing challenges.”