Beginning in the fall of 2010 issuance for Ginnie Mae II multiple-issuer pools can occur on a daily basis, rather than once a month reported HousingWire last week.
The changes were originally announced by Housing and Urban Development (HUD) secretary Shawn Donovan in April and are aimed at minimizing financial risk for warehouse lenders and making the program more efficient for all lenders.
“Lenders will be able to better utilize warehouse lending lines and reduce interest costs associated with carrying loans until they can be securitized and settled,” Ginnie president Theodore Tozer said in a statement. “There will just be more deliveries done by the issuer throughout the month,” he told HousingWire last month.
Under another program change outlined, lenders will be able to securitize a single loan in Ginnie Mae multiple-issuer pools, eliminating the current three-loan minimum requirement. This will allow small lenders to participate in multiple-issuer pools because it will require only one loan to participate in the pooling of a security.
While lenders are excited about he upcoming changes, they will not apply to Ginnie Mae’s reverse mortgage MBS program. RMD confirmed with the agency it’s due to the fact the HMBS program is not part of the Ginnie Mae multiple-issuer pools, but custom pools.
Having access to the program would give reverse mortgage lenders a substantial boost in liquidity but its not on the table at the moment said Ginnie Mae. During the first three months of 2010, over $3 billion HMBS securities have been issued according to data from Ginnie Mae.