Ginnie Mae issuers that have not issued a single agency mortgage backed security since gaining approval will be on the federal association’s radar, reports Inside Mortgage Finance.
To investigate the causes of “dormant” issuer activity, Ginnie Mae President Ted Tozer told IMF that the agency has begun assigning staff to “get a better handle on what’s going on.”
There is speculation that some lenders obtain their Ginnie approvals to boost their franchise value without having plans to issue securities, IMF writes, which spawned the investigations.
Read more at Inside Mortgage Finance.
Written by Jason Oliva