06/14/2018 | Press release | Distributed by Public on 06/14/2018 06:02
Washington, DC - Ginnie Mae announced today that it was enhancing its Issuer Operational Performance Profile (IOPP) tool with the addition of a single-family prepayment rate metric. The new metric enables Ginnie Mae MBS Issuers to more easily monitor the prepayment rate of loans in the securities they've issued that carry the Ginnie Mae guaranty. The new feature is the latest move by Ginnie Mae to create tools that help its issuers understand how the corporation is monitoring prepayments to ensure the integrity and market predictability of Ginnie Mae MBS.
Issuers should continue to monitor their overall IOPP scores, including this new metric, as a tool for helping to assess their relative performance in the Ginnie Mae program. The IOPP scores are not public. Issuers with questions should contact their Account Executive.
'Ginnie Mae is laser-focused on the performance of our securities and knows that only in partnership with our Issuers can we continue to attract the global capital necessary to finance affordable homeownership,' said EVP and Chief Operations Officer Michael Bright.
All eligible issuers will have access to the new prepayment feature beginning June 25.
Meanwhile, last month, Ginnie Mae announced changes to the eligibility requirements of mortgages that are insured by the Department of Veteran's Affairs (VA), a step intended to prevent so-called churning of VA mortgages, which had been a cause of unpredictable prepayment patterns. Full details of the new requirements can be found in the corporation's All Participants Memorandum 18-04.
About Ginnie Mae
Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of low- to moderate-income homeowners throughout the country. Ginnie Mae MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.