Ginnie Mae Says Most Issuers are Compliant with Risk-Based Capital Rule

Source: National Mortgage News

Ginnie Mae on Tuesday issued a statement indicating most nonbank mortgage companies it works with are ready for its upcoming risk-based capital rule implementation, while also recognizing that not everyone is.

"While the overwhelming majority of Ginnie Mae issuers are compliant with these requirements today, we will continue engaging with our issuers throughout the implementation period," President Alanna McCargo said in a statement that accompanied the release of answers to frequently asked questions about the new requirements. In the FAQ, the government bond insurer addressed some aspects of the rule that have given companies like Ocwen and some trade groups pause.

Notably, the FAQ addresses the 250% risk weighting for mortgage servicing rights that some have questioned. It also acknowledged Ginnie's shift to capital standards more typically associated with banks in addition to the liquidity measures that it's historically put more emphasis on for non-depositories.