HUD Acts to Cut MSR Balance-Sheet Volatility, Improve Re-covery on Troubled FHA Assets
June 8, 2006
The Department of Housing and Urban Development is giving Ginnie Mae issuers a program through which they can reduce their exposure to mortgage servicing rights volatility. In a separate rulemaking, the agency also proposed changes to maximize the FHA’s recovery on assets sold by HUD. A HUD final rule published in the June 5 Federal Register will allow Ginnie Mae to guarantee new securities backed by excess servicing fee income from mortgage pools underlying previously…