Industry Worries that More Ginnie Mae Curbs on Buyouts Will Hurt Servicers, Impair Loss Mitigation
November 7, 2008
The mortgage banking sector is worried that further restrictions on loan buyouts and repooling from Ginnie Mae MBS will hit mortgage servicers’ bottom lines and discourage them from loss mitigation efforts. “We are concerned that Ginnie Mae will further restrict buyout and repooling policies. It is doubtful that such changes will materially reduce prepayment speeds, but they could...