Ginnie Mae Expects New Pooling Requirements for Streamline Refis Will Ease Investor Prepay Concerns
November 11, 2016
Ginnie Mae’s decision to change the pooling requirements for streamline refinance loans should boost investor confidence and slow new production of GNMA IIs, Deutsche Bank analysts said. The change could be seen as mildly more restrictive than current pooling standards, particularly having more impact on VA loans, which unlike FHA, have no seasoning requirement to qualify for streamline refinancing, said Jeana Curro, bank research analyst. Under new guidance issued last month, in order to be pooled into standard Ginnie I or Ginnie II multi-issuer pools, streamline refi loans must show...