Responding to Ginnie Mae's request for suggested improvements to its MBS and Multiclass Securities Programs, The Bond Market Association last week released a statement regarding suggestions on how the agency could restructure mortgage insurance premium requirements. These fees are the amount paid by a borrower for mortgage insurance, which need to be paid upfront and annually (50 basis points) without regard to a borrower's payment history or accumulated home equity.

The BMA stated that the goals of these suggested changes are to reward and retain performing borrowers, to enhance product innovation to be more competitive versus the conventional market in serving low income borrowers, to improve the pricing and liquidity of Ginnie Mae MBS through increased disclosure and to create bonds with maturities of 10 years or less.

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