SAN FRANCISCO - Ginnie Mae is set to roll out a program this December that will allow GNMA II issuers to securitize the excess servicing fees on their portfolios, said officials from the Agency at the Mortgage Bankers Association's 91st Annual Convention & Expo. This does not apply to GNMA Is, however.

Through the new program, a servicer would be able to take a portion of the servicing fee and securitize it, rather than hold the excess on its balance sheet. For instance, a GNMA II security with a 6.25% interest could be pooled into a 5.5% security, leaving 50 basis points of excess for securitization.

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