Ginnie Mae is being bombarded by requests from small mortgage banks to become issuers of its MBS. Fewer large banks are willing to purchase their loans, so the mortgage banks are throwing themselves into the arms of Ginnie.

They have become spooked by the exit of Bank of America, Ally Financial and MetLife from correspondent lending. Wells Fargo may have intensified their worries by refusing in July to fund mortgages through its wholesale channel from independent mortgage brokers.

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