Ginnie Mae plans to introduce an excess servicing security this October, applying it only to excess servicing on GNMA II originated loans. This new program is meant to alleviate the seller's burden in retaining the servicing, as the asset has historically presented challenges in terms of placing a value on it.

By creating a structure to purchase and repackage excess servicing from multiple sellers, Ginnie hopes to create a security with a smoother cashflow and less duration volatility.

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