Ginnie Mae said a recent change it made to its Ginnie II MBS program will help mortgage bankers with their warehouse lines of credit.
"Lenders will be able to better utilize warehouse lending lines and reduce interest costs associated with carrying loans until they can be securitized and settled," said Ginnie Mae president Theodore Tozer.
Beginning this fall, issuance for Ginnie II multiple issuer pools can occur daily, rather than once a month.
Also, mortgage bankers can submit just one loan for securitization, eliminating the current three-loan minimum. Another wrinkle to the program will allow seller/servicers to submit "orphan loans" which are individual mortgagees that normally may not fit into a certain pool because the note rate differs significantly (at least 50 basis points) from other loans in the pool.
In general, banks have been more willing to extend warehouse credit to nonbanks over the past six months, but only on Fannie Mae, Freddie Mac, and Federal Housng Authority (FHA)/Department of Veterans Affairs (VA) products.
Fannie Mae, Freddie Mac and Ginnie Mae had a combined "purchase" market share of 98% in the first quarter, according to new figures compiled by National Mortgage News (NMN).
The share number represents a slight decline from the near monopoly (99%) they had on the business last year. NMN derived its market share numbers by taking the loan purchases of the GSEs (and the bond issue of Ginnie Mae, which reflects FHA/VA production) and dividing it by industry-wide originations in a given time frame.
It's no secret to seller/servicers that these three entities dominate the secondary market, setting loan standards for 60 million borrowers.
The numbers also indicate that very few lenders actually keep whole loans on their balance sheets except for jumbo mortgages, and, perhaps, conventional ARMs.
Ten years ago Fannie and Freddie had a combined purchase market share of about 50% with GNMA at a meager 5%.