Ginnie Mae wants FCUs’ mortgages
Ginnie Mae President Ted Tozer (Dietsch photo)
Sept. 10, 2013 – Ginnie Mae President Ted Tozer told NAFCU Congressional Caucus attendees Monday that he wants to see more federal credit unions look to the entity for their secondary mortgage market needs.
“We have more than $1.4 trillion in mortgage-backed securities outstanding now,” he said, “and we want to see federal credit unions interested in mortgage lending participate with Ginnie Mae.”
Tozer said the Federal Home Loan Bank of Chicago is planning to issue securities guaranteed by Ginnie Mae and backed by mortgages originated by member financial institutions. This product, “MPF Government Mortgage-Backed Securities,” is aimed especially at smaller institutions that lack direct access to the secondary mortgage market.
In an announcement released to press, Ginnie Mae said lenders participating in the entity’s new product will be able to choose whether to retain or release servicing on the government-guaranteed loans they originate. The product will be available initially to eligible participating members of the Chicago FHLBank in Illinois and Wisconsin; it will be rolled out more broadly next year.
Tozer, noting his company has been in ongoing discussion with housing regulators on housing finance reform, said an effective housing finance model for the future must include, among other things, small-lender access to the secondary market.
He also said a government guarantee is essential to preserving an affordable, widely available 30-year, fixed-rate mortgage.
NAFCU Congressional Caucus
Announcement, Chicago FHLBank to issue Ginnie Mae Securities