Home / Daily Dose / Ginnie Mae Updates Its Outline for the Future
Print This Post Print This Post

Ginnie Mae Updates Its Outline for the Future

This week, Ginnie Mae published an update to its Ginnie Mae 2020 white paper that was released in 2018. Apart from a detailed progress report on what it planned to accomplish by next year, the update also gave some proposals on housing finance reform.

The report noted that under the Presidential Memorandum signed in March 2019, Ginnie Mae and other federal
stakeholders "have been directed to propose reforms for the U.S. housing finance system."

Ginnie Mae said that this directive meant that the agency would modernize its operations and technology and also propose administrative and legislative changes, "that enhance our program requirements and our standards, ensuring safety and soundness."

Additionally, the report indicated that the reform plan could also include "further policy consideration not presented in this update."

Looking at the progress that the agency had made towards the goals enumerated in its Ginnie Mae 2020 white paper, the update indicated that Ginnie Mae's mortgage-backed securities (MBS) platform remained robust and secure. While modernization would remain a top priority, Ginnie Mae said that its state-of-the-art platform already had the ability to easily scale without market disruption or operational incidents" as demonstrated in the period since the 2008 financial crisis, when the total MBS outstanding grew from less than $500 billion to over $2.1 trillion today."

"At $2.1 trillion in size and growing, the Ginnie Mae MBS portfolio is an integral component of the U.S. mortgage finance system," said Maren Kasper, Acting President, Ginnie Mae. "Ginnie Mae continues to demonstrate its capacity to effectively operate and maintain a state-of-the-art technology platform and counterparty risk framework, keeping pace with innovation and evolution in the mortgage finance system."

The agency said that the update included its efforts to continue to improve operations, enhance the user experience, and move towards adopting digital mortgages against the modernizations benchmarks presented in its white paper last year.

Additionally, Ginnie Mae said that it continued to evolve its counterparty risk management program and maintaining a strong focus on program innovation.

"This allows us to fulfill our mission by facilitating liquidity in the American housing market, ensuring the health of the Ginnie Mae security and protecting taxpayer interests," Kasper said. "The report details the progress we have made in the last year and outlines our blueprint for the future."

Click here to read the full report.

About Author: Radhika Ojha

Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas.
x

Check Also

Housing’s Impact on Economic Growth

Some key indicators are pointing to a recession in the near future, but according to recent data, housing remains strong.

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.