The Government National Mortgage Association (Ginnie Mae) is extending the mandatory implementation date of the RBC requirement [1] to December 31, 2024. The RBC requirement is a part of a larger set of financial eligibility guidelines released simultaneously with Federal Housing Finance Agency (FHFA) requirements on August 17, 2022. The RBC requirement is an important component of measuring risk, designed to strengthen and bolster the Issuers that support the government mortgage market.
Ginnie Mae has been actively engaged with the Issuer community and industry and continues to monitor mortgage markets and engage with public and private partners. As a result of stakeholder feedback and evolving market dynamics, Ginnie Mae has officially extended the implementation date of its new RBC requirement by 1 year. Qualifying Independent Mortgage Bank (IMB) Issuers must now implement the RBC requirement no later than December 31, 2024. All other aspects of the minimum financial requirements will remain the same.
“The state of the U.S. housing market is evolving rapidly, and housing affordability has eroded nationwide, with first-time homebuyers and lower-income households that Ginnie Mae exists to serve feeling the effects most acutely,” said Ginnie Mae President Alanna McCargo. “Our Issuers and the mortgage servicing industry are integral to the government mortgage system, and they are also adapting and adjusting to market conditions. As always, we are focused on working with our counterparties to manage risks and ensure continuity in serving the most underserved households through all economic cycles.”
"MBA appreciates Ginnie Mae’s decision to delay the implementation date of its RBC requirement for one year," said MBA President and CEO Bob Broeksmit. "Given current economic and mortgage market conditions, the extra time allows for continued dialogue and a much-needed comprehensive analysis to fully assess its impact. MBA has led efforts to address concerns about the RBC standard, engaging with Ginnie Mae in a thoughtful, data-informed discussion about the possible adverse impact on the Ginnie MSR market, and the implications for first-time, low- and moderate-income, and veteran homebuyers.”
Broeksmit continued, "While MBA and its members have worked constructively with Ginnie Mae to develop stronger capital and liquidity standards to ensure the safety and soundness of Ginnie Mae issuers, we have stressed, since August 2021 when the RBC concept was first introduced, that the punitive treatment of mortgage servicing rights (MSRs) could result in reduced liquidity of MSRs and could limit lenders’ ability to serve borrowers in the Ginnie Mae servicing space."
Ginnie Mae’s Issuer Eligibility Requirements were first published on August 17, 2022 in APM 22-09 through a joint announcement with the Federal Housing Finance Agency of amended minimum financial requirements for IMB Issuers in government securitization guaranty programs.
To read the full release, including more detail on eligibility guidelines and RBC requirements, click here [1].