The Federal Housing Finance Agency today re-proposed updated standards that mortgage lenders would have to meet in order to sell loans to or service loans on behalf of Fannie Mae and Freddie Mac. The proposed update includes requirements for the servicing of Ginnie Mae mortgages. FHFA also noted that in this latest proposal, it has also incorporated feedback from a January 2020 proposal, as well as lessons learned from the COVID-19 pandemic.
Under the proposed requirements, all sellers and servicers would be required to maintain a base net worth of $2.5 million plus 35 basis points of the unpaid principal balance for Ginnie Mae servicing and 25 basis points of the unpaid principal balance for all other 1-to-4-family loans serviced. Depository institutions would continue to rely on their prudential regulatory standards to meet the GSEs’ capital and liquidity requirements.
Among other things, nonbanks’ minimum capital ratio would remain unchanged, while their minimum liquidity would rise from 3.5 basis points of their total agency servicing to four basis points for GSE servicing and 10 basis points for Ginnie Mae servicing. Comments on the proposed changes will be due in 60 days.