The Federal Housing Finance Agency today announced updated standards that mortgage lenders will have to meet in order to sell or service loans on behalf of Fannie Mae and Freddie Mac. Additionally, Ginnie Mae also updated its requirements for servicers of Ginnie Mae mortgages in coordination with FHFA. Among other things, the standards create several new requirements for non-depository sellers and servicers to help mitigate the risk posed by these firms.
Under the new standards, sellers and servicers will 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. Fannie and Freddie sellers and servicers would be required to maintain a capital ratio of tangible net worth to total assets that is greater than or equal to 6%. Depository institutions would continue to rely on their prudential regulatory standards to meet the GSEs’ capital and liquidity requirements.
The majority of the requirements—including those related to net worth and liquidity—take effect September 2023.