OIG Criticizes Ginnie Mae Oversight of Nonbanks

Posted To: MND NewsWire

Ginnie Mae, is a wholly owned U.S. government corporation that guarantees and securitizes pools of mortgages originated through FHA, Veterans Administration, and Rural Housing Administration programs. Since the housing crisis Gennie Mae has experienced a shift in is lender (issuer) base; the share of non-banks originating the loans underlying its mortgages-backed securities (MBS) has increased significantly. Now the Office of Inspector General (OIG) for the Department of Housing and Urban Development (HUD), has published the results of an audit which claims Ginnie Mae, in its oversight role, has not adequately responded to that shift. While Ginnie Mae guarantees and securitizes the above types of loans, it depends on its issuers to take full responsibility for servicing, remitting, and reporting...(read more)

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