Ginnie Mae recently revealed a significant update regarding risk-based capital relief for mortgage servicers who actively hedge their Mortgage Servicing Rights (MSR) values. The government agency made the announcement on Thursday, signaling a notable shift in policy that will impact industry stakeholders across the board.
Key points from the announcement include:
– Ginnie Mae’s decision to offer risk-based capital relief to issuers who successfully hedge their MSR values
– The emphasis on effective hedging practices as a means of mitigating risk in the mortgage servicing industry
– The potential implications of this new policy on the broader mortgage market and the strategies employed by industry players to manage their MSR exposure.
Overall, this development signifies a significant regulatory shift in Ginnie Mae’s approach to risk management within the mortgage servicing sector, with potential implications for how issuers and investors navigate the evolving landscape of the mortgage industry.
You can read this full article at: https://www.housingwire.com/articles/ginnie-mae-allows-for-risk-based-capital-relief-to-issuers-that-hedge-msrs/(subscription required)
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