MBA Concludes Ginnie Mae Review
March 13, 2002
Appoints New Markets Task Force
Washington, DC (March 13, 2002) ? The Mortgage Bankers Association of America today completed an internal process of reviewing Ginnie Mae?s role in the real estate finance industry by adopting its own task force report and appointing a broader New Markets Task Force, charged with evaluating new outlets for mortgage lending and determining how competition can be increased in the secondary market.
The task force report reaffirmed MBA?s long-standing support for free, fair and expanded competition in the secondary markets. "Increased competition in the secondary markets creates a more rigorous and responsive industry and increases homeownership opportunities for more Americans," said MBA Chairman, Jim Murphy. "This is true whether the increased competition comes from expanding the role of Ginnie Mae, opening up access to the Federal Home Loan Banks, or ensuring the mission fulfillment of the Government-Sponsored Enterprises."
MBA?s Ginnie Mae task force examined Ginnie Mae?s potential role in securitization of conventional loans and reevaluated and reaffirmed fundamental MBA positions on Ginnie Mae. "The good and thorough work of the task force has generated a productive dialogue within our organization," said MBA Chairman-elect John Courson. "In the end, there was a consensus to put in place a process to take a closer look at how we might develop new markets and new products to bring more competition to the secondary market."
In adopting the task force report, MBA?s Board of Directors made it clear that any proposal to increase competition will be evaluated against a set of consistent principles. In particular, any plan to expand Ginnie Mae products must not undermine the current success of FHA and Ginnie Mae.
As part of its conclusions, MBA also determined that it would not support the current versions of legislation that would permit Ginnie Mae to include conventional mortgage loans in their mortgage-backed securities pool. MBA will, however, continue to work closely with all interested parties to explore ways to bring more competition to the secondary market.
Source: Mortgage Bankers Association