After suspending the approval of new mortgage-backed securities issuers for federally insured reverse mortgages, the Government National Mortgage Corp. beefed up its net worth requirements and resumed approvals.
Last year, Ginnie Mae halted the approval of new issuers for government-insured securitizations backed by home-equity conversion mortgages.
HMBS issuers will now need a $5 million minimum net worth, according to a bulletin Friday.
In addition, net worth must include another 1 percent of the amount of the outstanding remaining principal balance and any commitment authority available to issue securities.
All companies that apply to become an approved HMBS issuer are subject to the requirement.
But existing issuers have until Oct. 1 to comply.
Ginnie is also implementing a new liquid asset requirement of 20 percent of net worth. This rule impacts prospective and existing issuers as of Oct. 1.
New capital requirements that match those of “well-capitalized” institutions become effective on Oct. 1. Banks and thrifts need 5 percent of tier-1 capital to total assets, 6 percent of tier-1 capital to risk-based assets, and 10 percent of total capital to risk-based assets. The requirement is 6 percent of total equity divided by total assets for non-banks, credit unions and subsidiaries.
The Washington, D.C.-based company also said it increased the servicing fee to 36 basis points including Ginnie’s 6-basis-point guaranty fee.
In December, multifamily MBS issuers were advised of additional net worth requirements.
