The Community Home Lenders of America (CHLA), a trade group that represents independent nonbank mortgage lenders, says no mechanism exists for the nonbank servicers that do a majority of residential loan servicing for Ginnie Mae to receive emergency funding from the federal government during times of crisis.
Meanwhile, the nonbank share of Ginnie Mae issuance has risen from around 12% in 2010 to more than 96%, according to data from Ginnie Mae, a government-run corporation guaranteeing the servicers and issuers of government-insured mortgage-backed securities.
In a white paper published Tuesday, the CHLA proposed greenlighting — during times of crisis — an emergency mechanism belonging to the Federal Reserve known as a term asset-backed sec...