On September 23rd, Ginnie Mae released a white paper entitled "An Era of Transformation," highlighting how mortgage lending in the United States has changed since the 2007-08 financial crisis. One change of particular concern to Ginnie Mae is the retreat of commercial banks from home lending and servicing. Ginnie Mae writes:
"In light of Ginnie Mae’s dependence on a sufficient supply of capable and willing private market firms to support the mortgage backed securities it guarantees, decreased levels of participatory interest of some of the largest and strongest residential finance firms is not a welcome development."
According to the paper, Ginnie Mae attributes the post-crisis bank retreat to the following three factors:
Read the report here.
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