MBA Statement on Ginnie Mae’s One-Year Delay of its Risk-Based Capital Requirement

October 21, 2022 Press Release


Adam DeSanctis

(202) 557-2727

Share to

MBA President and CEO Bob Broeksmit, CMB, released the following statement on Ginnie Mae’s announcement today to extend the mandatory implementation date of its risk-based capital requirement (RBC) to December 31, 2024:

“MBA appreciates Ginnie Mae’s decision to delay the implementation date of its RBC requirement for one year. Given current economic and mortgage market conditions, the extra time allows for continued dialogue and a much-needed comprehensive analysis to fully assess its impact. 

“While MBA and its members have worked constructively with Ginnie Mae to develop stronger capital and liquidity standards to ensure the safety and soundness of Ginnie Mae issuers, we have stressed, since August 2021 when the RBC concept was first introduced, that the punitive treatment of mortgage servicing rights (MSRs) could result in reduced liquidity of MSRs and could limit lenders’ ability to serve borrowers in the Ginnie Mae servicing space.

“MBA has led efforts to address concerns about the RBC standard, engaging with Ginnie Mae in a thoughtful, data-informed discussion about the possible adverse impact on the Ginnie MSR market, and the implications for first-time, low- and moderate-income, and veteran homebuyers. We appreciate the dialogue with Ginnie Mae and will continue our work to ensure that the mortgage system remains safe without causing undue harm or higher costs to borrowers.”