6.25.21
On June 25, Ginnie Mae announced the creation of a new pool type to support the securitization of modified loans with terms of up to 40 years. Ginnie expects the new pools to be ready for use by October, but their extended term modifications must still be authorized by the Federal Housing Administration. The new pool type will allow Ginnie issuers to offer loan modifications that carry a lower monthly payment than a 30-year mortgage, while retaining the ability to securitize the loans for sale into the secondary market. This latest move aligns with the Biden Administration’s push to create home loan opportunities for struggling borrowers.