On Friday, HUD’s Office of Inspector General (OIG) ratified former Ginnie head Ted Tozer’s fears about Ginnie’s growing counterparty exposure to non-bank servicers.  Of course, Ginnie’s risk is shared by the GSEs, which also have increasing exposures to non-banks and, like Ginnie, little ability to contain this risk without walking away from about half the U.S. mortgage market.

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