Last week, Ginnie Mae released a strategic plan laying out ways to handle its inevitable dependence on non-banks and to anticipate the end of the GSE conservatorships.  Ginnie’s plans include innovative instruments designed for example to create deep markets for mortgage-servicing assets that would enhance non-bank resilience and reduce mortgage-servicing costs for banks subject to stringent MSA risk-based capital charges.  Ginnie is also looking at credit-risk transfers that would have far-reaching counterparty and mortgage-market impact.  Most such CRTs would also need new law, but MIs have interesting opportunities under one provision in current law expressly authorizing Ginnie risk-shares.

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