Ginnie Gets Her Gun
Ginnie’s proposed new capital and, to a lesser extent, its liquidity standards could well redefine the mortgage playing field.  As this analysis demonstrates, the proposal – at least what one can tell of it from the agency’s scant outline – makes this playing field considerably more level, increasing both the competitive power of banks in Ginnie-related origination and the incentives for nonbanks to rethink their independence.  The new approach to MSRs – while gentler than that for banks – is still such a shock to the nonbank system that significant revaluation may result along with a shift or even drop in FHA and VA origination.  How much of a hit this is to credit availability depends on what’s next for Fannie and Freddie.