The States Take a Turn at Servicer Standards
As promised, we here follow up our assessment of Ginnie’s proposed prudential standards for nonbank mortgage companies with an analysis of model rules aimed at the same goal from the Conference of State Bank Supervisors (CSBS).  In general, CSBS tracks FHFA, although the model rules apply their standards to all covered exposures, not just to those to the GSEs as is the case for FHFA.  Ginnie’s proposal is tougher, but CSBS has several provisions that could lead to at least a few concessions, reducing the otherwise-certain migration of nonbanks from Ginnie to the GSEs as well as into other hands and businesses.