Jeannie Mae is set to introduce a new 40-year mortgage term for its issuers right after the administrative turmoil at the top of the housing industry.
According to Ginny Mae, only loans with a maturity of more than 361 months and less than or equal to 480 months will be accepted, but there will be no restrictions on the amount of the loan. The mortgage bond giant said it expects the new pool to be available in October.
The pool must also be authorized Federal Housing Agency and other agencies whose programs are the basis for obtaining loans through Ginny Mae, said Michael Drane, acting executive vice president of Ginny Mae, in a press release.
“We’ve begun work to make this security product affordable because the 40-year extension could be a powerful tool in reducing monthly payment obligations to keep the home safe,” Drane said. “It is important that Ginnie Mae issuers have secondary market liquidity for options that our agency partners deem appropriate to support homeowners in distress.”
John Getchis, Ginny Mae’s senior vice president of capital markets, noted that the 40-year pool gives issuers greater control and the ability to maximize market prices.
“We think the market will find value in the securities backed by these loans, so we wanted to provide a pooling structure that would enable issuers to obtain that value – thereby increasing their ability to provide homeowners with the most reliable options while remaining respectful of investors. Capital, he said.
News is coming on your heels Julia Gordon Nominated President Joseph Biden as new commissioner FHA – an agency with loans secured by Jeannie Mae – and Department of Housing and Urban Development, as well as Biden’s attempts to remove the former Federal Agency for Housing Finance Director Mark Calabria… As well as David Wegioacting director Consumer Protection Bureau, was appointed HUD’s new assistant secretary.
HUD Senior Advisor Alanna McCargo said finding solutions to help keep people in their homes has been a top priority for HUD leadership over the past 12 months.
“As interest rates rise, this 40-year feature will provide more room to cut payments to help homeowners,” McCargo said. “Jeannie Mae has been an integral part of the interagency response to foreclosure for homeowners facing financial hardship as a result of [the COVID-19 pandemic]… “
Jeannie Mae announced the first guarantee of mortgage-backed securities backed by digital pools or loan pools, which are made up entirely of electronic notes, in February.