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M REPORT | 59 SECONDARY MARKET THE LATEST O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T Ginnie Mae Extends Execution Date for Risk- Based Capital Requirement Ginnie Mae President Alanna McCargo said, "As always, we are focused on working with our counterparties to manage risks and ensure continuity in serving the most underserved households through all economic cycles." G innie Mae is extending the mandatory implemen- tation date of the RBC requirement to December 31, 2024. The RBC requirement is part of a larger set of financial eligi- bility guidelines released simultane- ously with Federal Housing Finance Agency (FHFA) requirements on August 17, 2022. The RBC require- ment is an important component of measuring risk, designed to strengthen and bolster the Issuers that support the government mort- gage market. Ginnie Mae has been actively engaged with the Issuer commu- nity and industry and continues to monitor mortgage markets and engage with public and private partners. As a result of stakeholder feedback and evolv- ing market dynamics, Ginnie Mae has officially extended the implementation date of its new RBC requirement by 1 year. Qualifying Independent Mortgage Bank (IMB) Issuers must now implement the RBC requirement no later than December 31, 2024. All other aspects of the minimum financial requirements will remain the same. "The state of the U.S. hous- ing market is evolving rapidly, and housing affordability has eroded nationwide, with first-time homebuyers and lower-income households that Ginnie Mae exists to serve feeling the effects most acutely," Ginnie Mae President Alanna McCargo said. "Our Issuers and the mortgage servic- ing industry are integral to the government mortgage system, and they are also adapting and adjusting to market conditions. As always, we are focused on working with our counterpar- ties to manage risks and ensure continuity in serving the most underserved households through all economic cycles." "MBA appreciates Ginnie Mae's decision to delay the implementa- tion date of its RBC requirement for one year," MBA President and CEO Bob Broeksmit said. "Given current economic and mortgage market conditions, the extra time allows for continued dialogue and a much-needed comprehensive analysis to fully assess its impact. MBA has led efforts to address concerns about the RBC standard, engaging with Ginnie Mae in a thoughtful, data-informed discus- sion about the possible adverse impact on the Ginnie MSR mar- ket, and the implications for first- time, low- and moderate-income, and veteran homebuyers." Broeksmit continued, "While MBA and its members have worked constructively with Ginnie Mae to develop stronger capital and liquidity standards to ensure the safety and soundness of Ginnie Mae issuers, we have stressed, since August 2021 when the RBC concept was first intro- duced, that the punitive treat- ment of mortgage servicing rights (MSRs) could result in reduced liquidity of MSRs and could limit lenders' ability to serve borrow- ers in the Ginnie Mae servicing space." Ginnie Mae's Issuer Eligibility Requirements were first published on August 17, 2022, in APM 22-09 through a joint announcement with the Federal Housing Finance Agency of amended minimum financial requirements for IMB Issuers in government securitiza- tion guaranty programs.