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A Ginnie Mae proposal to introduce a risk-based capital requirement for nonbanks has sparked an outcry from mortgage lenders that originate the vast majority of loans to first-time homebuyers and minorities.
Ginnie issued a
request for input in early July on a plan that would impose added net worth and liquidity requirements for all issuers. It would also subject nonbank lenders to a 10% risk-based capital ratio with a risk weight of 250% for mortgage servicing rights dramatically higher than the calculation for other assets.
State and federal regulators have sought for years to impose prudential regulation and stress-testing on nonbank lenders but the new Ginnie plan is the first to include a risk-based capital standard.