Ginnie Mae will give financial institutions more time to comment on a plan that will impose new risk-based capital requirements for non-banks and make it clear that the changes will not take effect this year.
Ginnie, a branch of the Department of Housing and Urban Development, said late Thursday that at her request for posts she would extend the comment deadline by 60 days to October 8. The surety agency had requested feedback on a plan to increase net assets and liquidity requirements for all financial institutions that issue Ginnie Mae securities. Ginnie initially gave the lenders 30 days to respond.
The plan has sparked an outcry among mortgage lenders for subjecting non-banks to a 10% risk-based capital ratio – with a 250% risk weight for mortgage service rights.
"This enhancement recognizes the importance and interest of the proposal, the desire from stakeholders for more time, and Ginnie Mae's commitment to carefully review submissions, analyze data and ensure a collaborative comment process," Ginnie said in a press release.
Ginnie also said that she removed references from the plan, "suggesting that revisions to the existing financial requirements for the audited 2021 financial statements will take effect as potential changes may take longer to review and finalize."