Ginnie Mae Chief Trumpets Anti-Churning Efforts

With spreads between Ginnie Mae and Fannie Mae MBS narrowing, Ginnie Mae’s Chief Operating Officer Michael Bright took the opportunity to highlight the Agency’s progress in preventing churning and standardizing prepayment rates, according to a piece in Inside Mortgage Finance.

“The Ginnie spread has fallen almost half a point and our securities have become more liquid,” Bright noted, continuing to say, “We want to make sure we’re giving investors constant prepayment rates (CPRs) that they can model.” In this CPR initiative, Bright clarified that he was particularly interested in ensuring the prepayment speed is correlated to changes in the interest rates, rather than focusing on the overall level of prepayment speeds.

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