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Ginnie Mae pushes standardized loan level data to cut cleanup work
Ginnie Mae President Joe Gormley said improved data quality could reduce friction for issuers and help MSRs become more transferable, while enabling earlier risk detection.
HousingWire reports Ginnie Mae President Joe Gormley said the agency is prioritizing standardized loan level data and automation to reduce the need for costly bad data cleanups. He discussed a shift toward a more digital operating model organized around a single source of truth for loan level information at this week’s Mortgage Industry Standards Maintenance Organization, or MISMO, Fall Summit in Reston, Virginia.
According to Gormley, the effort is intended to lower friction across the issuer ecosystem, improve timing and quality of risk detection, and make mortgage servicing rights (MSRs) more readily transferable. He also described the changes as creating additional paths for private capital to participate in the Ginnie Mae ecosystem.
Ginnie Mae, unlike Fannie Mae and Freddie Mac, does not originate or buy mortgages. Instead, as HousingWire notes, the government corporation within the U.S. Department of Housing and Urban Development guarantees timely principal and interest payments on mortgage backed securities backed primarily by Federal Housing Administration, Department of Veterans Affairs, and U.S. Department of Agriculture loans.
HousingWire added that agency mortgage backed securities represent the world’s second largest fixed income market after U.S. Treasurys, with a meaningful share of investment coming from overseas. Gormley’s comments tie better loan level data to more efficient capital movement in the government backed housing finance pipeline.