Increasing Capital & Liquidity for GNMA Mortgage Servicing Rights

76 Pages Posted: 23 May 2018 Last revised: 2 Feb 2022

See all articles by Richard Christopher Whalen

Richard Christopher Whalen

Whalen Global Advisors LLC; Economic Advisory Committee of FINRA; Mortgage Bankers Association; National Mortgage News

Date Written: June 19, 2018

Abstract

This paper reviews the research literature concerning mortgage servicing rights (MSR) and mortgage finance more generally. We then review the history of financing the acquisition of MSRs in the market for loans guaranteed by the Federal Housing Administration (FHA) and securities guaranteed by the Government National Mortgage Association (GNMA). The paper then focuses on the credit relationship between GNMA and the issuers operating in that market, with particular emphasis on separating the loan servicing function from the investment in the MSR. The paper notes that state law regulation seems to be suppressing competition for GNMA MSRs by limiting participation by smaller investors. The paper makes several proposals as to amendments to the GNMA Acknowledgement Agreement (AA) governing the credit relationship between the FHA, GNMA and the issuer to support the goal of increasing the liquidity of the GNMA MSR market.

Keywords: Mortgage, Mortgage Servicing Rights, MSR, Federal Housing Administration, Ginnie Mae, HUD, Non-Banks, Lending, Servicing, Funding

JEL Classification: G00, G20, G23, G32, G33, G38, K2, K23, M2, M48, N2

Suggested Citation

Whalen, Richard Christopher, Increasing Capital & Liquidity for GNMA Mortgage Servicing Rights (June 19, 2018). Available at SSRN: https://ssrn.com/abstract=3176147 or http://dx.doi.org/10.2139/ssrn.3176147

Richard Christopher Whalen (Contact Author)

Whalen Global Advisors LLC ( email )

P.O. BOX 8903
SCARBOROUGH STATION
BRIARCLIFF MANOR, NY New York 10510-8903
United States
914-645-5304 (Phone)

HOME PAGE: http://www.rcwhalen.com

Economic Advisory Committee of FINRA ( email )

1735 K Street NW
Washington, DC 20006
United States

HOME PAGE: http://tinyurl.com/2bne6p

Mortgage Bankers Association ( email )

1919 Pennsylvania Ave
NW Washington, DC 20006-3404
United States

National Mortgage News ( email )

One State Street Plaza, 27th Floor
New York, NY New York County 10004
United States

HOME PAGE: http://https://www.nationalmortgagenews.com/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
661
Abstract Views
2,782
rank
54,866
PlumX Metrics