Ginnie Mae Revises Capital Requirements for Credit Unions, Housing Finance Agencies

Ginnie Mae amended its capital requirements for federally insured credit unions and state housing finance agencies.

APM 22-08 addresses how Ginnie Mae’s capital standards consider delinquent loans that are eligible for repurchase but have not yet been bought out of Ginnie Mae MBS pools. Specifically, APM 22-08 explains that Total Assets do not include Ginnie Mae Loans Eligible for Repurchase when calculating an institution’s leverage ratio.

“These changes to our institution-wide capital requirements accomplish two things – they harmonize our program requirements with standards enforced by other federal entities, and they better reflect the unique financial status of state housing agencies,” said Ginnie Mae President Alanna McCargo. “This is important because credit unions and state housing finance agencies play critical roles in supporting community-based lending, particularly in underserved areas.”

McCargo noted Ginnie Mae recognizes that capital requirements imposed by federal prudential regulators “strengthen our industry partners and satisfy our need for appropriately capitalized counterparties.” By exempting state HFAs from the capital requirements, McCargo said Ginnie Mae recognizes state sponsorship of these agencies enhances their counterparty standing.