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GNMA Has Interest in Risk Sharing.(Brief Article)

Mortgage Servicing News

| March 01, 2001 | COPYRIGHT 2001 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

The Government National Mortgage Association is once again considering a private/public risk sharing arrangement on certain high loan-to-value ratio mortgages, industry officials said last week.

The GNMA "Choice" concept, as it is known, would cover residential loans where the LTVs are between 90% and 97%.

The mortgages, which would carry both government insurance and private mortgage insurance (PMI), would then be securitized.

In written remarks to Congress, new Housing and Urban Development secretary Mel Martinez noted that he will continue discussions, "with the private sector to develop single-family risk sharing approaches that benefit the ...

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Source: HighBeam Research, GNMA Has Interest in Risk Sharing.(Brief Article)

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