Issuers of mortgage-backed securities that are guaranteed by the Government National Mortgage Association are now subject to revised capital requirements.
The revisions went into effect on Oct. 1.
In bulletin APM 11-16, the government-owned corporation said the new institution-wide capital requirements apply to banks and thrifts that issue single-family, multifamily and home-equity conversion mortgage MBS. They also apply to holding companies for banks and thrifts.
The tier 1 capital/total assets ratio must be at least 5 percent, while the tier 1 capital/risk-based assets ratio minimum is 6 percent, according to the government-owned corporation. In addition, the total capital/risk-based assets ratio needs to be 10 percent or more.
Ginnie said that the formulas don’t apply to credit unions.
But credit unions and subsidiaries of banks and thrifts are subject to the same requirements that non-banks are subject to. In these cases, the total adjusted net worth/total assets must be at least 6 percent.
