Nationstar Mortgage has negotiated a deal to service Government National Mortgage Association loans for banks that don’t want to retain servicing themselves.
An announcement Monday indicated that a new servicing-released option on Ginnie Mae mortgages is being offered to members of the Federal Home Loan Bank.
FHLB members have access to Washington-based Ginnie’s mortgage-backed securities issuances through the Mortgage Partnership Finance Program.
The new servicing-released feature is being provided by Nationstar.
With the option, local community lenders that want to originate and sell government loans into the secondary market will have greater flexibility, the statement said.
The Mortgage Partnership Finance Program purchases
30-year and 15-year fixed-rate government-insured and -guaranteed mortgages originated by FHLB members then issues Ginnie Mae securities backed by the loans.
FHLB Chicago President Matt Feldman noted in the announcement that the new option will help FHLBank members can become more competitive in local home lending.
Ginnie Mae President Ted Tozer added, “This is directly in line with the mission of Ginnie Mae, which is to make sure that as many lenders as possible, regardless of their size, can access the capital markets, which in turn provides the credit access that is the foundation of the American mortgage finance market.”
