Ginnie Mae is building up its monitoring and risk units so it can spot MBS issuers and servicers who may be getting into trouble and possibly prevent another Taylor, Bean & Whitaker collapse.
The risk unit is developing a scorecard of factors that “tend to correlate with an issuer going out business,” Ginnie Mae president Ted Tozer told NMN.
When it looks like some of those traits are developing, he said, the monitoring folks will start spending more time with the issuer or servicer.
In August 2009, an Ocala, Fla., mortgage firm called Taylor, Bean & Whitaker suddenly collapsed after a federal probe discovered evidence of fraud and fake assets. At the time, TBW held $26 billion in Ginnie Mae servicing.
Today, Ginnie Mae still holds $13 billion in MSRs that are left over from the now-defunct TBW.
Ginnie Mae has hired a servicing broker to prepare the ground for a sale. “The broker is helping us seize up the market to see how we should package it,” Tozer said in the interview.
But the TBW sale does not appear to be imminent. Bank of America is currently servicing the TBW portfolio. But at B of A’s request, Ginnie Mae will transfer the MSRs to a new servicer. The new servicer should be selected in a few weeks.