Feds Revise Ginnie MBS Reporting Rules

Federal banking regulators have changed the reporting requirements for delinquent loans in Ginnie Mae mortgage-backed securities, despite opposition from Ginnie issuers.Since seller-servicers have an "unconditional" option to repurchase delinquent mortgages from Ginnie Mae pools, the regulators have determined that these loans should be reported as delinquent in the June 30 Call Report. "A seller-servicer must report all delinquent rebooked Government National Mortgage Association loans that have been repurchased or are eligible for repurchase as past due in Schedule RC-N in accordance with their contractual repayment terms," according to supplemental instructions for the June 30 Call Report. To accommodate industry concerns, the regulators have created a new line item for Ginnie repurchased loans. "We do read the comments," one regulatory accounting expert said. Ginnie Mae can be found online at http://www.ginniemae.gov.