The Government National Mortgage Association is doubling its net worth requirements for multifamily issuers to $1 million as well as imposing new capital and liquidity standards on firms.
The new requirements go into effect October 1, 2011 for existing MBS issuers that securitize government-insured multifamily, hospital and nursing home loans.
Currently, there are $50 billion of multifamily, hospital and nursing home Ginnie Mae mortgage-backed securities outstanding.
In fiscal year 2010, lenders originated $14.8 billion in these Federal Housing Administration-insured loans, a 120% spike from the prior year. More than $10.5 billion of these loans financed multifamily housing.
Ginnie recently hiked its net worth requirements for single-family issuers.
"In working to remain the best-in-class conduit for bringing capital into the U.S. housing mortgage system, we continue to implement policies that minimize risk to the U.S. taxpayer," said Ginnie Mae president Ted Tozer.
