Ginnie May Play a Role in Warehouse Lending

The Government National Mortgage Association is poised to play a role in easing the warehouse lending liquidity crisis but does not think it will be a direct lender.In an interview with the American Banker GNMA president Joe Murin said the agency cannot become involved in warehouse lending without a change to its government charter but noted that "we certainly could help administer a program." He said one option is for GNMA to take possession of loans three days after they close and fund, instead of the 15 to 45 days it typically takes to put the mortgages in securitization pools. Depositories that hold warehouse loans on their books face a 100% risk weighting on such debts until the mortgages can be taken off the lines. Recently two of the largest players in warehouse lending—the PNC-owned National City and Guaranty Federal Bank—made plans to exit the business.