Ginnie Plans to Securitize Excess Servicing

Ginnie Mae has announced plans to have a program in place to allow issuers to securitize excess servicing fees by October of this year.Speaking at the California Mortgage Bankers Association's Western States Loan Servicing Conference, Michael Garcia, director of single-family housing at Ginnie Mae, said issuers will be able to securitize servicing spread in excess of 44 basis points on older loan pools and in excess of 19 bps on newer loan pools. He said securitizing excess servicing spread is designed to help lenders take risk off their balance sheets. "Our intent is to have a program in place in October of 2004," he said. Ginnie Mae can be found online at http://www.ginniemae.gov.