GNMA aims to stop churn

Category: RMBS

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In a move which should be a net benefit to RMBS, Ginnie Mae has taken steps to address churning in its RMBS programme, both to keep mortgage rates affordable and to preserve liquidity in the security. To that end it has notified a "small number" of issuers who are outliers among market participants in the Ginnie Mae multi-issuer MBS on the metric of prepayment speeds that such deviations from market norms are not acceptable.

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