Ginnie Mortgages Could See Heavy Buyouts, RiskSpan’s Kogler Says

About half of the Ginnie Mae mortgages in forbearance will drop into foreclosure or need a modification, said Bernadette Kogler, co-founder and CEO of mortgage analytics firm RiskSpan Inc.

As of the week ending August 2, the Mortgage Bankers Association data shows 5.2% of Fannie Mae and Freddie Mac borrowers and 10% of Ginnie Mae borrowers in forbearance. This is an improvement from their peaks of 6.4% and 11.8%, respectively.

The contrast between the conventional and Ginnie Mae forbearance rates are not surprising, according to Kogler. This is due to the relatively lower credit standards seen in Ginnie ...