Ginnie Mortgages Still Under Threat From Buyouts, RiskSpan Says

The threat of buyouts of delinquent loans from Ginnie Mae pools still hangs over the mortgage bond sector, according to Don Brown, senior managing director at the mortgage analytics firm RiskSpan Inc.

While the surge in Ginnie Mae buyouts seen in June subsided in July -- and is expected to continue to slumber in August -- that wave came from bank servicers cleaning up their delinquent loans, as non-bank servicers remained mostly on the sidelines.

“Currently, non-banks service roughly 75% of the outstanding Ginnie Mae universe. That size, combined with their recent slowness in buying out eligible delinquent loans, ...