The Community Home Lenders of America (CHLA) on Wednesday released a plan that it says would “modernize” Ginnie Mae, the government-owned company that manages the securitization of government-sponsored loans. The CHLA argues that Ginnie Mae has not been given sufficient budget authority by the congressional appropriations process despite the value it generates. Its plan takes aim at liquidity, budget authority, pay scales and other potential

Scott Olson, executive director of the Community Home Lenders of America (CHLA), said that the trade group was “pleased” that the FSOC has embraced its call to expand PTAP, “which would create a liquidity backstop.”

Scott Olson, executive director of Community Home Lenders of America, another trade group, said the FSOC report does not indicate significant taxpayer risk and only limited risk to the financial system as a whole. “Given the current homeownership affordability challenges, CHLA hopes regulators do not overreact to this limited risk with regulations and fees that restrict mortgage access to credit,” Olson said in a statement.

In its white paper, CHLA explained the mechanics of pricing by the credit reporting agencies. Although the credit reporting agencies blame FICO for the rate increases, CHLA said each of them also marks up the FICO wholesale price, essentially doubling the price. Those prices are then passed through to the resellers, the firms that lenders actually work with. Rob Zimmer, CHLA director of external affairs, said

Now, the CHLA commended the Federal Housing Finance Agency for reviving the title waiver pilot, which had gone by the wayside in August 2023. “CHLA applauds FHFA for this title pilot as it could save homeowners thousands of dollars when refinancing their home,” said Scott Olson, its executive director, in a statement.