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CHLA Statement on Ginnie, FHFA Standards: Scaled back iMB requirements are a significant improvement and appreciated-
but concerns remain about impact on smaller iMBs

Wednesday, August 17, 2022
Media Contact: Scott Olson

The Community Home Lenders of America (CHLA) – representing the recently merged entities of the Community Home Lenders Association and the Community Mortgage Lenders of America – today issued the following statement in response to today’s release by Ginnie Mae of Issuer financial requirements and by FHFA of GSE seller/servicer financial requirements.

“The Community Home Lenders of America (CHLA) appreciates the fact that Ginnie Mae and FHFA listened to our Smaller IMB perspective – scaling back the 2% Hedging and Risk-based Capital Requirements and pushing back the effective dates. 

 However, with these enhanced requirements coming out the same week that Wells Fargo is announcing a major retreat from mortgage lending, CHLA expects to suggest further modifications so that the critical access to mortgage credit role IMBs play is not diminished”

Both predecessor organizations (CHLA and CMLA) previously submitted detailed letters (enclosed) on Ginnie Mae and FHFA proposed changes – emphasizing the importance of scaling back the new hedging and risk-based capital requirements and recognizing that smaller IMBs pose no real financial or systemic risk to Ginnie Mae or the GSEs.