The Mortgage Bankers Association proposed to Ginnie Mae a new securitization product, seeking to enhance private capital liquidity during economic stress periods, inspired by HMBS 2.0.
MBA president Bob Broeksmit stated, 'This product would expand liquidity for government servicing through all economic cycles,' reinforcing the importance of timely financial responses to market fluctuations.
The EBO security aims to alleviate ongoing timing mismatches within Ginnie Mae's program, a concern for both issuers and regulators, enhancing operational efficiency in servicing.
By learning from the HMBS 2.0 model, the MBA demonstrates a strategic approach to address liquidity challenges that developed during the economic downturn, particularly after significant lender bankruptcies.
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