As the rest of the industry braces for the potential onslaught of forbearance and the pressure it will put on servicers, Ginnie is open for business. They've retasked their PTAP facility, initially prepared to provide short term liquidity to servicers during disasters (once thought to be only flood and fire), and will issue funding for April! Slow clap incoming.
Announced in APM 20-03, applications for April assistance were due April 13th. Assistance is supposed to be only as a last resort and will require full repayment, but importantly requests for assistance do not qualify as default. And learning from prior lessons, the extension of credit has teeth... the servicer can't make dividend payments, repurchase shares, or increase cash compensation to executives.
Geaux Ginnie!
Commentaires