HMBS

Ginnie Mae Revises HECM MBS Servicing Fee Margin 

Ginnie Mae has announced a change in the Servicing Fee Margin for HECM mortgage-backed securities (HMBS).  Under the current program, Issuers are provided two different servicing compensation methods, a monthly flat fee or a basis point strip of the interest.  APM 11-06, which takes effect as of July 1, 2011, will revise the margin to a single option where Issuers must select a basis point strip.   The new plan will require that the Servicing Fee Margin that is added to the note rate of the HMBS must be at least 0.36 percent (36 bps), but not more than