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Ginnie Mae published its first set of data on its Pass-Through Assistant Program (PTAP) on Friday and found it advanced $836,682 in April to three servicers.
The report states there is more than $1.9 trillion in outstanding principal and more than $651 million worth of loans went unpaid during the month. According to the report, 6.14% of all Ginnie Mae loans were not paid in April.
The current PTAP interest rate is 6.23%.
A Ginnie Mae source told MReport that it didn’t establish the program with a level of interest in mind.
“Ginnie Mae knew that a program like PTAP/C19 may be needed as Servicers respond to mortgage forbearance requests from homeowners,” the source said.
The company also said it will not be forecasting future usage of the program, as the PTAP is “here for servicers to use when they have exhausted other options as they manage the effects of the COVID-19 pandemic on their business.”
Ginnie Mae in April announced it was expanding its PTAP for servicers facing a temporary liquidity shortfall related to coronavirus.
Ginnie Mae states the application of the PTAP to the COVID-19 National Emergency allows servicers to apply for assistance meeting their contractual obligations to make “timely and full principal and interest payments” due to mortgage-backed securities (MBS) holders without being held in default.
“This assistance is intended to minimize disruptions in the mortgage servicing and MBS capital markets as borrower forbearance and loss mitigation programs are implemented to provide relief to homeowners affected by the COVID-19 National Emergency,” the release states.
Bloomberg previously reported that Treasury Secretary Steven Mnuchin said that there are currently no plans to create a Federal Reserve facility to inject funding into nonbank mortgage servicers.
He added recent government actions will help firms address the millions of borrowers missing their mortgage payments.
Mnuchin addressed Ginnie Mae’s Pass-Through Assistance Program to advance funds to mortgage bondholders, covering an obligation that would have fallen on servicers.
Bloomberg reported the Treasury Secretary told them in an interview that Ginnie Mae’s actions, combined with recent measures taken by the Federal Housing Finance Agency (FHFA), which regulates Fannie Mae and Freddie Mace, will “deal with liquidity concerns.”
