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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 72 December 2024 J O U R N A L will review information submitted quarterly on the issuer's Mortgage Banking Financial Reporting Form and calculate an MSR value adjustment, the percentage by which the issuer's MSR values will be reduced for the purposes of calculating RBCR. The adjustment will be based on the issuer's hedging ef- ficacy (as defined in the APM) over the most recent 12 quarters. If issuers have not hedged in each of the last 12 quar- ters, Ginnie Mae will use the average of hedging performance where hedging results are available. The adjustment is strictly for compliance with RBCR; the issuer's adjusted net worth will not be adjusted, subject to the following minimum eligibility requirements. To be eligible for risk-based capital relief, issuers, at a minimum, must have hedged: • At least one of the most recent four quarters, and • At least four of the most recent 12 quarters. "As we have said previously, Ginnie Mae will continue to look for ways to adjust our RBCR, where industry practice ref lects demonstrable risk miti- gation," Ginnie Mae Acting President Sam I. Valverde said. "With RBCR set to go into effect at the end of the year, we are pleased to provide this relief for proven hedging strategies." In APM 22-09, Ginnie Mae an- nounced the implementation of the RBCR requirements for institutions seek- ing approval as Ginnie Mae single-family Issuers (SF Applicants) and Ginnie Mae single-family Issuers (SF Issuers) that are non-depository mortgage companies. Ginnie Mae recently announced that its mortgage-backed securities (MBS) portfolio outstanding grew to $2.64 trillion as of September 2024. Ginnie Mae also issued $45.2 billion in total MBS, resulting in a net portfolio growth of $16.2 billion. This issuance supports the financing of over 132,000 households, including more than 61,000 first-time homebuyers, and ap- proximately 65% of issuances ref lected new home purchases. VA LOANS EMPOWERING VETERAN HOMEOWNERSHIP M ore than three out of four (74.5%) home sales with Vet- erans Affairs (VA) loans over the past year had a 0% down payment, and nearly eight out of ten (83.5% of ) VA home loan sales had a down payment below 10%, according to new informa- tion released by Realtor.com cele- brating the recent holiday of Veterans Day. According to recent Realtor.com research, VA borrowers are more than twice as likely as conforming borrowers to have made a small down payment, which lowers the upfront costs of homeownership. Down payments are a significant obstacle to homeownership. "Realtor.com compared loan characteristics of VA and conform- ing borrowers to highlight the many advantages that VA loans offer enabling Veteran households and the industry professionals working with them to better grasp the impact that this has on Veteran households and home- ownership," said Danielle Hale, Chief Economist at Realtor.com. "Despite the significant advantages provided to Veterans with VA loans, according to a survey conducted by Veterans United Home Loans, only 3 in 10 veterans and active-duty service members were aware of the zero down payment bene- fits of VA loans. With this research, we hope to empower Veteran households with the knowledge and tools they need to make informed decisions about their homeownership goals and financial well-being."