Brookings Institute Claims That Ginnie Mae Purchases Mortgages (Psst: They Don’t!)

By Anthony B. Sanders

Brookings Institute is an economic policy think tank in Washington DC. Brennan Hoban of Brookings has a proposal to redesign the mortgage market. 

But it is hard to take this proposal seriously since … Ginnie Mae INSURES mortgages, they do not purchase them from lenders.

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True, non-bank lenders like Quicken Loans (and now Amazon is jumping into the mortgage lending arena) are originating more loans than traditional bank lenders.

The author points out that 1) non-bank lenders like Quicken Loans are more vulnerable to liquidity problems if problems arise and 2) analysis should be performed at a local level, not just the national level.

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