Borrowers are sometimes mistakenly advised that Ginnie Mae has the authority to resolve servicing issues in connection with their loans. On the contrary, Ginnie Mae is the guarantor of the security in which the loan serves as the collateral. As a condition to providing the guaranty, the servicer agrees to service the loan and holds the authority to perform servicing functions such as determining eligibility for loan modifications and other loss mitigation options.
Though it is a common misconception, Ginnie Mae does not purchase loans from mortgage lenders, make loans to borrowers, or determine eligibility for loan modifications. The loan modification/loss mitigation process is managed by the loan servicer who is responsible for servicing loans according to the guidelines of the agency providing the loan insurance or guaranty. Therefore, Ginnie Mae does not make any servicing determinations in connection with borrowers’ loans.
Nevertheless, Ginnie Mae is happy to provide information that may help consumers get in touch with the appropriate agency.
A consumer’s mortgage company handles the day-to-day tasks associated with managing their mortgage loan. The mortgage company’s duties include, but are not limited to:
Collecting loan payments
Responding to borrower concerns
Holding funds for payment of property taxes and hazard insurance
Counseling delinquent borrowers
Providing loss-mitigation options
As such, consumers should first call the mortgage company to which s/he sends their monthly mortgage payments to determine who insures their loan. Consumers should check their monthly mortgage bill or payment booklet for a phone number or website address.
If a loan is insured by the Federal Housing Administration, the consumer should contact the FHA Outreach Center at 1-800-225-5342 or the National Servicing Center (NSC) at 1-877-622-8525.
If a loan is insured by the Veterans Administration, the consumer should call Veterans Affairs at 1-877-827-3702 to reach the nearest Loan Guaranty office.
If a loan is insured by Rural Development, the consumer should call 1-800-414-1226 to speak to a representative at USDA’s Centralized Servicing Center.
If a consumer’s mortgage is insured or owned by Fannie Mae or Freddie Mac, he/she should visit www.makinghomeaffordable.gov for more information.
Despite the availability of loss mitigation options, consumers still may not qualify for a loan modification. Consumers should work with their mortgage company and the insuring agency to decide which option, if any, is right for their unique situation.
Consumers can also contact a HUD-approved housing counselor, call HUD's interactive voice system at (800) 569-4287, or visit HUD's "Avoiding Foreclosure" web page to obtain helpful information and assistance on avoiding foreclosure.