• Plan Ginnie Mae Implementation
  
• Hold Internal Kickoff Meeting
• Contact Ginnie Mae EDI Team
• Submit EDI System Agreement and Trading Partner Profile

The first step in implementing a successful EDI program is to ensure that the key players within your organization have reached consensus on your EDI initiatives. It is critical that your EDI team has done the following:

• Developed an overall organizational direction regarding EDI
• Established goals for your EDI initiatives
• Identified decision-makers for initiatives

Your EDI team should consist of a cross-section of your organization, including senior executives, analysts, and technical experts. Organizational support is essential to the success of an EDI program. The time that it takes to complete this step will vary greatly from trading partner to trading partner depending on project plans and available resources.

After you have developed your overall organizational EDI goals, it is time to begin planning your Ginnie Mae EDI implementation. To create a realistic project plan, all members of your team, including both business analysts and information technology professionals, should be available. For Ginnie Mae's EDI program, it is recommended that you do the following:

• Assign roles and responsibilities to your EDI team
• Discuss hardware, software, training requirements and budgets
• Assign action items to each team member
• Develop a project plan for EDI implementation

Once you have completed the steps outlined in Step 1 - "Plan Ginnie Mae Implementation," it is recommended that you conduct an internal kickoff meeting. This meeting will communicate the various tasks, roles, and responsibilities that are necessary to successfully implement your EDI program.

Once you have held your kickoff meeting, you should call Ginnie Mae's EDI Hotline at 1-888-GINNIE4 Option 1 to discuss the next steps for your EDI initiatives, as well as any issues that have arisen. Items that should be discussed include:

• Telecommunications method
• Preliminary Ginnie Mae testing schedule
• Ginnie Mae EDI data requirements

Ginnie Mae's EDI Team will assist you with items associated with your organization's implementation. Ginnie Mae's EDI Team has been working with your fellow trading partners within the Ginnie Mae program and can provide helpful suggestions on the most efficient ways to become EDI-capable.

Once you have reached the scheduling stage of your implementation, please submit both your completed EDI System Agreement and the Trading Partner Profile which are located in Appendices D and F. It is very important to fully complete these documents and submit them in a timely manner to assist us in preparing for your EDI system test.

The EDI System Agreement is a contract between you and Ginnie Mae that allows you to exchange information in this new format. Issuers using GinnieNET may have already signed this agreement and sent it to The Chase Manhattan Bank. Another signed agreement or a copy should be sent to Ginnie Mae.

The Trading Partner Profile provides Ginnie Mae's EDI team with information about your technical capabilities and EDI readiness in order to justify future changes and enhancements to Ginnie Mae's EDI program.

• Evaluate and Select Operating Platform
• Identify EDI Translation Software and Telecommunications Products Available
• Develop a Short List of EDI Translation Software and Telecommunications Products
• Evaluate and Select EDI Translation Software and Telecommunications Products
• Plan Application Interface
• Develop Configuration and Test Strategy

The second step in implementing a successful EDI program is to make sound decisions about your technology infrastructure. To accomplish this, it is important to perform an assessment of the technologies that your organization currently uses, and the technologies that you will need to acquire for your EDI initiatives. Additionally, you must identify available EDI software packages, develop a short list of products that meet your organization's requirements, and evaluate and select the products that best suit your organizational needs. You will also need to plan the interface between your business application and the EDI system. The time that it takes to complete this step will vary greatly from trading partner to trading partner depending on project plans and available resources.

This section describes the various components of an EDI infrastructure. It will provide a detailed outline of how to assess your current technology, as well as a structured approach to assessing and evaluating various technology options.

Your organization may already have a hardware platform that is sufficient for your EDI needs. EDI solutions are available for almost any system on the market today. Examples of supported platforms are mainframes, minis, and personal computers. The first step is to evaluate the appropriate operating platform (for example, UNIX, Microsoft Windows NT, Microsoft Windows 95, etc.) for your EDI infrastructure. The following steps will guide you through this process:

• Research current operating platforms in use within your organization, and make a list of all the platforms that would be able to support your EDI initiatives.

  This will require technical decisions involving processing power, disk space availability, and utilization rates (for example, if the current system is utilized at a rate close to capacity, it may not be feasible to use as your EDI system).

• Research new operating platforms that will meet your EDI needs. This will require decisions involving the technological direction of your organization, hardware budgets, and current technical capabilities.

At this point in the EDI implementation process, it is not imperative to reach a final decision on your EDI product, however, it is important to identify all of the products available to meet your organization's EDI requirements. Many EDI and Electronic Commerce resources identify and publish lists of EDI software vendors.

As the preliminary list of possible EDI translation software products tends to be fairly long, it is recommended that a short list of EDI translation software products be created. The following criteria may help narrow down the possible products:

• Operating systems supported
• Software functionality such as mapping, translation, and communication
• Vendor experience
• Your company's specific criteria (such as security)

All organizations will use different criteria to create their EDI translation software short list. These criteria are provided to give you an example of the types of factors you should consider when developing a short list.

Once you have determined the criteria that your organization will use to create a short list, it is useful to create a matrix that documents the results of the short list. Table 3-1 provides a sample EDI Translation Software Product Short List.

Throughout this process, you will find that each decision you make has an impact on other decisions to be made about the EDI System. For example, once you have evaluated translation software, you may discover that the software package selected works only on one type of hardware platform, making your hardware requirements more definitive.

After you have created a short list of possible EDI translation software packages, you should conduct a more detailed review of each package. Prior to evaluating the packages themselves, the first step is to identify your business and technical requirements. These requirements will serve as a checklist during the evaluation. You may want to include the following items in your list of requirements:

• User references
• Hardware system compliance
• Support for EDI standards
• Mapping and translation features
• Telecommunications features (verify that it supports Ginnie Mae's required telecommunications methods defined in Section 2 - EDI Fundamentals)
• Data handling (interfaces, edits and validations, security, etc.)
• Vendor services
• Cost

Occasionally, organizations choose to internally develop an application to handle the translation function. However, this method is not recommended for most issuers.

A matrix is often created to assist in the ranking of available products against your organization's EDI requirements. Table 3-2 provides an example of an evaluation matrix and sample EDI translation software selection criteria.

• ANSI ASC X12

• Code Conversion
• Non-standard Codes
• Processing Speed
• Error Handling

• Telecommunications Capability
• VAN Compatibility
• Multiple VAN's
• Direct Connection Capability

• Automatic
• Retrieve Outgoing
• Retrieve Incoming

• Data Transmission
• Mapping/Translation
• Archiving

• Translation
• Trading Partner
• Unattended Operations

• Software Support
• On-Line Help
• 800 Number
• Standard Upgrades

• Package Price
• Annual Maintenance Fee
• Standards Upgrades
• Cost of Platform Upgrades
• Vendor Training Charges
• Vendor Support Charges
• Other Costs

• Other Criteria
• Other Criteria

As shown in Figure 3-2, the application interface is the component of an EDI system that acts as the broker between the EDI translator and the business application. The application interface may be different for each trading partner. For most application interface components you will need to take the following steps to facilitate communication and compatibility between the EDI component and the business application:

• Create the ability to transfer loan data from the application to the EDI system
• Modify the data structures of your loan processing application as required to meet 203 standard formatting requirements
• Modify the validation routines of your loan processing system to correct known data quality problems or data quality problems identified during system testing
• Create the ability to accept and reconcile functional acknowledgment data into the loan level system

Your organization's normal systems maintenance and configuration management approach should be taken into consideration when planning this part of your EDI implementation.

As you are nearing the end of the evaluation phase, and as you continue through the implementation, you will need to revisit regularly your EDI System configuration and make certain the different components of your system are working together. As you add each new component to your system, you may encounter incompatibilities. Incompatibilities can often have the single largest negative impact on an otherwise flawless project plan. As you progress through design and into the implementation and testing of your system, evaluate each individual unit on its own, as well as with the entire system.

• Schedule EDI System Test with Ginnie Mae's EDI Team

Once you have completed Step 1 - "Plan Ginnie Mae Implementation" and Step 2 - "Assess and Evaluate Technology," you should contact Ginnie Mae's EDI Team at 1-888-GINNIE4 Option 1 to schedule EDI testing and discuss next steps.

The following is a list of items to be addressed during this scheduling process:

• Confirm telecommunications method
• Discuss the testing timeline and set milestones
• Review testing procedures
• Schedule connection attempts with Ginnie Mae's EDI Team
• Schedule transmission times with Ginnie Mae's EDI Team

Throughout the EDI implementation process, you will be in constant contact with Ginnie Mae's EDI Team regarding many different issues. Due to differences in project plans and available resources, the time that it takes to complete this step will vary from trading partner to trading partner.

• Purchase Hardware and Software
• Configure Hardware and Software
• Establish and Test Telecommunications Connection
• Develop Application Interface
• Perform EDI Unit Testing

Now that you have completed the first three steps, your organization should be ready to establish its EDI environment. The time that it takes to complete this step will vary greatly from trading partner to trading partner depending on project plans and available resources. The actions outlined here provide a general overview of the tasks that must be accomplished to establish your EDI environment. Every step may not necessarily apply to your organization.

Purchase Hardware and Software

The first step is to purchase the components of the EDI infrastructure you selected during your technology assessment and evaluation. These items can be categorized as follows: Operating platform hardware and software, telecommunications hardware and software, and translation software.

We recommend that you request competitive bids from multiple vendors during your purchasing process, especially if you are purchasing major hardware components.

Configure Hardware and Software

The next step is to configure the hardware and software. This involves setting up any new systems, installing any software, and testing these components to verify that your system operates as expected. The actual requirements for this task depend upon the hardware and software that you purchased. You will need to work closely with your hardware and software vendors.

Establish and Test Telecommunications Connection

To finalize the establishment of your EDI test environment, you must install and test your telecommunications connection. The exact steps are dependent upon the telecommunication method chosen. The following paragraphs outline the major steps for each telecommunication method.

If you are a current user of the Ginnie Mae BBS, you may continue using your current configuration. Ginnie Mae's EDI Team will need to provide you with access to the EDI upload and download file area.

Establishing the BBS connection may be the least expensive and simplest connection method available. However, this option is not available to all trading partners. This option is not suitable for issuers with extremely large submissions. Once this connection is established, your EDI test data will be transferred to File Area 8 on the Ginnie Mae BBS. When you complete the testing requirements and move to production EDI, your data will be sent to File Area 11. For additional technical information regarding Ginnie Mae's BBS, please see Appendix H: Using the Ginnie Mae BBS, or call the Ginnie Mae EDI Hotline at 1-888-GINNIE4 Option 1.

The following list details the steps that must be completed to prepare for and establish an EDI connection to the BBS:

• Call the Ginnie Mae EDI Hotline at 1-888-GINNIE4 Option 1 if you are a new BBS user to get a User ID and password
• Select and purchase a modem
• Install modem and configure connection to the Ginnie Mae BBS
• Connect and login to the Ginnie Mae BBS

VAN Connection

Ginnie Mae utilizes Inovis, Inc. for its VAN services. However, you may use any VAN you prefer. However, if a VAN other than Inovis, Inc. is used, Ginnie Mae requests that an Interconnect Mailbag message be exchanged between your VAN and Inovis, Inc. for transaction tracking purposes.

The following list outlines the steps that must be completed in order to prepare and establish a VAN connection:

• Select the VAN you will use to connect to Ginnie Mae
• Contact the selected VAN and outline all transmission requirements (including interconnect messages, if applicable)
• Sign service level agreements with VAN
• Coordinate with Ginnie Mae's EDI Team, Inovis, Inc., and any other VAN for transmission details such as IP addressing and mailbox structures
• Select the telecommunications method that you will use to connect to the VAN (asynchronous Frame Relay, ISDN, etc.)
• Purchase and install all hardware necessary to facilitate the connection (asynchronous modem, network terminator, ISDN modem, router, etc.)
• Configure the connection and test data transmission to the VAN

You will work closely with your VAN's account representative to complete these steps.

ISDN Connection

ISDN is an all-digital communications line that enables voice and data to be sent over an ordinary telephone line. Supported protocols are TCP/IP for connectivity and FTP for data transportation. Future initiatives may include support for multiple telecommunications options and other protocols.

The installation costs associated with an ISDN line will vary from location to location. Competitive bidding can often reduce or eliminate some of the installation costs. In addition to installation costs, you will be responsible for costs associated with the line.

Hardware requirements for an ISDN connection can be minimal. The following components are necessary for ISDN connectivity:

• Network terminator
• ISDN modem
• Router (depending on your current technology)

ISDN modems can be purchased which contain built-in network terminator features. These modems typically range in price from $200 to $500. In some instances, a router may be needed to create a connection to your current technical infrastructure.

The following list of steps must be completed to establish an ISDN connection to Ginnie Mae:

• Contact telecommunications vendors (and long distance vendors if necessary) and arrange for the ISDN installation
• Purchase necessary hardware (such as network terminator, ISDN modem and router)
• Contact Ginnie Mae's EDI Team and configure hardware with Ginnie Mae's ISDN specifications
• Test ISDN connectivity with Ginnie Mae

Web EDI

Trading Partners with 600 or fewer loans to report may use Ginnie Mae's Web EDI application to submit loan level data. To be able to use the Web EDI application, you first must register as a Web EDI trading partner, which is done at the Ginnie Mae Web site. Appendix J contains a detailed description of the Web EDI process. You also may contact the Ginnie Mae EDI Team at 1-888-GINNIE4 Option 1. We will be happy to go through the registration process with you step-by-step. You will need the following information to register as a Web EDI trading partner:

• Company information (i.e., name, address, telephone)
• Email address
• DUNS (Dun and Bradstreet) number - if you do not know your company's DUNS number, it may be obtained from Dun and Bradstreet's web site at http://www.dnb.com/dunsno/dunsno.htm

The Web EDI application contains instructions and an automated Help facility to guide you through the data entry and submission process.

Develop Application Interface

Depending on your current infrastructure, you may need to develop or modify your application interface. This interface will represent the bridge between your existing loan level system and your EDI translator. As a general rule, the business application performs data content validation and lookups, while the translator performs EDI format and syntax checking. Furthermore, the application interface should be created in a flexible and portable manner so that changes to the translation software or maps do not adversely impact your application. Once your application interface is complete it should be thoroughly tested, both alone and in conjunction with the translation software and telecommunications method.

Perform EDI Unit Testing

Once all hardware and software has been installed and configured, your telecommunications connection established, and your application interface programs tested, you are ready to conduct EDI unit testing.

EDI unit testing includes testing of all of the individual components of your EDI system to verify that they are functioning as expected. Once you have established that your EDI system is working correctly, you are ready to begin testing with Ginnie Mae.

• Meet Test Criteria
• Validate Test Submission
• Repeat Process

Note: This step is not applicable to Web EDI users.

Once your organization's EDI environment has been established and internally tested, you may begin submitting test data to Ginnie Mae. Ginnie Mae requires three "clean" (error-free) successful test submissions from each trading partner prior to submitting production data via EDI. The time that it takes to complete this step will vary greatly from trading partner to trading partner, depending on available resources.

This section describes the procedures a trading partner will follow to begin submitting test data to Ginnie Mae.

NOTE: The test file submissions described in this section DO NOT replace your loan level data. The test file submissions described in this section are for EDI testing purposes only and you must continue submitting your loan level data utilizing your current non-EDI method, until you are approved for production EDI.

Meet Test Criteria

Ginnie Mae has specific requirements for trading partners to complete before submitting production loan level data via EDI. All trading partners must submit a minimum of three "clean" (error-free) 203 Secondary Mortgage Market Investor Reports, two of which must be in succession. The EDI data testing criteria for individual issuers and service bureaus or sub-servicers are slightly different. This is fully explained later.

Each EDI test submission requires a comparison file to be forwarded to Ginnie Mae's EDI Team. A comparison file should contain loan level data in the non-EDI Ginnie Mae proprietary format that you currently use every month. The non-EDI comparison file should contain the same data submitted in the EDI test 203 Secondary Mortgage Market Investor Report using your current submission method such as BBS, floppy disk, reel tape, or cartridge.

Note: Please use "EDI Test" labels to properly identify test media. All testing media should be forwarded to the following address:
Ginnie Mae's EDI Team, One Curie Court, Rockville, Maryland 20850.

Complete testing of the transfer of data for an issuer can be accomplished in three submissions.

Note: Each test builds on the previous submission. Therefore, each submission must be transmitted in the order specified below.

1. "Clean" test submission with only a portion of the issuer's portfolio, and with a submission indicator of type 00 (Original).
2. "Clean" test submission with the issuer's entire portfolio, and with a submission indicator of type 15 (Re-submission).
3. "Clean" test submission with the issuer's entire portfolio, and with a submission indicator of type 41 (Corrected and Verified).

Each one of these tests must be executed with complete accuracy. Issuers will not be approved for EDI production data until each of the test criteria has been met.

Note: Issuers using a Service Bureau or third-party software vendor are required to submit only one successful test submission of their entire loan portfolio.

Service Bureau/Sub-servicer Test Criteria

Complete issuer data testing for a service bureau or sub-servicer can be accomplished in three submissions. Each submission is detailed below:

1. "Clean" test submission with only a portion of the service bureau or sub-servicer's portfolio, and with a submission indicator of type 00 (Original).
2. "Clean" test submission with the service bureau or sub-servicer's entire portfolio, and with a submission indicator of type 15 (Re-submission). If the entire portfolio contains more than one issuer, a minimum of two transaction sets (See Section 4 - Mapping) must be sent during the testing process. Each issuer's data must be fully contained within a transaction set.
3. "Clean" test submission with the service bureau or sub-servicer's entire portfolio, and with a submission indicator of type 41 (Corrected and Verified). If the entire portfolio contains more than one issuer, a minimum of two transaction sets must be sent during the testing process. Each issuer's data must be fully contained within a transaction set.

Each of the test criteria must be executed with complete accuracy. Service bureaus and sub-servicers cannot become active EDI trading partners until each test criterion has been successfully met.

Validate Test Submission

Once Ginnie Mae receives the test data submission, multiple tests will be conducted to verify data accuracy. A 997 (Functional Acknowledgment) transaction set will be generated for the issuer indicating whether the test data submission passed the translation test. Additionally, Ginnie Mae's EDI team will provide a status report for each submission that will provide information about the submission, including error detail, submission information, and next steps.

Repeat Process

The testing process must be repeated when the test data failed translation and steps must be taken to correct errors. This notification will be provided to you in the status report. Once you have corrected the errors, the test data submission must be repeated. Once you have completed three successful transmissions, you are ready to move into production.