|1/6/2017 - APM 17-01|
Ginnie Mae hereby announces additional updates to the Mortgage-Backed Securities Guide, HUD Handbook 5500.3, Rev-1 (MBS Guide), including its Document Custody Manual, Appendix V-01 (DCM), as part of its initiative to revise the policies affecting pool certification and document review requirements.
Ginnie Mae has restructured certain provisions and cross-references in Chapter 11 and Chapter 13 of the MBS Guide in light of the revised DCM published on February 1, 2016. Ginnie Mae has also consolidated and restated certain provisions previously contained in Chapters 11 and 13 of the MBS Guide into Chapter 7 of the DCM to provide program participants with greater context surrounding Ginnie Mae’s requirements. Lastly, Ginnie Mae has updated the Frequently Asked Questions and the Lost Instrument Bond standard form contained in Chapter 9 and Appendix I of the Document Custody Manual, respectively, in response to issues submitted to Ginnie Mae after implementation of the revised DCM.
At the 2016 Ginnie Mae Summit, Ginnie Mae staff provided a preview of these updates and structural changes during the “Document Custody Manual FAQs and Guide Updates Session.” The presentation for this session is accessible in Ginnie Mae’s web site and at this link.
The updated MBS Guide and Document Custody Manual chapters referenced in this APM are published in Ginnie Mae’s website and are effective immediately. Please direct any questions you may have to your Ginnie Mae Account Executive in the Office of Issuer and Portfolio Management directly or at (202) 708-1535.
|12/21/2016 - APM 16-07|
Pursuant to the Housing and Economic Recovery Act of 2008 (HERA), the Federal Housing Finance Agency (FHFA) has announced increased conforming loan limits. Accordingly, Ginnie Mae is revising its definition of High Balance Loans as follows. Effective for issuances on or after January 1, 2017, a High Balance Loan is defined as a single-family forward mortgage loan with an original principal balance (minus the amount of any upfront mortgage insurance premium) that exceeds the following limits:
||Contiguous States, District of Columbia and Puerto Rico
||Alask, Guam, Hawaii, and the U.S. Virgin Islands |
High Balance Loans, are eligible for Ginnie Mae MBS subject to the restrictions detailed in Section 24-2(A)(1) of the Mortgage Backed Securities Guide, HUD Handbook 5500.3, Rev-1 (MBS Guide).
If you have any questions about this announcement, please contact your Account Executive in the Office of Issuer and Portfolio Management directly or at (202) 708-1535.
|11/17/2016 - APM 16-06|
In an effort to provide timely disclosure to Investors in HECM Mortgage Backed Securities (HMBS), Ginnie Mae is moving up the deadline for addressing exception feedback and corrections to the HMBS Issuer Monthly Report of Pool, Loan and Participation Data (Monthly Reporting Data) in Ginnie Mae’s Reporting and Feedback System (RFS).
The monthly reporting cycle consists of three elements: Initial submission of the Monthly Reporting Data, exception feedback, and corrections. The deadline for Initial Submission of the Monthly Reporting data will remain the same and will continue to be due no later than 7:00PM (Eastern Time) on the second (2nd) business day of the month following the reporting month. In contrast, the deadline for addressing exception feedback and making corrections is changing as follows.
Beginning with Monthly Reporting Data due on January 3, 2017 (for the December 2016 reporting period), the deadline for corrections is being bifurcated into two dates depending on the severity of the exception:
- Critical RFS exceptions that are designated as Errors (“E”) and Critical (“C”) related to the pool, loan and/or participation records must be corrected no later than 7:00PM (Eastern Time) on the 4th business day of the month following the reporting month.
- RFS exceptions that are designated Matching (“M”) and Low (“L”) must be corrected no later than 7:00PM (Eastern Time) on the 10th business day of the month following the reporting month.
The Reporting and Feedback System (RFS) HMBS Issuer Monthly reporting of Pool, Loan, and Participation Data, Appendix VI-17 (Appendix VI-17) to the Mortgage Backed Securities Guide 5500.3, Rev-1 (MBS Guide), has been updated to provide definitions for the categories of RFS exceptions—Errors (“E”), Critical (“C”), Matching (“M”) and Low (“L”). The exception messages themselves, have also been added, and follow the record layout and definitions to which they relate.
In order to facilitate the accelerated reporting timeframes, Ginnie Mae is automating the distribution of exception feedback reports which will no longer be delivered to Issuers via email. Effective for reporting due January 3, 2017 (for the December 2016 reporting period), HMBS Issuers may obtain exception feedback reports from within the RFS module itself. Reports are available immediately after the file has been processed and can be viewed or downloaded under the HMBS Reporting and Administration (HRA) “Exception Feedback” Tab in RFS. For specific instructions on viewing and downloading Exception Feedback Reports, please consult the HMBS Issuer User Guide contained within the HMBS Reporting and Administration (HRA) “Exception Feedback” Tab in RFS.
Lastly, several data field definitions in Appendix VI-17 have been revised to provide users with a more complete and accurate description of the data being requested by each field, but these clerical revisions do not require HMBS Issuers to implement any additional data file changes.
If you have technical questions regarding this announcement, please contact the Issuer Support Group at 1-888-446-6434. If you have other questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly or at (202) 708-1535.
|10/19/2016 - APM 16-05|
The purpose of the Ginnie Mae Mortgage-Backed Securities (MBS) Program is to attract funding from capital market investors in support of government-insured and guaranteed housing programs, and to provide lower-cost financing for the homeowners those programs are designed to serve. Investor participation in the MBS program depends, in part, on a level of confidence that investment returns can be expected to be reasonably aligned with market conditions. Recent trends involving the rapid refinance of a small number of loans in Ginnie Mae pools, often originated at above market interest rates, have raised concerns about this alignment, and the impact of multiple, rapid refinance transactions on borrower equity and financing costs.
Ginnie Mae is therefore taking steps to reduce outlier refinance trends by adding a requirement for the inclusion of streamlined refinance loans in Ginnie Mae I single Issuer pools, and Ginnie Mae II Multiple Issuer Pools (MIPs). Effective with pool issuances on or after February 1, 2017, streamline refinance loans may be delivered into Ginnie Mae I single Issuer pools or Ginnie Mae II MIPs only if, at the time of the refinance, at least six consecutive monthly payments have been made on the existing loan. Streamline refinances of loans on which fewer than six consecutive monthly payments have been made may only be delivered into Ginnie Mae II custom MBS pools.
Ginnie Mae consulted and obtained the support of the insuring and guaranteeing agencies: the Federal Housing Administration (FHA); the Department of Veterans Affairs (VA); USDA Rural Development (RD); and the Office of Public and Indian Housing (PIH). The eligibility requirement described in this APM does not alter any program parameters or any standards or regulations established by FHA, VA, RD or PIH. Upon the effective date of the requirement described in this APM, including a streamline refinance loan into a Ginnie Mae I single Issuer pool or Ginnie Mae II MIP without the requisite payment history on the prior loan will constitute a violation of the Guaranty Agreement and the Mortgage Backed Securities Guide, HUD Handbook 5500.3, Rev-1.Ginnie Mae will continue to monitor the issue of rapid prepayment speeds and consider other measures to address security performance and borrower protections, as appropriate.
If you have any questions regarding this announcement, please contact your Account Executive in the Office of Issuer and Portfolio Management directly or at (202) 708-1535.
|6/7/2016 - APM 16-04|
Ginnie Mae has been actively working to improve the accuracy and efficiency of monthly investor reporting by consolidating investor reporting activities into the Reporting and Feedback System (RFS) within the Ginnie Mae Enterprise Portal (GMEP). Ginnie Mae is pleased to announce that the process for submitting the Issuer’s Monthly Summary Report and Certification, form HUD-11710D (HUD-11710D) for MBS Issuers, and form HUD-11710DH (HUD-11710DH) for HMBS Issuers, as well as the process for submitting the Issuer’s Monthly Remittance Advice, forms HUD-11714 and HUD-11714SN, are migrating from GinnieNET to RFS. Issuers will have access to the new streamlined reporting processes beginning in July 2016 and must use these streamlined processes to submit the data and certification(s) required for the June 2016 monthly reporting period.
Streamlined Process for Certifying an Issuer’s Monthly Report
Under the new streamlined approach, Issuers will no longer submit the monthly summary data and certification on forms HUD-111710D or HUD-11710DH. Rather, Issuers will be required to certify as to the accuracy and completeness of the pool, loan, and, if applicable, participation data reported in RFS by accessing a new monthly certification screen within RFS. Consistent with APM15-17, Issuers may delegate their monthly reporting certification responsibilities to an approved subservicer.
To perform the monthly reporting certification in RFS, an individual must have an active Ginnie Mae issued SecurID Token and be listed on the form HUD-11702 for the Issuer or its approved subservicer, as applicable. Appendix III-29 of the Mortgage-Backed Securities Guide, 5500.3, Rev.1 (MBS Guide), contains information on how to obtain a SecurID Token.
Appendices VI-05 and VI-21 of the MBS Guide, which contain the templates and instructions for submitting forms HUD-11710D and HUD-11710DH, are being reserved for reference purposes only as these forms will no longer be required for monthly reporting.
New Monthly Reporting Certification Deadline
Ginnie Mae is moving the deadline for certifying the data for each monthly reporting period. Previously, Issuers were required to submit and certify the form HUD-11710D and Form HUD-11710DH data by the fourth business day. Under the new streamlined reporting schedule, Issuers are required to complete the new certification in RFS between the tenth business day of the month and the fourteenth business day of the month, after all corrections to their monthly pool, loan, or participation data have been completed.
Any Issuer that makes corrections to their pool, loan, or participation data after they have completed the certification for that reporting period must recertify as to the accuracy and completeness of the corrected data. Issuers must perform any recertification by the fourteenth business day of the month. Any changes, corrections, or certifications submitted after the fourteenth business day will be considered events of non-compliance.
Streamlined Process for Submitting Remittance Advices for Certificated Ginnie Mae I Securities
Issuers of certificated Ginnie Mae I pools are required to submit Remittance Advice data (forms HUD 11714 and HUD-11714SN) to Ginnie Mae via GinnieNET. Effective July 1, Remittance Advice information must be reported to Ginnie Mae through a new online direct entry screen in RFS or by using GMEP’s file upload function.
Appendices VI-10 and VI-11 of the MBS Guide have been updated and contain the file layout(s) required for reporting remittance advice data as well as detailed instructions on reporting this information through GMEP. The deadline for submitting the remittance advice data to Ginnie Mae remains the eighth business day of each month.
Relevant System Access Instructions
The modernization section of Ginnie Mae’s website contains detailed information on the various system credentials needed to access and complete the new streamlined reporting processes outlined in this memorandum. Please note that any monthly reporting and remittance advice data submitted previously through GinnieNET will remain available for review, printing, and export.
Corresponding MBS Guide Chapter Changes
Chapters 4, 15, 17, and 35 of the MBS Guide have been modified in accordance with this APM. All MBS Guide changes referenced in this APM are effective for the June 2016 monthly report period (due in calendar month July 2016).
Please direct any questions you may have to your Ginnie Mae Account Executive in the Office of Issuer and Portfolio Management directly or at (202) 708-1535.