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Stakeholder Letters

Modernization of Ginnie Mae’s Securitization Platform
Published Date: 5/8/2013

A Message from Terry Carr, Senior Advisor of Communications and Congressional Relations:

Ginnie Mae is committed to building for its future. As a stabilizing force in America’s recovering housing market, Ginnie Mae maintains a keen focus on keeping its foundation strong. Insisting on sound financial discipline, the organization has skillfully managed risk and has organized its team for long-term success.

Ginnie Mae continues to evolve to meet the challenges of a changing and growing mortgage industry. The operations and functionality of Ginnie Mae’s securitization platform are essential to every aspect of our business. Our platform is the backbone of Ginnie Mae’s operations. Among other things, it manages the functionalities associated with pooling loans and issuing securities, including processing pool transfers, facilitating payments to investors and providing disclosures. Ginnie Mae’s securitization platform is currently undergoing a comprehensive, multi-year modernization effort. The modernization initiative includes: 

  • A substantial upgrade to Ginnie Mae’s Integrated Pool Management System (IPMS); 
  • The implementation of MISMO data standards; and, 
  • The introduction of loan-level disclosure.

Ginnie Mae is focused on replacing legacy systems and related infrastructure with more modernized capabilities, enhancing data consistency, standardization and governance, and increasing transparency of the mortgages backing Ginnie Mae guaranteed mortgage-backed securities (MBS). These advancements will provide Ginnie Mae with more agility and a greater ability to sustain long-term business growth. To date, we have made tremendous progress with these efforts and are moving full speed ahead.

Modernizing our securitization platform will improve and enhance the user experience for all of our stakeholders. By embracing new technology innovations, our goal is to ensure that Ginnie Mae is positioned to provide valuable products and services to Issuers and investors faster and more efficiently. For example, Issuers will experience our processes using a more user-friendly, online interface that will greatly reduce wait times and keep Issuers informed on a real-time basis.

Since commencing this multi-year project, we have clearly defined the architectural blueprint and the proposed infrastructure for the modernized system. The first phase of the effort, scheduled for completion by the end of the second quarter of 2014, focuses on the central component of the securitization platform – the IPMS. The IPMS performs three key functions: 

  • Securities Issuance 
  • Bond Administration 
  • Data Validation

The work being done on the IPMS platform will transition Ginnie Mae from a mainframe system to a more robust distributed server platform. Re-engineering IPMS functionality eliminates manual processes and paper-intensive activities, as well as reduces operation and maintenance costs. Further, this initiative will introduce e-signature solutions and a just-in-time ability to implement new products.

We have an ambitious agenda set for phase two of the IPMS modernization as well. Phase two includes specific changes to Multiclass functionality and enhanced investor reporting. The changes included in both phases will be supported by training sessions led by Ginnie Mae experts.

The two other critical elements that comprise Ginnie Mae’s securitization platform initiative are implementing MISMO data standards and enhancing disclosures. Meaningful developments have already been made in Ginnie Mae’s migration to MISMO, an effort to standardize the definitions of the data elements lenders are required to provide when issuing securities. Ginnie Mae will provide stakeholders with technical specifications and implementation guides, as well as a roadmap for Ginnie Mae’s Pool Delivery Dataset. In addition, we will be increasing the transparency of the mortgages backing Ginnie Mae securities by providing loan-level disclosures. Improving our securities disclosures will help us attract more global capital and meet the needs of our investors more effectively, enabling them to make better informed investment decisions. We expect to make loan-level disclosure available to the market by the fourth quarter of 2013.

Ginnie Mae’s modernization approach is not simply a collection of technology-focused projects, but rather an integrated portfolio of strategic priorities and investments. We value any feedback you may have and encourage you to contact us if you have any questions regarding this high-priority effort.

Ginnie Mae remains steadfast in providing our stakeholders with a sustainable, scalable platform that provides stability to the U.S. housing finance system. More than ever, Ginnie Mae is focused on providing user-friendly applications, quality data and efficient processes so that all key stakeholders can easily navigate our business processes. The improvements and enhancements we are making today will leave Ginnie Mae equipped with an advanced securitization platform that will more effectively meet the needs of our Issuers and investors.

Terry Carr
Senior Advisor, Communications and Congressional Relations