|9/21/2020 - APM 20-12|
In July 2017, the United Kingdom’s Financial Conduct Authority (FCA) announced that it would cease requiring the submission of quotes supporting the London Interbank Offered Rate (LIBOR) by December 31, 2021. As a result, it is unclear whether LIBOR will continue to be published after that date. Ginnie Mae has worked closely with key stakeholders, including other federal agencies, to identify and implement a course of action that transitions the Ginnie Mae program away from LIBOR while minimizing disruption to the MBS Program and its participants. To that end, Ginnie Mae is announcing restrictions to the pooling eligibility of LIBOR-based adjustable rate loans as detailed below.
Restrictions on LIBOR-Based Single-Family Forward Adjustable Rate Mortgages (ARM)
Effective with security issuances dated on or after January 1, 2021, Ginnie Mae will stop accepting the delivery of loans for securitization into any pool type comprised of loans with any interest term based on LIBOR, including pool types “C RL”, “C TL”, “C FL”, “C FB”, “C SL”, “C XL”, “M RL”, “M QL”, “M TL”, “M FL”, “M FB”, “M SL”, and “M XL”. Consequently, all single-family forward ARM loans that rely on LIBOR, including LIBOR-based ARM-to-ARM loan modifications and re-performing LIBOR-based ARMs, will become ineligible for pooling into any Ginnie Mae I or Ginnie Mae II security as of the effective date.
Restrictions on LIBOR-Based Adjustable Rate Reverse Mortgages [HECM/HMBS]
Effective with HMBS issuances dated on or after January 1, 2021, Ginnie Mae will restrict the eligibility of adjustable rate Home Equity Conversion Mortgage loans for securitization into any HMBS pool type that relies on LIBOR, including pool types “C AL” and “C ML”. LIBOR-Based adjustable rate HECM loans that are not securitized as of January 1, 2021, will be ineligible for pooling without regard to their date of origination or the date in which the corresponding FHA case number was assigned. Participations associated with a HECM loan that is backing HMBS with an issuance date on or before December 1, 2020, will continue to be eligible for securitization without restriction until further notice.
Chapter 26 and Chapter 35 of the MBS Guide, 5500.3, Rev-1, have been amended in accordance with this memorandum.
Forward and reverse adjustable rate mortgage loans that rely on the Constant Maturity Treasury (CMT) index continue to be eligible without restriction.
Ginnie Mae is ready to facilitate the creation of Single-Class MBS collateralized by pools containing Secured Overnight Financing Rate (SOFR) ARM and HECM loans when those loans become authorized by the insuring agencies.
Please contact your Ginnie Mae Account Executive in the Office of Issuer and Portfolio Management directly or at (202) 708-1535 with any questions you may have.
|7/29/2020 - APM 20-11|
Ginnie Mae continues to modernize its Securitization Platform technology, processes, and related policies to provide increased transparency and improved service delivery to its Issuers. To support this goal, in January 2020, Ginnie Mae launched the MyGinnieMae (MGM) portal, a comprehensive platform that integrates functional and technological capabilities into a common infrastructure.
The MGM portal provides enhanced security and a single entry point to all approved applications for individual users, as well as a seamless user registration and access request process, for both the user and the approving authority. With the adoption of MGM, one account and one single username and password will provide users access to all systems, applications and Organization IDs/Issuer IDs. MGM houses existing Ginnie Mae legacy systems (i.e. GMEP 1.0, GinnieNET), modernized portal applications (i.e. MFPDM, AMC), and resources that boost efficiency for our business partners.
Requisite MGM Roles and Responsibilities
Organization Administrators (formerly known as Security Officers and Enrollment Administrators). Organization Administrators (OAs) have the system authority to invite end users to register for an MGM account, approve user registration, initiate access request via functional role assignment to user, and approve the access request within their organizations. To register for access to the Ginnie Mae Systems, including the MGM and systems and applications contained therein, multiple OAs will be required to complete the registration and access workflows for onboarding users into MGM. Each OA for any Ginnie Mae Issuer must be listed as an authorized signatory in the organization’s form HUD-11702. OAs for Document Custodians are not subject to the HUD-11702 requirement. However, please note that Document Custodians should only assign individuals who are officers or have managerial and oversight responsibility for custodial operations as OAs. For details regarding the new OA adding process, please see revised Appendix III-29 that is attached to this APM.
Please note that separation of duties guidelines within the registration and access request workflows prohibit the same OAs from initiating a registration and approving that same registration and from initiating request access via functional role assignment and approving such requests. For each Issuer, Ginnie Mae requires a minimum of three OAs, but we strongly encourage you to have more than the minimum as a safeguard against operational challenges.
End Users. End Users include Ginnie Mae employees, business partners, program participants and contractors who will require access to the business applications and information within the Portal, including various self-service functions. A full list of the functional roles available to external end users may be found here.
New Requirements for Users of Ginnie Mae Systems
Effective September 1, 2020, all Issuers must meet the following two requirements.
- Each organization must have a minimum of three OAs with active MGM credentials.
- Users of all Ginnie Mae Systems, including the Ginnie Mae Enterprise Portal and GinnieNET, are required to have active credentials to access MGM in order to be able to transact on Ginnie Mae Systems.
Effective December 1, 2020, MGM will become the sole avenue to access all Ginnie Mae systems. After December 1, 2020, Issuers will no longer be able to access GinnieNET or GMEP directly through their Uniform Resource Locator (URL) web address.
For more information and resources, please visit the Modernization Page on the Ginnie Mae website.
For general questions about the MGM portal or its release activities, please contact CXG@hud.gov or your Account Executive in the Office of Issuer and Portfolio Management directly.
|7/16/2020 - APM 20-10|
In June 2018, Ginnie Mae announced it would start developing and implementing the policy, technology, and operational capabilities necessary to accept electronic promissory notes and other digitized loan files as collateral for Ginnie Mae securities (Digital Collateral). To that end, Ginnie Mae collaborated extensively with industry stakeholders in developing the policies and processes governing the securitization of Digital Collateral in the government-backed industry segment. Ginnie Mae also recognizes that allowing Digital Collateral for its MBS is necessary more than ever as a key strategic initiative that is responsive to the impacts of the COVID-19 pandemic. Today, Ginnie Mae is announcing the launch of the initial phase of its Digital Collateral Program.
As part of this initial phase, Issuers may apply to participate as eIssuers and begin securitizing government-backed mortgages comprised of Digital Collateral with Ginnie Mae approval. The requirements and processes that govern participation in the Digital Collateral Program are detailed in the Digital Collateral Program Guide (eGuide), Appendix V-07 of the MBS Guide. Ginnie Mae will work closely with approved eIssuers to identify MBS Program updates that may be needed to achieve greater industry adoption of eMortgages and instruct subsequent phases of its Digital Collateral Program.
Please note that all Issuers seeking approval, will need to have an established relationship, evidenced by a duly executed Form HUD-11715 Master Custodial Agreement, with a Document Custodian that is also approved by Ginnie Mae to serve as an eCustodian. Both the eIssuer Application to Participate in the Digital Collateral Program and the eCustodian Application to Participate in the Digital Collateral Program have been published as Appendix V-08 and Appendix V-09 of the MBS Guide, respectively. Interested Issuers and Document Custodians may submit their applications individually or jointly. All applications to participate in this phase of the Digital Collateral Program must be submitted to Ginnie Mae via email at DCPA@hud.gov no later than August 15, 2020.
Ginnie Mae will begin reviewing applications on a rolling basis beginning on July 20, 2020. If approved, eIssuers and their eCustodian will need to complete a series of test eNote transactions with Ginnie Mae. Upon successful completion of the test transactions, Ginnie Mae will grant in writing eMortgage Issuance Authority, which will govern and limit the number of eMortgages (regardless of the principal balance associated with each loan) that may be securitized by that eIssuer during the initial phase of the Digital Collateral Program. Please note that there will not be costs or fees associated with the provision of eMortgage Issuance Authority.
The Digital Collateral Program Guide, Appendix V-07, the eIssuer Application to Participate in the Digital Collateral Program, Appendix V-08, and the eCustodian Application to Participate in the Digital Collateral Program, Appendix V-09 of the MBS Guide have been published and are effective immediately. Please submit any questions or concerns you may have about this announcement to DCPA@hud.gov.
|7/2/2020 - APM 20-08|
On February 12, 2020, the Mortgage Bankers’ Financial Reporting Form (MBFRF) Consortium published an industry-wide letter announcing a certification requirement for each submission of unaudited quarterly financial statements effective with the reporting period ending September 30, 2020 (due October 31, 2020). To ensure industry alignment as well as the completeness and accuracy of the information shared through the MBFRF, Ginnie Mae is hereby incorporating this certification requirement into its Mortgage-Backed Securities Guide (MBS Guide).
Chapter 3, Part 7, Section B of the MBS Guide requires all non-supervised Issuers to submit unaudited quarterly financial statements via the web-based MBFRF (Form HUD-11750). Effective with the quarterly reporting period due on October 31, 2020, all Ginnie Mae Issuers subject to the MBFRF reporting requirement will need to certify the accuracy of the MBFRF data as follows.
For each quarterly MBFRF submission, the Issuer’s chief executive officer, chief financial officer or equivalent will need to complete a new certification step as part of the electronic submission process whereby the officer will attest that:
“By selecting this checkbox, I, the undersigned, certify that I am the CEO, CFO or equivalent and that the information contained herein is true and accurate to the best of my knowledge and belief, and that the unaudited financial statements were prepared in accordance with GAAP.”
The officer completing the certification for any Ginnie Mae Issuer must also be listed on the Issuer’s Form HUD 11702, Resolution of Board of Directors and Certificate of Authorized Signatures that is in effect as of the date of the certification. Additional instructions detailing the new certification process will be made available at www.mbfrf.org.
Chapter 3, Part 7, Section B of the MBS Guide is amended effective immediately in accordance with this memorandum. If you have any questions, please contact your Ginnie Mae Account Executive, the MBFRF Help Desk at 888-833-8689, option 1, or firstname.lastname@example.org.
|7/2/2020 - APM 20-09|
In order to ensure the continued integrity of the MBS program, Ginnie Mae is changing the methodology used to determine the extent to which non-depository financial institutions may rely on Preferred Equity to meet program capital requirements.
Currently, the Mortgage-Backed Securities Guide, Handbook 5500.3 (MBS Guide) provides Ginnie Mae with discretion to define Issuer liquidity and capital requirements and to determine which assets Issuers may use to meet these financial standards. For example, Chapter 2, Part 9, § B(2)(b) of the MBS Guide provides that credit unions and non-depository financial institutions must have a ratio of Total Adjusted Net Worth (as defined by Ginnie Mae) to Total Assets of 6% or greater in order to meet institution-wide capital requirements for participation in the MBS program. Chapter 3, Part 8, §§ A(3)(b), B(3)(b), C(3)(b), and D(3)(b) reiterate these capital requirements for approved Single-family, Multifamily, HECM and Manufactured Home MBS Issuers.
Ginnie Mae is hereby announcing factors that will be assessed in determining whether an Issuer’s preferred equity is to be included or excluded in the Issuer’s financial statements, in whole or in part, for purposes of the Total Adjusted Net Worth computation. These factors include, but are not limited to, the Issuer’s ability to defer or suspend dividend payments to preferred equity holders, whether the preferred equity is cumulative or non-cumulative, the seniority and maturity of the preferred equity at issue, and the Issuer’s ability to convert preferred equity to common equity.
Chapter 2, Part 9, § B(2)(b) and § D, and Chapter 3, Part 8, § A(3)(b), § B(3)(b), § C(3)(b), and § D(3)(b) have been amended in accordance with this memorandum. If you have any questions, please contact your account executive directly or by calling (202) 708-1535.
|6/29/2020 - APM 20-07|
In supporting the borrower relief and loss mitigation options made available by the federal mortgage programs, Ginnie Mae seeks to ensure that transactional activity related to these options does not impair market confidence in Ginnie Mae securities. Two borrower relief options, FHA’s National Emergency Standalone Partial Claim and USDA’s Mortgage Recovery Advance, do not require that loans be bought out of pools in cases where the terms of the loan will not need to be modified. To ensure that loan buyout activity is aligned with borrower and MBS program interests, Ginnie Mae is implementing the pooling eligibility restrictions detailed below while continuing to provide for buyout transactions that are appropriate and necessary.
Chapter 18 is incorporating three new terms, “Re-performing Loan”, “Timely Payment”, and “Delinquent” to define the new pooling eligibility requirements and to ensure that the same are not more restrictive than necessary. The term “Re-performing Loan” means a mortgage loan that is not more than 30 days Delinquent, that was previously bought out from a pool or loan package backing a Ginnie Mae MBS, and that retains the same rate and terms as the rate and terms associated with such loan on the date the loan was previously securitized in a Ginnie Mae MBS. The term “Delinquent” means a mortgage loan with a full monthly payment that is due but unpaid regardless of reason, including loans in forbearance that are not treated as delinquent for other credit or servicing purposes. The term “Timely Payment” means a full monthly mortgage payment made by a borrower no more than 30 calendar days from its scheduled due date.
New Pooling Eligibility Requirements for Certain Re-performing Loans
Effective immediately, any Re-performing Loan that entered into forbearance, of any type, regardless of duration, on or after March 1, 2020, and is bought out on or after July 1, 2020, as reflected in the Issuer’s servicing system of record, is ineligible collateral for Ginnie Mae securities backed by any existing pool types. Re-performing Loans will be eligible collateral for securities backed by C RG pools, a new pool type being deployed by Ginnie Mae to securitize the Re-performing Loans affected by this memorandum but only if:
(1) the borrower has made Timely Payments for the six (6) months immediately preceding the issuance month associated with the MBS, and
(2) the Issue Date of the MBS is at least 210 days from the last date the loan was Delinquent.
Ginnie Mae will issue a subsequent All Participants Memorandum announcing updates to these temporary restrictions. Please note that these temporary restrictions apply only to Re-performing Loans, and not to Modified Loans. “Modified Loans” which are mortgage loans that have undergone a rate and/or term modification pursuant to a duly executed loan modification agreement, may continue to be repooled without restriction, assuming they meet all other MBS Guide and Guaranty Agreement requirements.
Chapter 24 Part 2 § A (2) and Chapter 18 Part 3 § B (5) of the MBS Guide have been amended in accordance with this memorandum. If you have further questions, please contact your Account Representative in the Office of Issuer and Portfolio Management directly.
|5/14/2020 - APM 20-06|
In response to the National Emergency declared by the President on March 13, 2020, in connection with COVID-19, Ginnie Mae is hereby providing Issuers temporary relief from the acceptable delinquency rate threshold requirement identified in Ch. 18, Part 3, § C of the Mortgage-Backed Securities (MBS) Guide as follows.
In the MBS Program, pooled mortgages for which no scheduled monthly payments were received due to forbearance are reported as delinquent within the context of MBS investor reporting guidelines. Under Chapter (Ch.) 18, Part 3, § D of the MBS Guide, any Issuer that fails to maintain delinquency rates below the applicable threshold levels described in the MBS Guide, Ch. 18, Part 3, § C, may be subjected to Ginnie Mae sanctions. Under the Coronavirus Aid, Relief, and Economic Security Act, as implemented by the federal agencies providing the mortgage insurance or guaranty, Issuers are required to extend forbearance to borrowers experiencing a COVID-19-related hardship. Ginnie Mae acknowledges that these requirements will cause a significant number of Ginnie Mae Issuers to experience increasing delinquency rates that may exceed the maximum thresholds established by Ginnie Mae.
Effective immediately and subject to the limitations delineated below, Ginnie Mae will exclude any new Issuer delinquencies, occurring on or after April 2020 (reported in the May 2020 investor accounting report or after), when calculating the delinquency ratios for the purposes of enforcing the provisions in Ch. 18, Part 3, §§ C & D. This exclusion will be extended automatically to Issuers that were compliant with Ginnie Mae’s delinquency rate thresholds as reflected by their April 2020 investor accounting report, reflecting March 2020 servicing data. Ginnie Mae reserves the right to withdraw this permission, in its sole discretion, at any time upon notification to the affected Issuer. Issuers that were not compliant with these provisions as of their April 2020 report will need to contact their Account Executive to determine their eligibility for the exclusion announced in this memorandum. Issuers should note that the computation of delinquency ratios in Ginnie Mae’s Reporting and Feedback System (RFS) and in Issuer Operational Performance Profile (IOPP) will remain the same, but Ginnie Mae’s monitoring and enforcement of the resulting delinquency metrics is being modified temporarily in accordance with this memorandum.
The exemptions and delinquent loan exclusions implemented by this memorandum will automatically expire on December 31, 2020 (November 2020 investor reporting) unless rescinded earlier or extended by Ginnie Mae, or the end of the National Emergency, whichever comes earlier.
|5/4/2020 - APM 20-05|
On April 10, 2020, Ginnie Mae published “APM 20-03: Availability of Pass-Through Assistance Program for Participants in Ginnie Mae’s Single-Family MBS Program” in response to the National Emergency declared by the President on March 13, 2020, in connection with COVID-19 (“PTAP/C19”).
This All Participants Memorandum (“APM”) announces PTAP/C19 assistance for Issuers under the Multifamily MBS program, effective immediately upon publication. As previously noted, the purpose of PTAP/C19 is to honor the statutory duty Ginnie Mae has to pay timely and in full principal and interest payments due Mortgage-Backed Security (“MBS”) holders while minimizing any disruptions that may occur in the mortgage servicing market as a result of COVID-19. Assistance rendered under PTAP/C19, as provided for below and in Chapter 34, is to be considered an extraordinary measure, for use when other resources have been exhausted and with the requirement of full repayment by the Issuer.
Multifamily Issuers may request PTAP/C19 assistance only once per month to cover shortfalls on the principal and interest (P&I) due MBS holders for the month the request is made. For example, PTAP/C19 requests submitted in May 2020 must relate to the funding needed for the May 2020 MBS investor remittance. PTAP/C19 funds may be used only to cover shortfalls in the P&I owed to MBS security holders associated with loans that are in forbearance as of the date that each request for assistance is submitted. PTAP/C19 funding may not be used to cover other Issuer operational or servicing costs.
To request and accept PTAP/C19 funding, Multifamily Issuers, similar to Single Family Issuers, will need to execute and submit a Request For Pass-Through Assistance Related To COVID-19 And Repayment Agreement (“Request and Repayment Agreement”) as well as a Master Supervisory Agreement (“MSA”). The Request and Repayment Agreement and the MSA applicable to the Multifamily Program have been published as Appendix XI-01B and Appendix XI-02B of the MBS Guide, and are effective immediately. Other requirements governing the request, acceptance, and provision of PTAP/C19 assistance, including document submission requirements, have been incorporated into Chapter 34, Part 2, Section F of the MBS Guide.
|4/15/2020 - APM 20-04|
In an effort to streamline the process through which Issuers apply for SCRA Interest Short Fall Assistance, as detailed in Chapter 34 of the Mortgage-Backed Securities Guide, Ginnie Mae is implementing the following changes.
Currently, Ginnie Mae requires Issuers applying for SCRA Interest Short Fall Assistance to submit the SCRA Loan Eligibility Information in Appendix XI-06 and the SCRA Quarterly Reimbursement Request in Appendix XI-08 in both hard copy and electronic form. Effective immediately, Ginnie Mae is eliminating the requirement to submit hard copies. All Eligibility Request Forms, Reimbursement Request forms, and supporting documentation must be submitted in PDF format using the file upload function available in the Ginnie Mae Enterprise Portal (GMEP). When uploading SCRA documentation, Issuers must use the radio button labeled “Service Members Civil Relief Act Files”. Please see the screen shot enclosed below as Attachment A.
Chapter 34, Part 3, Sections A and E, Appendix XI-06, and Appendix XI-08 of the Ginnie Mae Mortgage-Backed Securities Guide have been amended in accordance with this memorandum.
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.
Attachment A: Screenshot of GMEP File Upload Page
|4/10/2020 - APM 20-03|
In response to the National Emergency declared by the President on March 13, 2020, in connection with COVID-19, Ginnie Mae has revised and expanded the Issuer assistance programs in Chapter 34 of the Mortgage Backed Securities Guide (“MBS Guide”), including the Pass-Through Assistance Program (“PTAP”). These revisions and expansions are contained in Chapter 34, Part 2, Section E, which explains the terms and conditions applicable to the PTAP that is specifically authorized for use in response to the COVID-19 National Emergency (“PTAP/C19)”.
This All Participants Memorandum (“APM”) announces PTAP/C19 assistance for Issuers under the Single-Family program, effective immediately upon publication. The purpose of PTAP/C19 is to honor the statutory duty Ginnie Mae has to pay timely and in full principal and interest payments due Mortgage-Backed Security (MBS) holders while minimizing any disruptions that may occur in the mortgage servicing market as a result of COVID-19. PTAP/C19 will also support Issuers in their administration of borrower relief measures, such as extended forbearance and moratoriums on foreclosures and evictions, announced by the federal agencies providing the mortgage insurance or guaranty. Assistance rendered under PTAP/C19, as provided for below and in Chapter 34, is to be considered an extraordinary measure, for use when other resources have been exhausted and with the requirement of full repayment by the Issuer.
Extension of assistance under PTAP/C19 will be made through a Request for Pass-Through Assistance Related to COVID-19 and Repayment Agreement (“Request and Repayment Agreement”), and subject to a Master Supervisory Agreement which will govern the terms of any PTAP/C19 assistance. Assistance advanced by Ginnie Mae will bear a fixed rate of interest. The rate that will apply to a given month’s pass-through assistance to all Issuers will be posted on Ginnie Mae’s website on the second business day of each month. Neither a request for assistance, nor the actual provision of assistance, under this program will, in and of itself, constitute a basis for default under the Ginnie Mae Guaranty Agreement, but any breach of the Master Supervisory Agreement or related Request and Repayment Agreements will constitute an event of default under the Master Supervisory Agreement and related Request and Repayment Agreements, the MBS Guide and the Guaranty Agreement.
Third-party financiers of Ginnie Mae principal and interest (P&I) servicing advances should note that, as stated in the Master Supervisory Agreement, in the event of Issuer default repayment of third-party financed servicing advances is subordinate to repayment of Ginnie Mae under the Master Supervisory Agreement Requirements for Requesting PTAP/C19 Assistance.
Issuers may request PTAP/C19 assistance only once per month to cover shortfalls on the P&I due mortgage-backed security (MBS) holders for the month the request is made. For example, PTAP/C19 requests submitted in May 2020 must relate to the funding needed for the May 2020 MBS investor remittances. PTAP/C19 funds may be used only to cover shortfalls in the P&I owed to MBS security holders associated with loans that are delinquent, which includes loans in forbearance, as of the date that each request for assistance is submitted. PTAP/C19 funding may not be used to cover other Issuer operational or servicing costs.
The specific requirements governing the request, acceptance, and provision of PTAP/C19 assistance, including document submission requirements, have been incorporated into Chapter 34, Part 2, Section E, of the MBS Guide, Appendix XI-01A, and Appendix XI-02A, and are effective immediately. Notwithstanding the PTAP/C19 documentation deadlines in Chapter 34, Ginnie Mae will allow Issuers seeking PTAP/C19 assistance for the Ginnie Mae II investor remittance due on April 20, 2020, to submit a request by 11:59 pm eastern standard time on April 13, 2020. If you have any questions regarding this announcement, please contact your Account Executive in the Office of Issuer and Portfolio Management directly.
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