In order to address concerns and minimize potential market disruptions related to COVID-19, Ginnie Mae is undertaking a temporary measure allowing for the electronic execution and transmission of form HUD 11711A (Release of Security Interest) and form HUD-11711B (Certification and Agreement).
The Document Custody Manual (DCM) Appendix III-05 of Ginnie Mae’s MBS Guide 5500.3, Rev. 1 stipulates that the original form HUD 11711A must include the wet signature and title of individual signing on behalf of interim lender to meet Initial Certification requirements. The DCM also requires the form HUD 11711B to include the wet signature of an officer of the Issuer authorized under the Resolution of Board of Directors and Certificate of Authorized Signatures, form HUD 11702.
As a temporary measure and effective immediately, Ginnie Mae will approve interim lenders and Issuers to execute the forms HUD 11711A and HUD 11711B using an electronic signature. The electronic signature must, in all cases, be performed, affixed or reflected as to allow a person reading the form to identify the name, title, and business name of the signor. The electronic signature may not be an audio recording, a video recording, or comprised exclusively of biometric data.
Any forms HUD 11711A and HUD 11711B signed electronically may also be transmitted electronically between interim lenders, Issuers, and Document Custodians provided that they are maintained in PDF format and that the Document Custodian is able to reproduce a print out of those PDF files to be included in the relevant physical pool file or upon Ginnie Mae’s request. Issuers must ensure that the Document Custodian is able to receive and reproduce the electronic forms before transmitting them for the Initial Certification review
Once the crisis related to COVID-19 has been mitigated, or as otherwise directed by Ginnie Mae, the Issuer will be responsible for delivering forms HUD 11711A and HUD 11711B bearing wet signatures to the Document Custodian for the completion of Final Certification. Ginnie Mae reserves the right to follow up with Issuers in order to ensure this requirement is met. If you have any questions, please contact your Ginnie Mae account executive.