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All ​Participant Memorandums (APMs)

APMs (All Participant Memoranda) are issued by IPM generally to announce policy and MBS Guide changes accessed by Issuers, Document Custodians and other participants in Ginnie Mae programs.

5 most recent APMS
5/23/2022 - APM 22-04

In 2020, Ginnie Mae published its Digital Collateral Program Guide (eGuide), Appendix V-07 of the MBS Guide, via APM 20-10, announcing the launch of the pilot phase of its Digital Collateral Program, which permits approved Issuers to securitize loans containing electronic promissory notes (eNotes) and other digitized loan documents. Since then, Ginnie Mae has continued to assess and develop its Digital Collateral Program, to provide our eIssuers with an updated and enhanced eGuide. While some of the key features of the new eGuide are highlighted below, please read the revised eGuide for full program guidance. The changes are effective beginning June 1st, 2022.

Revised requirement for Remote Online Notarization recording storage

The length of time an eIssuer is required to either maintain the recording of a notarial ceremony or maintain the ability to access and reproduce the recording of a notarial ceremony has been revised from the life of the loan to the greater of 10 years or the minimum period required by applicable law. Please see “Notarization Requirements” (3250.00) in the eGuide,

Revised procedures related to MERS® eRegistry addition of the Transfer of Control and Location with Secured Party transaction

Ginnie Mae will permit the use of the Transfer of Control and Location with Secured Party transaction by a warehouse lender at the direction of an eIssuer to add Ginnie Mae as Secured Party on an eNote. Please see “General Requirements for Delivery of eNotes” (4400.00) in the eGuide.

Revised requirements and procedures for the release of documents, including the release of Secured Party, due to a loan buyout from a pool

The eGuide is updated to include procedures for the eCustodian to notify Ginnie Mae after it has duly executed a Form HUD 11708 with certain reason codes. For buyout types related to payment in full, completion of a foreclosure, satisfaction through hazard or flood insurance, eminent domain, or condemnation, Ginnie Mae does not need to release its Secured Party designation prior to the eIssuer deactivating the eNote on the eRegistry.

The eGuide is also updated to include details on the information necessary for requests to remove or reverse Secured Party. Please see “Release of eDocs and Loan Files Received in Hard Copy” (5610.00), “Transfers of Location of Authoritative Copy of eNote” (5620.00), “Removal of Ginnie Mae from the Secured Party Field Due to Loan Liquidations” (6210.01), “Issuer Responsibility for MERS® eRegistry Transaction After a Buyout” (6240.00), and “Format for Requests to Remove or Reverse Ginnie Mae from the Secured Party Field” (6210.03) in the eGuide.

Updates to extend the changes announced in APM 21-07 (eSignatures and Remote Online Notarization on Loan Modification Agreements) to eNotes

As announced in APM 21-07, Ginnie Mae permits the use of electronic signatures and electronic notarization, including Remote Online Notarization (RON), when executing Loan Modification Agreements to “paper” notes. The eGuide has been updated to allow eModifications to eNotes. The “Prohibition on Electronic Loan Modifications” (5720.00) and “Prohibition on Electronic Loan Modifications” (6220.04) sections of the eGuide have been removed. Please see “Electronically Signed Modification Agreements” (4640.00), “Electronically Recorded Security Instruments and Modification Agreements” (5210.00), “Required Documents” (5420.00), “Required Documents” (5530.00), “Document Review Procedures for Recertification” (5540.00), ”Loan Modification Agreements” (5710.00), “eMortgage Loan Modifications Subject to a Trial Payment Period” (6220.01), “eMortgage Loan Modifications occurring without a Trial Payment Plan” (6220.02), and “Securitization of eMortgage Loan Modifications” (6220.02) in the eGuide.

Added procedures for refinancing an original loan containing an eNote using a New York Consolidation Extension and Modification Agreement (NY CEMA)

The eGuide is updated to include procedures for an eIssuer to use when an eNote is being bought out because it is being consolidated into a NY CEMA. These changes do not allow for the origination of a NY CEMA as an eNote. Please see “New York Consolidation Extension and Modification Agreement (NY CEMA)” (6260.00) in the eGuide.

Added requirements and procedures for eNotes executed using a Power of Attorney

The eGuide is updated to include policy and procedures for the acceptance of eNotes executed using a Power of Attorney. Please see “Other Exclusions” (3240.00), “Delivery Requirements for eNotes Executed by an Attorney-in-Fact” (4410.00), “General Requirements for the Receipt and Storage of eNotes” (5100.00), and “Required Documents” (5310.00) in the eGuide.

Added procedures for making minor corrections to eNotes

The eGuide is updated to include procedures for corrections to eNotes, with Ginnie Mae approval, where a minor, clerical error is detected after the eNote is executed and registered on the eRegistry. Please see “Defects related to eNote” (5820.00) in the eGuide.

Other Changes

  • ​Updates to prohibit eCustodians from using an eIssuer’s eVault. Please see “eVaults by Third Parties” (2640.00), “General Requirements for the Receipt and storage of eNotes” (5100), eNote (5330.03), and “Transfer of Issuer Responsibility that also Require a Transfer of Custodial Responsibility” (6440.00) in the eGuide.
  • Included Reversal transactions of Loan Modifications, Assumptions, and Deactivations as required eServicing functions. Please see “eServicing Requirements” (2170.00) in the eGuide,
  • Revised procedures for reviewing the MERS® eRegistry Master Servicer and Subservicer fields. Please see “eNote” (5330.03) in the eGuide.
  • Removed the requirement that eIssuer makes available a certified printed copy of the original eNote to the Document Custodian when delivering an eNote with a loan modification agreement. Please see “Securitization of eMortgage Loan Modifications” (6220.03) in the eGuide.
  • Included the requirement that an eCustodian notify Ginnie Mae and the eIssuer in the event of identified system deficiencies. Please see “Required Notifications Related to System Deficiencies” (7100.00) in the eGuide.

The changes listed above are not an exhaustive list and should not be relied on for compliance. Issuers should read the full eGuide to ensure they comply with the updated requirements. If you have further questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly.

5/17/2022 - APM 22-03
Ginnie Mae has monitored the loss mitigation policy changes in response to the COVID-19 pandemic that have been implemented by the Federal Housing Administration (FHA), Veterans Administration (VA) and US Department of Agriculture Rural Development (RD) (collectively, “the Agencies”). This memorandum seeks to ensure clarity in how the requirements of the Mortgage-backed Securities (MBS) Guide and other program documents apply to these new Agency standards with respect to delinquent loan buyouts.  Each of the Agencies has confirmed with Ginnie Mae staff that their respective program policy should not be interpreted as requiring loan modifications that conflict with the terms of Ginnie Mae MBS program, which state that loans may not be bought out of a pool until three consecutive payments have been missed or the borrower has completed a Trial Payment Plan (TPP) prior to a modification.

This APM reiterates that the longstanding requirements of the MBS Guide, Guaranty Agreement, and prospectus must be complied with, and, as a reminder, provides additional background and context about the treatment of loan modifications under the Ginnie Mae Mortgage-Backed Securities (MBS) program.  Ginnie Mae’s requirements are not simply program policy but are representations by the Issuer to the Investor through the prospectus and are subject to various securities and tax laws.  Ginnie Mae MBS are structured as Grantor Trusts that have limited power to vary the assets of the trust, save for the few circumstances provided for in the prospectus.  Most of Ginnie Mae MBS are further securitized into Real Estate Mortgage Investment Conduit (REMIC) securities, which have similarly limited ability to vary assets.  These structural elements are essential to the MBS program’s ability to provide liquidity to the federal housing programs.

Delinquent Loan Buyout Eligibility

As a reminder, Ginnie Mae’s buyout requirement, as defined in the Mortgage Backed Securities Guide (MBS Guide) Chapter 18, Part 3, §B(1), states that loans may not be bought out until three consecutive payments have been missed, or the borrower has completed a Trial Payment Plan  prior to a modification.   This requirement is one of an Issuer’s rights and obligations established in the Guaranty Agreement executed with Ginnie Mae and in the prospectus, which establishes the terms under which the securities are issued, including the requirements for servicing the underlying mortgages. Both of these documents require that a loan must come into default and remain in default for more than 90 consecutive days to be eligible to be bought out of the pool. 

Prohibition against modifying loans while in Ginnie Mae MBS

MBS Guide Chapter 18, Part 2, §B(4) prohibits Issuers from modifying the terms of loans in Ginnie Mae MBS that affect the amount and duration of payments.  The Guaranty Agreement and prospectus require the Issuer to pass through the interest and principal, as scheduled, plus any unscheduled payments.  The “scheduled/scheduled” nature of the securities does not allow for changes to loan terms that would affect the amount of interest and principal to be passed through to the Investors.  Modifying a loan, which alters the amount and duration of payments, in addition to other loan terms does not comply with the representations made in the prospectus and Guaranty Agreement.  Therefore, loans must be bought out of pools prior to modification.

The requirements of the prospectus are echoed in Chapters 9 and 24 of the MBS Guide, and the express prohibition of modifying loans while pooled is at Chapter 18, Part 3 §B(4).

​Exception for Loan Subject to a Trial Payment Plan 

As mentioned, loans that are subject to a Trial Payment Plan (TPP) under the guidance of the Agencies, that complete the TPP, and are in a continuous period of default for 90 days or more are eligible for buyout.  This provision was implemented to facilitate loss mitigation assistance to borrowers at a time when TPPs were required.  Consistent with its original intent, loans that complete TPPs that are consistent with the MBS Guide, Chapter 18, Part 3 §B, and Agency guidance may be bought out at the end of the TPP period.

Ginnie Mae monitors its Issuer participants and portfolios for compliance with its requirements.  Non-compliance with these requirements may result in enforcement action up to and including Issuer default, as provided in the Guaranty Agreement.  If you have any questions about this APM, please contact your Account Executive in the Office of Issuer and Portfolio Management. 

1/31/2022 - APM 22-02

Ginnie Mae is transitioning from Single Family and Manufactured Housing Program pooling in GinnieNET to the new Single Family Pool Delivery Module (SFPDM) in MyGinnieMae. This modernized application will give the Single Family and Manufactured Housing Program Issuer community several new capabilities, including more insight into the progress of pool submissions through an intuitive and user-friendly interface to enhance the user experience. SFPDM has been built to leverage the MISMO-compliant (v3.3) Pool Delivery Dataset (PDD) for the delivery of Single Family issuance data and to align with mortgage industry standards. The latest PDD specifications can be found on GinnieMae.gov under the “Modernization Initiatives” page under the “SFPDM-MISMO” dropdown.

To remain compliant in Ginnie Mae’s Single Family and Manufactured Housing Programs, Issuers must transition to SFPDM over an 18-month Adoption Period, ending approximately in July 2023. Issuers will be required to deliver pools to SFPDM using the MISMO-compliant PDD or by manually entering pool and loan data. Ginnie Mae has a dedicated team of data and technical experts ready to help Issuers and associated software vendors transition to the new MISMO-compliant PDD and SFPDM. Training sessions and materials will be held throughout the 18-month Adoption Period to help users onboard and use SFPDM.

Initiating 18-Month Transition Period to the PDD and SFPDM

Ginnie Mae has outlined an 18-month Adoption Period that initiates with the publication of this APM. Issuers are currently expected to begin planning, developing, and testing a PDD in the Validation and Testing Tool (VTT) presently available in the MyGinnieMae portal. In the coming months, a separate communication will be provided to Issuers once SFPDM is available. Once the Issuers transition to SFPDM and start using it to submit pools, Ginnie Mae expects that the Issuers will use the new SFPDM application exclusively, without reverting back to GinnieNET. However, GinnieNET will remain available to Issuers during the Adoption Period as a backup option to ensure smooth business operations as they transition at their own pace.

At the end of the 18-month Adoption Period, GinnieNET will no longer be used for Single Family and Manufactured Housing Program pooling and only SFPDM will be available to Issuers. Only Issuers in Ginnie Mae’s Single Family and Manufactured Housing Programs will be impacted by this transition. A subsequent APM, along with corresponding MBS Guide Changes, will announce the end of the transition from GinnieNET. Ginnie Mae’s SFPDM and PDD Adoption Timeline can be found in Modernization Bulletin #10.

Ginnie Mae understands that this is a large and complex transition that affects multiple business processes within Issuer organizations. Many Issuers have already started working on PDD development, and we encourage each Issuer to begin working with their IT teams and software vendors on the impacts to loan origination and investor reporting workflows. The information your organization needs to plan for this transition can be found in the PDD Implementation Guide, its associated Appendices, and related Frequently Asked Questions. Additional information can be found on the Modernization Initiatives webpage under the “SFPDM-MISMO” dropdown.

Please note that Reperforming Loan (RG) and Extended Term (ET) Pool Types are not currently supported by SFPDM and must continue to be submitted through GinnieNET at this time. Ginnie Mae intends to make these pool types available in SFPDM prior to the end of the transition from GinnieNET. More information on these pools and other upcoming SFPDM enhancements will be available in the coming months.

Changes to Pool Attestation Workflow

As Issuers transition to pooling in SFPDM, the Attestation process will remain in GinnieNET. Ginnie Mae has enhanced the Attestation Workflow so that Issuers must view and attest to each HUD-11705 and HUD-11706 Form per pool. During the 18-month Adoption Period, either GinnieNET or SFPDM-generated HUD-11705 and HUD-11706 Forms will be considered the documents of record. Additional communications and training will be conducted on the enhanced workflow as the SFPDM Rollout approaches.

Other Important Information

  • Document Custodians will continue to perform their activities in GinnieNET.
  • HECM Issuers will continue pooling in GinnieNET.
  • Pools Issued for Immediate Transfers
    • ​PIIT execution will be available in both GinnieNET and SFPDM during t​​he 18- month Adoption Period
    • ​The buying and selling of PIITs need to occur in the same application (i.e., SFPDM to SFPDM or GinnieNET to GinnieNET)
    • ​Issuers that plan to transfer pools during the 18-month Adoption Period should communicate with their partners to coordinate which application will be used to execute the transfer
  • Currently, a small subset of Issuers is participating in Ginnie Mae’s SFPDM Early Adoption Program. They are submitting their MISMO compliant PDDs and providing Ginnie Mae with feedback on the SFPDM production application for upcoming enhancements.

For questions regarding the transition to SFPDM and the PDD, please reach out to Ginnie Mae’s dedicated support team at GinnieMae_MISMO_Support@hud.gov​. Additionally, you may call Ginnie Mae Customer Support at 1-833 GNMA HELP / 1-833-466-2435 and select option 3, then option 6 for inquiries related to this transition.​

1/21/2022 - APM 22-01

In support of the goal of achieving broad economic recovery following the pandemic, the Federal Housing Administration (FHA) established the Advance Loan Modification (ALM) which is proactively offered to eligible delinquent borrowers (Mortgagee Letter 2021-15). The proactive nature of the ALM, and the timeline associated with it, make it difficult for Issuers to comply both with FHA’s requirements to offer the ALM, and Ginnie Mae’s requirements for recordation and title insurance. Therefore, Ginnie Mae is streamlining its documentation requirements for FHA’s ALM loans to eliminate the requirement for recordation and title insurance except as provided below. This guidance is applicable only to ALMs, but also applies to all ALMs, even if executed prior to the publication of this APM. All other loan modifications must meet Ginnie Mae’s existing requirements in Chapter 24, part 2, Section A(2), which includes recordation.

The Issuer remains responsible for ensuring the ALM loan retains its first lien position and remains enforceable in accordance with its terms at the time of modification, throughout its modified term, and during any bankruptcy or foreclosure proceeding. In some cases, that may require recordation, such as when the modification agreement contains assignment of leases or rents provisions.

The Issuer is required to provide the following documentation to the Document Custodian:

  1. ​Original fully executed Loan Modification Agreement, signed by all borrowers, and in recordable form.
  2. If the Issuer determines recordation is necessary to maintain an enforceable first lien position, or if the loan modification agreement contains assignments of leases or rents provisions, the modification must be recorded for final certification.
  3. If the modification is recorded, the Issuer must also comply with the title insurance requirements in Chapter 24, Part 2, §A(2), as well as obtain the necessary title policy or endorsement, and subordination(s) as indicated on title.
  4. The modified loan file must clearly identify for the document custodian that it is an ALM.

Document custodians will not be required to verify that the ALM is recorded, unless the loan modification agreement contains provisions for assignment of leases or rents, or title insurance is present. However, if the ALM loan modification agreement is recorded, title insurance that meets the requirements of Chapter 24, Section 2 is required. A copy of an ALM loan modification agreement will only be acceptable if it contains clear evidence of recordation. Concurrently with this APM Ginnie Mae is updating Chapter 34 and Appendix V-01, Chapter 3 of the Mortgage-Backed Securities Guide, HUD Handbook 5500.1, REV-1 (MBS Guide) to reflect these exceptions.

The streamlined documentation requirements for ALM loans will sunset with June 1, 2023 pool issuances. ALMs in pool issuances on or after July 1, 2023, must meet Ginnie Mae’s standard requirements for recording and title insurance.

If you have any additional questions about the content of this memorandum, please contact your Account Executive in the Office of Issuer and Portfolio Management. ​​

12/9/2021 - APM 21-09
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 pools or loan packages submitted on or after January 3, 2022, 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: ​

​Maximum Loan Amounts (Net of any financed MIP or Guaranty Fee)​
​ ​
​​
​Units
​Contiguous 48 States, District of Columbia, American Samoa, and Puerto Rico
Alaska, Hawaii, Guam, and the U.S. Virgin Islands
​1
​$647,200
​$970,800
​2
​$828,700
​$1,243,050
​3​
​$1,001,650
​$1,502,475
​4
​$1,244,850
​$1,867,275

Additional information on conforming loan limits for the Commonwealth of the Northern Mariana Islands may be obtained directly from FHFA. High Balance Loans are eligible for Ginnie Mae MBS subject to the restrictions detailed in Ch. 9, Part 2, § B and Ch. 24 Part 2, § A(1) of the Mortgage Backed Securities Guide, HUD Handbook 5500.3, Rev-1 (MBS Guide).

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.


Last Modified: 10/14/2020 2:13 PM