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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
10/31/2022 - APM 22-12

Periodically, Ginnie Mae implements minor updates to the Mortgage-Backed Securities Guide 5500.3, Rev-1 (“MBS Guide”) to ensure that its policies are clearly and accurately reflected and to notify Issuers about upcoming operational changes. Please note the following content updates being made to the MBS Guide. All updates are effective immediately.

​Guide Chapters
​Guide Changes
​Page Number(s)
​Ch. 2, Part 6 (3)
​Updated language to provide additional clarity on the corporate servicing experience requirement that the officer or employee performing the functions must still be employed by the applicant.
​2-3
​Ch. 3, Part 2
​Expanded language to include "and/or" in two sentences to add clarity in the guidance. The sentences now read: "An Issuer must notify Ginnie Mae's Office of Issuer & Portfolio Management of any pending adverse FHA action and/or any FHA Mortgagee Review Board action that affects the Issuer..." and "As applicable, an Issuer must also remain a VA, RD, and/or PIH approved lender in good standing at all times.".
​3-1
​Ch. 3, Part 6, Section A
​Inserted the acronym for errors and omissions ("E&O") insurance when it is first introduced in the section for clarity in later paragraphs.
​3-3
​Ch. 3, Part 7, Section B
​Updated the Mortgage Bankers Financial Reporting Form (MBFRF) quarterly submission process to reflect current practices.
​3-5
​Ch. 3, Part 7, Section B
​​Section B states that Web MB statements for the 1st, 2nd, 3rd, and 4th quarters are due no later than April 30, July 31, October 31, and February 28, respectively. The subsequent example used to illustrate the deadline referenced the incorrect date of July 30th. This was revised to July 31st for consistency with the earlier sentence.
​3-5
​Ch. 3, Part 12
Updated the date and time to certify Form HUD 11702 from January 1 to December 31 at "11:59PM Eastern" to be consistent with the deadline in the Master Agreements Management System (MAMS).​​3-16
​Ch. 11, Part 9, Section B
​Section B, "Pools and Loan Packages Past Due for Recertification", contained erroneous references to final certification. The errors were modified to correctly reference recertification.
​11-8, 11-9
​Ch. 15, Part 5, Section A
​Removed the last "Note" in Section A, as the July 1, 1980 date is obsolete. The corresponding Excess Funds Agreement Form (App. VI-08) will also be retired and reserved, as it will no longer be applicable.
​15-9
Ch. 18, Part 3, Section B (5)
​Added clarification that loss mitigation guidance for VA and USDA RD also apply, in addition to FHA.
​18-3
​Ch. 18, Part 3, Section C (4) and Section D
Corrected subsection lettering/numbering to align with section sequence and order.​
​18-5, 18-6
​Ch. 23, Part 1
​Revised language in the last sentence of Part 1 to correct an incomplete sentence. The sentence now reads: "If there is a conflict between the provisions of the applicable Guaranty Agreement and this Guide, the Guaranty Agreement must control."
​23-1
​Ch. 24, Part 2, Section A (1) and Section B
​Corrected subsection lettering/numbering to align with section sequence and order
​24-1, 24-2, 24-3, 24-13
​Ch. 24, Part 2, Section A (3) (a)
​Added clarifying language to include equity, in addition to cash down payment as an acceptable component for the 25% VA guaranty for special requirements for VA-guaranteed loans.
​24-6
​Ch. 30, Part 3, Section A (7)
​Removed references to Title I Letters TI-481 and TI-484 as the letters have been superseded by the FHA Single Family Housing Policy Handbook (Handbook 4000.1). Added Handbook 4000.1 as the reference instead.
​30-3
​App. I-02​
​The first page in the instructions contained the old address to send the hard copy of Form HUD 11702. The incorrect address was removed, and a reference to the Summary of Address was added, which includes the most up to date contact information.
​1

Additional miscellaneous edits have been made to correct minor errors, such as grammar, typing errors, and punctuation in Chapter 2, Chapter 3, Chapter 7, and Chapter 15 that are not itemized above.

10/21/2022 - APM 22-11

Ginnie Mae is extending the mandatory implementation date for single-family RBCR requirements announced in APM 22-09 by one year. Therefore, single-family Issuers and Applicants will not be required to comply with the single-family RBCR requirements contained in the above referenced APM until December 31, 2024.

Please note that corresponding amendments to single-family RBCR requirements for Issuers and Applicants in Chapters 2 and 3 of the Mortgage-Backed Securities Guide 5500.3 Rev-1 (“MBS Guide”) will now be published in December 2024.

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. ​

9/29/2022 - APM 22-10

President Biden has declared major disaster areas in the Commonwealth of Puerto Rico as a result of Hurricane Fiona and the State of Florida as a result of Hurricane Ian.

Chapter 34, Part 2 § B of the Mortgage-Backed Securities Guide, HUD Handbook 5500.3, Rev-1 (“MBS Guide”) provides, at Ginnie Mae’s discretion, for expanded loan buyout authority in the event of a presidentially-declared major disaster, for the purpose of supporting Issuers in offering relief to impacted borrowers (including relief in the form of late fee waivers, forbearance periods, loan modifications, and foreclosure moratoriums) to the extent permissible under the guidelines of the federal agency guaranteeing or insuring each loan.

To provide Issuers with the requisite flexibility to craft and implement the disaster relief strategy best suited for borrowers affected by Hurricane Fiona and Hurricane Ian, Ginnie Mae will permit Issuers to buy out loans that meet the following eligibility requirements: 1. the property securing the loan has been damaged and is located within a designated disaster area; or 2. the borrower is experiencing economic hardship related to the designated disaster, as established by the underlying insuring or guaranteeing agency.

Loans meeting the eligibility requirements identified above, may be bought out under this disaster provision, in accordance with the process described in Chapter 34, Part 2 §B, even if they are otherwise not eligible for buyout under Chapter 18. Issuers should obtain information on the designated disaster areas for Hurricane Fiona and Hurricane Ian directly from the Federal Emergency Management Agency at www.fema.gov/disasters​. If major disaster areas are declared by the President in additional states as a result of Hurricane Fiona and Hurricane Ian, affected areas would be covered by this APM.

Issuers must request and obtain prior written approval from Ginnie Mae to buy out eligible loans. Issuers should submit their request electronically using the Disaster Relief Buyout Request Letter in the form prescribed in Appendix XI-5 of the MBS Guide. Issuers must include all required loan-level information identified in Appendix XI-5 for each loan the Issuer is requesting approval from Ginnie Mae to buy out.

The Disaster Relief Buyout Request Letter must be signed by an individual authorized to act on behalf of the Issuer, as listed in the Issuer’s current Form HUD-11702, who will certify on behalf of the Issuer that each loan listed in the request meets the eligibility requirements discussed above, and that the Issuer is buying out the loan in order to provide relief to the homeowner.

The executed Disaster Relief Buyout Request Letter, including the required loan-level information, and any accompanying attachments must be legible and submitted in Portable Document Format (“PDF”) via email to either HFDAbuyout@hud.gov for eligible loans associated with Hurricane Fiona, or to HINDAbuyout@hud.gov for eligible loans associated with Hurricane Ian. Ginnie Mae will review the requests, and in its sole discretion, will approve or reject the request in whole, or in part, by responding to the email requesting approval. The loan buyout authority extended under this memorandum will expire on March 31, 2023.

A loan that is bought out under the authority of this disaster relief provision will be eligible for re-pooling only if it has successfully undergone a loan modification in compliance with the guidelines of the applicable federal agency guaranteeing or insuring the loan, and meets Ginnie Mae’s pooling parameters in Chapter 9, as well as modification requirements in Chapter 24 of the MBS Guide.

Multifamily Issuers facing substantial economic hardships as a result of Hurricane Fiona or Hurricane Ian should contact their Ginnie Mae Account Executive directly to assess potential relief options under Multifamily program.

If you have questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly. ​

8/17/2022 - APM 22-09
Ginnie Mae continually assesses the Mortgage-Backed Securities Guide 5500.3 Rev-1 (“MBS Guide”) requirements as risk characteristics within the MBS program evolve, with a goal of continuing to facilitate Issuer success in our program while minimizing risk to the American taxpayer. To promote stability in the housing finance system and to provide greater assurance that Ginnie Mae single-family Issuers (“SF Issuers”) can sustain themselves through all economic cycles, Ginnie Mae is revising its Issuer net worth and liquidity requirements in the MBS Guide for institutions seeking approval as Ginnie Mae single-family Issuers (“SF Applicants”) and existing Ginnie Mae SF Issuers. In addition, SF Applicants and SF Issuers that are non-depository mortgage companies will be required to maintain a Risk-Based Capital Ratio (“RBCR”). The new net worth and liquidity requirements, and the RBCR, are detailed below. 

Revised Net Worth Requirements

Effective September 30, 2023, for all SF Applicants, the minimum Net Worth requirement is $2,500,000, plus 0.25% (25 basis points) of the applicant’s total Government-Sponsored Enterprise (“GSE” or “Enterprise”) single-family outstanding servicing portfolio balance, plus 0.25% (25 basis points) of the applicant’s total non-agency single-family servicing portfolio. For more information, please see revised portions of Chapter 2, Part 9, § A(1) included with this APM. 

Effective September 30, 2023, for all SF Issuers, the minimum Net Worth requirement is $2,500,000, plus 0.35% (35 basis points) of the Issuer’s total effective Ginnie Mae single-family outstanding obligations, plus 0.25% (25 basis points) of the Issuer’s total GSE single-family outstanding servicing portfolio balance, plus 0.25% (25 basis points) of the Issuer’s total nonagency single-family servicing portfolio, at all times. For more information, please see revised portions of Chapter 3, Part 8, § A(1) included with this APM.

Revised Liquidity Requirements

I. Eligible Assets

Effective September 30, 2023, for SF Applicants and SF Issuers, the list of liquid assets that are eligible to meet Ginnie Mae’s liquidity requirement will be expanded to include GSE obligations (marked to market), GSE MBS (marked to market), and the following advances made as reflected in total assets reported on the balance sheet: advances made to cover principal and interest payments, taxes and insurance payments, and foreclosure advances relating to loans serviced on behalf of mortgagors and mortgage investors. For more information regarding the types of assets that are eligible to meet the liquidity requirement, see revised portions of Chapter 2, Part 9 § B(1) included with this APM. 

II. Required Liquidity

Effective September 30, 2023, SF Applicants are required to have and maintain liquid assets equal to the greater of: 

$1,000,000, or the sum of: 

       (i) 0.035% (3.5 basis points) of the applicant’s outstanding GSE single-family servicing Unpaid Principal Balance (“UPB”), if the applicants remits (or the Enterprise draws) the principal and interest only as actually collected from the borrower, plus

       (ii) 0.07% (7 basis points) of the applicant’s outstanding GSE single-family servicing UPB, if the applicant remits (or the Enterprise draws)  the principal or interest, or both, as scheduled, regardless of whether principal or interest has been collected from the borrower, plus

      (iii) 0.035% (3.5 basis points) of the applicant’s outstanding non-agency single-family UPB. 

Effective December 31, 2023, SF Applicants that originated more than $1,000,000,000 in UPB of any residential first mortgages, regardless of channel (including retail, wholesale correspondent, and wholesale broker) in the most recent four-quarter period must have liquid assets equal to the greater of at least $1,000,000 or the sum of (i) through (iii) listed immediately above, and

      (iv) 0.5% (50 basis points) of the sum of the applicant’s total Loans Held For Sale (“HFS”), plus

      (v) 0.5% (50 basis points) of the applicant’s UPB of Interest Rate Lock Commitments (“IRLCs”) after fallout adjustments. UPB of IRLCs after fallout adjustments is UPB of IRLCs after making adjustments for estimated fallout (i.e., excluding part of the balance because some locks are not expected to close). 

For more information, please see revised portions of Chapter 2, Part 9, § B(1) included with this APM. 

Effective September 30, 2023, SF Issuers are required to have and maintain liquid assets equal to the greater of:

$1,000,000, or the sum of:

      (vi) 0.10% (10 basis points) of the Issuer’s outstanding Ginnie Mae single-family servicing UPB, plus

      (vii) 0.035% (3.5 basis points) of the Issuer’s outstanding GSE single-family servicing UPB, if the issuer remits (or the Enterprise draws) the principal and interest only as actually collected from the borrower, plus

      (viii) 0.07% (7 basis points) of the Issuer’s outstanding GSE single-family servicing UPB, if the Issuer remits (or the Enterprise draws) the principal or interest, or both, as scheduled, regardless of whether principal or interest has been collected from the borrower, plus

      (ix) 0.035% (3.5 basis points) of the Issuer’s outstanding non-agency single-family servicing UPB, plus 

Effective December 31, 2023, SF Issuers that originated more than $1,000,000,000 in UPB of any residential first mortgages, regardless of channel (including retail, wholesale correspondent, and wholesale broker) in the most recent four-quarter period must have liquid assets equal to the greater of at least $1,000,000 or the sum of (vi) through (ix) listed immediately above, and

      (x) 0.5% (50 basis points) of the sum of the Issuer’s total Loans HFS, plus
 
      (xi) 0.5% (50 basis points) of the Issuer’s UPB of IRLCs after fallout adjustments. UPB of IRLCs is defined in (v) above. 

For more information, please see revised portions of Chapter 3, Part 8, § A(2) included with this APM. 

Revised Institution-wide Capital Requirements for Certain Single-family Applicants and Issuers 

Ginnie Mae is introducing a Risk Based Capital requirement for certain single-family Issuers. Our Issuer portfolio has continued to shift to non-depository mortgage companies, and our analysis supports a risk-based capital requirement as a critical component for the ongoing stability and certainty of Ginnie Mae’s MBS program. This new requirement is intended to measure Issuers’ ability to sustain the volatility of market disruptions and reflects the varying risk among different asset types.

Effective December 31, 2023, SF Applicants that are not covered by the requirements for financial institutions in the MBS Guide Chapter 2, Part 9, § B(2)(a) and (b), and SF Issuers that are not covered by the requirements for financial institutions in the MBS Guide Chapter 3, Part 8, § A(3)(a) and (b) must maintain a Risk-Based Capital Ratio (“RBCR”) of at least 6% in addition to continuing to maintain a Leverage Ratio of at least 6%. RBCR is Adjusted Net Worth less Excess Mortgage Servicing Rights (“MSRs”) (MSRs in excess of an SF Applicant’s or SF Issuer’s Net Worth) divided by total Risk-Based Assets. For more information and details regarding the new RBCR requirement, please see revised portions of Chapter 2, Part 9, § B(2)(c) for SF Applicants, and Chapter 3, Part 8 § A(3)(c) for SF Issuers included with this APM. 

Chapter 6 of the HUD Consolidated Audit Guide (“Audit Guide”) will be updated to direct independent auditors to the MBS Guide for the current Institution-wide Capital Requirements for SF Applicants and SF Issuers. Until the Audit Guide update takes place, the requirements in the MBS guide supersede the requirements in the Audit Guide if the requirements in these two guidance documents conflict. 

Please note that the numbering of portions of the currently posted versions of Chapter 2 and Chapter 3 will be amended when the above changes take place in September 2023 and December 2023. 

If you have questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly. 
 





8/4/2022 - APM 22-08

To ensure that Mortgage-Backed Securities program requirements appropriately reflect the risk associated with different Issuer profiles, Ginnie Mae is revising the Institution-wide Capital Requirements in the Mortgage-Backed Securities Guide, 5500.3 Rev-1 (“MBS Guide”), Chapters 2 and 3 for financial institutions seeking approval as Ginnie Mae Single-Family, Multifamily, Manufactured Home and Home Equity Conversion Mortgage MBS (“HMBS”) Issuers (“Applicants”) as well as existing Ginnie Mae Single-Family, Multifamily, Manufactured Home and HMBS Issuers (“Issuers”). In addition, Ginnie Mae is revising Program Risk Parameters in Chapter 3 for all Issuers. All the changes announced in this APM will be effective beginning with Issuer fiscal year end December 31, 2022, and thereafter.

Revised Institution-Wide Capital Requirements

  • Applicants and Issuers that are subject to federal regulation by the Board of Governors of the Federal Reserve System (“the Fed”), Federal Deposit Insurance Corporation (“FDIC”), Office of the Comptroller of the Currency (“OCC”), National Credit Union Administration (“NCUA”) or Federal Housing Finance Agency (“FHFA”) must meet all regulatory capital requirements to be considered at least “well-capitalized” or its equivalent. Applicants and Issuers in this category include but are not limited to bank holding companies (“BHCs”), banks, wholly owned subsidiaries of BHCs that are consolidated for purposes of regulatory oversight, thrifts, savings and loan holding companies, credit unions and Federal Home Loan Banks. Non-depository mortgage companies that are not subject to federal prudential regulation are not included in this category. 
  • Applicants and Issuers that are instrumentalities of a U.S. state or territory, including but not limited to State Housing Finance Authorities or Agencies, are not subject to institution-wide capital requirements.

Applicants and Issuers that are not covered by the requirements for financial institutions described above (see MBS Guide Chapter 2, Part 9, §§ B(2)(a) and (b) for Applicants, and MBS Guide Chapter 3, Part 8, §§ A (3) (a) and (b) for Issuers) must continue to maintain a “Leverage Ratio” of at least 6% as set forth in MBS Guide Chapter 2 Part 9 §§ B (2) (c) for Applicants and MBS Guide Chapter 3, Part 8, §A (3) (c) for Issuers. For purposes of calculating the Leverage Ratio (Total Adjusted Net Worth divided by Total Assets), Total Assets do not include Ginnie Mae Loans Eligible for Repurchase (GMLERs). GMLERs are delinquent loans that are eligible to be bought out of a pool but that have not yet been bought out, consistent with MBS Guide Chapter 18, Part 3 § B (1). GMLERs are not applicable to the HMBS program.

Revised Program Risk Parameters

If an approved Issuer is reliant on support from a corporate parent to maintain its compliance with Ginnie Mae requirements, as determined by factors including the Issuer’s financial history, the Issuer’s current financial standing, and corporate family or affiliate matters, the corporate parent’s financial standing should be such that it could meet the financial requirements as a Ginnie Mae Issuer. If the information regarding the corporate parent’s financial standing is not publicly available, the corporate parent may be required to provide it to Ginnie Mae no more frequently than on a quarterly basis. For more information, see MBS Guide Chapter 3, Part 21 § B (1) (e).

Effective December 31, 2022, Chapters 2 and 3 of the MBS Guide will be amended in accordance with this Memorandum. Chapter 6 of the HUD Consolidated Audit Guide (“Audit Guide”) will be updated to direct independent auditors to the MBS Guide for the current Institution-wide Capital Requirements for Applicants and Issuers. Until the Audit Guide update takes place, the requirements in the MBS guide supersede the requirements in the Audit Guide if the requirements in these two guidance documents conflict.

If you have questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly.


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