|12/31/2020 - APM 20-20|
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 issuances on or after January 1, 2021, 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:
||Contiguous 48 States, District of Columbia, American Samoa, and Puerto Rico
||Alaska, Hawaii, Guam, and the U.S. Virgin Islands|
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.
|12/16/2020 - APM 20-19|
Ginnie Mae published APM 20-12, Ineligibility of LIBOR Products for Single-Class MBS, on September 21, 2020. APM 20-12 prohibited the securitization of new LIBOR-Based adjustable rate HECMs effective with HMBS issued on January 1, 2021 or later. After further consideration of the impact of the COVID-19 Pandemic on a lender’s ability to close HECM transactions that were initiated prior to the publication of APM 20-12, Ginnie Mae is hereby extending the deadline for securitization of new LIBOR Based HECMs as follows.
Ginnie Mae will restrict the eligibility of new adjustable rate HECMs for securitization into any HMBS pool type that relies on LIBOR, including pool types “C AL” and “C ML,” effective with HMBS issued on or after March 1, 2021. This means that the first participation of any LIBOR-Based HECM must be securitized into HMBS with an Issue Date of February 1, 2021 or earlier to remain eligible for securitization under Ginnie Mae’s program. Subsequent Participations—that is participations other than the first participation—that are associated with a HECM loan that is backing HMBS with an Issue Date of February 1, 2021 or earlier will continue to be eligible for securitization without restriction until further notice.
Chapter 35 of the MBS Guide, 5500.3, Rev-1 has been amended in accordance with this memorandum. If you have any additional questions please contact your Account Executive in the Office of Issuer and Portfolio Management.
|12/16/2020 - APM 20-18|
Due to the impact of the COVID-19 Pandemic National Emergency, Ginnie Mae is allowing an extension to the usual deadline for the annual submission of form HUD-11702 and renewal of other Master Agreements as follows.
Chapter 3 Part 12 of the Ginnie Mae Mortgage-Backed Securities Guide (MBS Guide) requires Issuers to complete annual certifications of the existing Resolution of Board of Directors and Certificate of Authorized Signatures, form HUD-11702 (Appendix I-2), or to replace the existing form HUD 11702 with a current form, by January 1 each year. Moreover, Chapter 10 Part 3 Section (A) requires Issuers to update or renew all Master Agreements on file with Ginnie Mae’s Pool Processing Agent by January 1, including the Master Agreements covering “(1) each subcontract servicer, (2) each P&I custodial account and escrow custodial account for each of its funds custodians, and (3) each document custodian.”
Owing to the ongoing impact of the COVID-19 Pandemic National Emergency on business processes, Ginnie Mae is extending the next due date for the Form HUD-11702 and other Master Agreement renewals from January 1 to July 1, 2021.
For the avoidance of doubt, this APM is a one-time extension of deadline and does not alter the requirements of form HUD-11702 or the other Master Agreements themselves, nor does it alter any other requirements not expressly addressed by this memorandum.
If you have further questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly. For technical assistance with the Master Agreement Management System application, please contact Ginnie Mae Customer Support at (833) 466-2435, Option # 1.
|12/7/2020 - APM 20-17|
Due to the continuing impact of the COVID-19 Pandemic National Emergency on forbearance levels and delinquency rates, Ginnie Mae is extending the exemptions that were announced in the APM 20-06: “Treatment of Mortgage Delinquency Ratios for Issuers Affected by COVID-19" from December 31, 2020 through July 31, 2021 (June 2021 investor reporting).
Ginnie Mae will continue to exclude any delinquencies occurring on or after April 2020 when calculating the delinquency ratios for the purposes of enforcing the provisions in Ch. 18, Part 3, §§ C & D. Ginnie Mae will provide this exclusion automatically through July 31, 2021 to Issuers that were compliant with Ginnie Mae’s delinquency rate thresholds as demonstrated by their April 2020 investor accounting report, reflecting March 2020 servicing data. Issuers do not need to change any aspect of their monthly report to benefit from this exclusion and must continue to report loans in forbearance as delinquent in accordance with established procedures.
If you have further questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly.
|12/4/2020 - APM 20-16|
The purpose of this Memorandum is to update Ginnie Mae Issuer eligibility requirements for new applicants to enable each applicant to better assess its readiness, to enhance the application process experience, and to facilitate greater understanding of the evaluation process. Effective immediately, Ginnie Mae is revising the MBS Guide to delineate in greater detail the corporate or entity-level qualifications as well as the staff experience requirements that each applicant must have at the time of the application.
Requirements for All Applicants
Currently, the Guide contains minimum requirements with respect to the following: good corporate standing, FHA approval, the extent of corporate servicing experience, legal and physical office separation, staff experience levels, and staff composition. With this APM, Ginnie Mae is updating Chapter 2 Part 3 (1) to more specifically require applicants to have retained FHA approval for a minimum of three years. Ginnie Mae is also modifying Chapter 2 Part 6 to incorporate new paragraphs 1 and 2, which delineate additional specific requirements for all applying entities and their staff.
Requirements for Single-Family Applicants
Ginnie Mae is also identifying additional factors assessed in determining whether a Single-Family applicant satisfies the corporate servicing experience requirement under Chapter 2, Part 6. Under the revisions, an applicant must have a minimum of two years of corporate servicing portfolio management experience with respect to both performing and non-performing loans. The applicant must also demonstrate that the size of the servicing portfolio met minimum monthly average unpaid principal balance requirement during the 12 consecutive months prior to application. For more information regarding the servicing experience requirements for Single-Family applicants, please see Chapter 2, Part 6 § (3)(a).
Requirements for Multifamily Applicants
Chapter 2 Part 6 § (3)(b) updates requirements for Multifamily applicants. The revisions specify that the applicant must be an approved FHA Multifamily Accelerated Processing (“MAP”) lender at the time of application. Moreover, the applicant must have a five-year history of FHA mortgage originations and a five-year history of performing its own FHA Multifamily servicing.
The revised eligibility requirements apply to both new applications as well as applications that have been submitted to Ginnie Mae and are pending approval decision as of the publication of this APM. Any applicant that has submitted an application that is pending Ginnie Mae’s approval as of the date of this APM may utilize one of the following two options if desired:
(1) Amend its application by submitting additional documentation by January 4, 2021. Any applicant who has submitted an application as of November 20, 2020 and wants to provide additional materials should email the Issuer Applications Processing Team at USDeloitteGinnieMaeSFApplications@deloitte.com.
(2) Withdraw the application without prejudice. The applicant will be permitted to resubmit the application in the future without having to pay additional application fees.
Chapter 2 Part 3 (1) and Part 6 have been modified in accordance with this Memorandum. If you have further questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly.
|12/4/2020 - APM 20-15|
In APM 20-07, Ginnie Mae established new pooling eligibility requirements for Re-Performing Loans bought out on or after July 1, 2020 and announced that it would introduce a new pool type to securitize the Re-Performing Loans restricted from securitization by APM 20-07. This memorandum implements the new C RG Pool type effective for MBS with an Issue Date of February 1, 2021, and after.
New C RG Pool Parameters
The C RG Pool is a Ginnie Mae II custom pool that must be composed exclusively of Re-Performing Loans. Other than this Re-Performing Loan composition requirement, the parameters for a C RG Pool are identical to the pooling parameters applicable to Ginnie Mae II Custom Single Family (C SF) Pools, including for example, minimum pool and loan package volumes, mortgage maturity requirements, and the homogeneity rules in Chapter 24, Part 2, § B of the MBS Guide.
New Loan Purpose Code 5 – Reperforming Loans and Applicable Pooling Restrictions
Ginnie Mae is implementing a new Loan Purpose Code in GinnieNET to enforce the C RG Pool parameters and the other pooling restrictions announced in APM 20-07. Except as provided below, all Re-Performing Loans as defined in Chapter 18 of the MBS Guide must be securitized into C RG Pools and identified under Loan Purpose Code “5 – Re-Performing Loan RG” at the time of submitting the loan data into GinnieNET. By way of reminder, Re-Performing Loans are eligible for securitization 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.”
Re-Performing Loans are not eligible for securitization into any other Ginnie Mae I or Ginnie Mae II pool type, with the exception of Re-Performing Loans bought out prior to July 1, 2020 and Re-Performing Loans where the borrower had entered into forbearance prior to March 1, 2020. Re-Performing Loans that were bought out prior to July 1, 2020 as well as Re-Performing Loans associated with forbearance agreements granted prior to March 1, 2020 are excluded from the restrictions of APM 20-07 and may be delivered into any available Ginnie Mae pool without restriction, including C RG pools.
The Loan Purpose Code used when pooling a Re-Performing Loan that falls within one of these two exclusions depends on the designated pool type. If the loan is being delivered into any Ginnie Mae I or Ginnie Mae II pool, other than the C RG Pool, the loan must be identified by the same Loan Purpose Code which would have applied to the loan prior to the publication of APM 20-07 (i.e. Purchase, Loan Modification, etc.), and must not be identified by Loan Purpose Code 5. If the Issuer decides to pool a Re-Performing Loan that falls into one of the exclusions into a C RG pool, then it must use Loan Purpose Code 5 at the time of pooling.
GinnieNET Loan and Pool Data Delivery Requirements for C RG Pool
Issuers that import loan data into GinnieNET must ensure that their file layout supports inserting “RG” into the file layout position designated for the Pool Type as well as a “5” in the file position designated for the Loan Purpose Code associated with each loan. Similarly, Issuers that rely on manual data entries must ensure that Loan Purpose Code 5 is selected for any Re-Performing Loan when constructing the Form HUD 11706, Schedule of Pooled Mortgages in GinnieNET, as applicable to the C RG pool. Ginnie Mae will not accept hard copy submissions for C RG Pools. GinnieNET will accept submission of C RG pools beginning on January 19th for securities with an Issue Date of February 1, 2021, and thereafter. Issuers may refer any questions relating to the requisite GinnieNET file layout to the Ginnie Mae helpdesk at 1-833-GNMA HELP or by contacting firstname.lastname@example.org.
Consistent with this memorandum, Ginnie Mae is updating Chapter 18, Part 3 § B(6) of the MBS Guide to address questions received since the publication of APM 20-07 relating to pooling restrictions on Re-Performing Loans. Ginnie Mae is also updating Chapter 1, Part 3, § B(2), Chapter 9, Part 2, §§ B, C, and D, Part 3, §§ D and G, Chapter 24, Part 2, § A(3), and Appendix IV-20. All MBS Guide updates referenced here are effective immediately.
Any act that is not in compliance with the pooling restrictions or the data submission requirements as set forth in the MBS Guide constitutes a violation of the terms of the Guaranty Agreement and is therefore grounds for Issuer sanctions under the MBS Program. 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.
|11/9/2020 - APM 20-14|
Due to the impact of the COVID-19 Pandemic National Emergency, Ginnie Mae is allowing the use of alternative audit procedures for Issuers with a fiscal year ending on or before December
31, 2020 as follows.
Chapter 3 Part 7 § A of the Mortgage-Backed Securities Guide (MBS Guide) requires Issuers to obtain and submit an independent public audit prepared in accordance with Chapter 6 of the HUD Audit Guide, which itself requires auditors to review the processes and controls of
document custodian(s) associated with the Issuer. Ginnie Mae recognizes that, due to the COVID-19 National Emergency, independent auditors may not be able to perform certain document custodian review audit activities for the fiscal year 2020 that require physical inspection and observation.
For this reason, Ginnie Mae will accept independent public audits for Issuers with a 2020 fiscal year ending on or before December 31, 2020, where the independent auditor relied on alternative procedures to meet the Issuer’s document custodian independent public audit review objectives requiring physical inspect and observation in lieu of the procedures outlined in the HUD Audit Guide.
Issuers must ensure that the independent public audit documentation submitted to Ginnie Mae details the condition necessitating the use of an alternative procedure, a description of the alternative procedure used, and the independent auditor’s rationale outlining how the alternative procedures met the original objective of the document custodian review audit.
For the avoidance of doubt, this APM does not in any way change components of an Issuer’s audited financial statements to be performed by an independent public auditor with a fiscal year ending in 2020, nor does it alter any other requirements not expressly addressed by this memorandum. Chapter 3 of the MBS Guide has been modified to incorporate the provisions of this memorandum.
If you have further questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly.
|9/24/2020 - APM 20-13|
In support of the relief and loss mitigation options made available to borrowers affected by COVID-19, VA Circular 26-20-33 “Deferment as a COVID-19 Loss Mitigation Option for CARES Act Forbearance Cases” clarifies the circumstances under which a deferment may be exercised as a loss mitigation option after a forbearance period. In light of this circular, Ginnie Mae is hereby reminding Issuers that existing MBS Program requirements may impact the pooling eligibility of loans where a deferment is exercised as a loss mitigation option or as part of an informal workout agreement.
Considerations for Pooled Loans
For any pooled loan, the deferment loss mitigation option can be exercised without repurchasing the loan from the pool. Repurchasing the loan from the pool prior to exercising the deferment will subject the loan to existing re-pooling restrictions. Once a deferment is exercised, Ginnie Mae allows the Issuer to treat the loan as current for investor accounting as well as pool and loan reporting purposes. Any new delinquency that occurs after the deferment must be treated as a regular delinquency going forward.
Considerations for Non-Pooled Loans
Any loan that is not pooled at the time the deferment option is exercised becomes a Re-Performing Loan within the meaning of Chapter 18 of the MBS Guide and is subject to the restrictions announced in APM 20-07. Please note that Ginnie Mae’s MBS Program pooling eligibility requirements prohibit Issuers from delivering mortgages that combine the deferment option with a loan modification. For example, a loan modification agreement that reflects the deferment as a lump sum payment due at maturity is not considered a level-payment loan and is therefore ineligible for inclusion in any Ginnie Mae single-family MBS.
Chapter 24 Part 2 § A (2) has been modified in accordance with this memorandum and is effective immediately. If you have further questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly.
|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.
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