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All Participants Memoranda (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.

All Multiclass Participants Memoranda (APMs) can be accessed via our online library (powered by AllRegs) or downloaded in Portable Document Format (PDF) from this page. Please click herearrow to download Adobe Acrobat Reader.

Only a subset of APMs are listed on this page. In order to access all APMs back to year 1999, please click herearrow. Please direct any questions you may have to your Ginnie Mae Account Executive in the Office of Issuer and Portfolio Management at (202) 708-1535.

Click here to search all MBS Guide content.​

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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.

6/17/2022 - APM 22-07

Ginnie Mae initiated a pilot Digital Collateral Program (DCP) in July of 2020. During the pilot, approved participants (“eIssuers”) securitized over $8 billion of Ginnie Mae MBS backed by digital notes (“eNotes”). The DCP pilot was successful operationally and affirmed Ginnie Mae’s belief that providing for digitalization of the collateral underlying guaranteed securities provides greater efficiencies and security for homeowners and program participants. Ginnie Mae is therefore opening the program to new applicants beginning June 20th, 2022.

All active Ginnie Mae Issuers in good standing may apply to participate as eIssuers that securitize government-backed mortgages comprised of eNotes. The eligibility requirements, procedures for application, and participation requirements for the DCP for both eIssuers and eCustodians are detailed in the Digital Collateral Program Guide (eGuide), Appendix V-07 of the Mortgage Backed Securities Guide, HUD Handbook 5500.1, Rev.3 (MBS Guide). Both the eIssuer Application to Participate in the DCP and the eCustodian Application to Participate in the DCP are published as Appendix V-08 and Appendix V-09 of the MBS Guide, respectively, and are available on the Ginnie Mae website.

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. Interested Issuers and Document Custodians may submit their applications individually or jointly. All applications to participate in the Digital Collateral Program must be submitted to Ginnie Mae via email at DCPA@hud.gov -- no hard copy submissions will be accepted.

Ginnie Mae will begin reviewing applications on a rolling basis beginning on June 21, 2022. If applicants meet the eligibility and application requirements, they will initially be granted conditional approval. At that time, 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, full approval to participate in the DCP, along with eMortgage Issuance Authority.

The Digital Collateral Program Guide, Appendix V-07, was updated on May 23, 2022. Please ensure that you are reviewing the May 2022 release of the eGuide for full eligibility and participation requirements. All questions or concerns about the DCP or this announcement may be sent to DCPA@hud.gov.

If you have further questions, please contact your Account Executive in the Office of Issuer and Portfolio Management directly, send an email to DCPA@hud.gov​.

6/16/2022 - APM 22-06

Due to the continuing impact of the COVID-19 Pandemic National Emergency, Ginnie Mae is extending the use of alternative audit procedures originally announced in APM 20-14: “Alternative Procedures Permitted for Certain Aspects of Issuer Annual Audit Report for Fiscal Year 2020” and extended in the APM 21-08: “Extension of Permitting Alternative Procedures for Certain Aspects Issuer Annual Audit Report”​ for Issuers with a fiscal year ending on or before September 30, 2022 as follows:

Chapter 3 Part 7 § A of the Mortgage-Backed Securities Guide (MBS Guide) requires Issuers to obtain and submit annual audited financial statements and Audit Reports, prepared by an independent auditor, in accordance with Chapter 6 of the HUD Audit Guide, which 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 ending on or before September 30, 2022, that require physical inspection and observation.

Ginnie Mae will accept audited financial statements and Audit Reports for Issuers with a fiscal year ending on or before September 30, 2022, where the independent auditor relied on alternative procedures to meet the Issuer’s document custodian annual audited financial statement and Audit Report review objectives requiring physical inspect and observation in lieu of the procedures outlined in the HUD Audit Guide.

Issuers must ensure that the audited financial statement and Audit Report 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.

This APM does not in any way change components of an Issuer’s audited financial statements to be performed by an independent auditor with a fiscal year ending on or before September 30, 2022, nor does it alter any other requirements not expressly addressed by this memorandum. The temporary flexibilities extended in this APM are expected to be discontinued as soon as practicable for Issuers whose fiscal years end beyond September 30, 2022. 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.

6/16/2022 - APM 22-05
Due to the continuing impact of the COVID-19 Pandemic National Emergency on forbearance levels and delinquency rates, Ginnie Mae is continuing the exemptions that were originally announced in APM 20-06: “Treatment of Mortgage Delinquency Ratios for Issuers Affected by COVID-19", and most recently extended in APM 21-04: “Extension of Temporary Relief from the Acceptable Delinquency Threshold requirement”​, from July 31, 2022 through January 31, 2023 (December 2022 investor reporting).

Ginnie Mae will continue to exclude any delinquencies occurring on or after April 2020 for the purposes of enforcing the provisions in Ch. 18, Part 3, §§ C & D. Ginnie Mae will provide this exclusion automatically through January 31, 2023, 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.

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. ​​

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Last Modified: 8/13/2021 10:02 PM