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Ginnie Mae's Path to Accepting Digital Mortgages

In 2018, Ginnie Mae published a strategic agenda that previewed the development of its Digital Collateral Program, whereby Ginnie Mae would begin accepting electronic promissory notes and other digital loan documents as collateral by the year 2020. When we first began working towards this goal, the road was long, but the mission was clear and the path well-paved. Borrower demands for a more convenient and transparent closing experience are ever-growing, Issuers are eager to transition away from traditional wet-ink paper closings, and the technology necessary to support digital mortgage closings is readily available.

As the provider of the largest source of capital for veteran and low-to-moderate income homebuyers, Ginnie Mae has given careful and thoughtful consideration to the planning and deployment of its Digital Collateral Program. We recognize that policy and infrastructure changes this impactful require the input and support of all mortgage industry stakeholders – including borrowers, taxpayers, Issuers, document custodians, investors, technology providers, as well as partner federal insuring agencies and regulators. We made a concerted effort to reach out to all industry stakeholders to assess their needs, learn from their experiences, and leverage those experiences to make the Digital Collateral Program as successful as possible.

True to the promises made in 2018, Ginnie Mae has published APM 20-10, announcing the launch of its Digital Collateral Program. The program will provide numerous benefits to the industry as we inch closer to a fully mature digital mortgage ecosystem. Lenders can reduce operational costs, mitigate risks, and provide their borrowers with a better closing experience. Turn times at all stages of the loan production process can be reduced, manual validations can be automated, data quality can improve, and overall risk can be mitigated as the chain of collateral custody is inherently more accessible and verifiable. Lastly, with nationwide social distancing measures in place due to COVID-19, reducing or eliminating physical interactions during the mortgage closing, loan delivery, and pool certification processes are imperatives that can be addressed through the implementation of digital mortgage solutions.

Thank you to everyone who provided input to Ginnie Mae on the Digital Collateral Program – whether it is was through industry roundtables, conferences, information sharing sessions, or feedback provided to the Ginnie Mae eGuide RFI. Your support has directly led to this milestone event in Ginnie Mae’s history and we are grateful for it. In turn, we look forward to supporting Issuers and document custodians as they apply to participate in this initial phase of the Digital Collateral Program.