| 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 the 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.
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| 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:
- Original fully executed Loan Modification Agreement, signed by all borrowers, and in recordable form.
- 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.
- 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.
- 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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| 12/9/2021 - APM 21-09 | | Pursuant to the Housing and Economic Recovery Act of 2008 (HERA), the Federal Housing Finance Agency (FHFA) has announced increased conforming loan limits. Accordingly, Ginnie Mae is revising its definition of High Balance Loans as follows. Effective for pools or loan packages submitted on or after January 3, 2022, a High Balance Loan is defined as a single-family forward mortgage loan with an original principal balance (minus the amount of any upfront mortgage insurance premium) that exceeds the following limits:
Maximum Loan Amounts (Net of any financed MIP or Guaranty Fee)
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| | | Units
| Contiguous 48 States, District of Columbia, American Samoa, and Puerto Rico
| Alaska, Hawaii, Guam, and the U.S. Virgin Islands | 1
| $647,200
| $970,800
| 2
| $828,700
| $1,243,050
| 3
| $1,001,650
| $1,502,475
| 4
| $1,244,850
| $1,867,275
|
Additional information on conforming loan limits for the Commonwealth of the Northern Mariana Islands may be obtained directly from FHFA. High Balance Loans are eligible for Ginnie Mae MBS subject to the restrictions detailed in Ch. 9, Part 2, § B and Ch. 24 Part 2, § A(1) of the Mortgage Backed Securities Guide, HUD Handbook 5500.3, Rev-1 (MBS Guide).
If you have any questions regarding this announcement, please contact your Account Executive in the Office of Issuer and Portfolio Management directly or at (202) 708-1535.
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| 11/23/2021 - APM 21-08 | | Due to the continuing impact of the COVID-19 Pandemic National Emergency, Ginnie Mae will extend 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” for Issuers with a fiscal year ending on or before March 31, 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 March 31, 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 March 31, 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 March 31, 2022, 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.
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| 11/15/2021 - APM 21-07 | | In consideration of the impact of the COVID-19 pandemic and associated insuring agency guidelines for mortgage servicing, Ginnie Mae understands that certain features of the Digital Collateral Program, namely the ability to use electronic signatures and to adopt remote online notarizations, are flexibilities that would benefit all Issuers and borrowers in the government-backed mortgage segment. Therefore, effective with the publication of this APM, Ginnie Mae hereby permits the use of electronic signatures and remote online notarization for loan modification agreements on “paper” mortgages. Requirements for modifications of eMortgages or eNotes will be addressed in a separate APM.
Effective immediately, all approved Ginnie Mae Issuers are permitted to use electronic signatures when executing loan modification agreements provided that: 1) The promissory note is a paper promissory note bearing a wet signature;
2) The electronically signed loan modification agreement complies with the recording jurisdiction's recordation requirements; and
3) The eClosing platform or other system(s) the Issuer uses to obtain and maintain borrowers’ electronic signatures on the loan modification agreement must:
- Clearly support the verification of the Borrower’s identity;
- Clearly identify the symbol or process used as an electronic signature by the borrower and the purpose of the electronic signature;
- Present the loan modification agreement in compliance with all applicable state and federal requirements concerning the content, display, and format of information and retention (as required for paper records);
- Clearly identify the loan modification agreement as the electronic record being presented for electronic signature;
- Capture clear evidence that is compliant with all applicable state and federal requirements (including ESIGN) of the borrower’s agreement to receive electronic records and the borrower’s intent to adopt the electronic signature and to electronically sign the loan modification agreement and other electronic records as applicable, and maintain a record of such agreement;
- Attach the electronic signature to, or associate the electronic signature with, the loan modification agreement and any other electronic records associated with the loan modification executed by the borrower;
• Attribute the electronic signature to the applicable borrower;
- Include the borrower’s printed name in a visible and legible manner on the loan modification agreement;
• Include a date and time stamp on the loan modification indicating when the borrower executed the loan modification agreement;
- Track and log actions related to the creation and signing of the loan modification agreement;
- Provide reasonable evidence that loan modification agreements created and maintained by the system are not (and have not been) subject to unauthorized access or alteration;
- Be capable of accurately reproducing the fonts, styling, margins, and other physical features of the loan modification agreement when electronically displayed and printed post-execution and as required by state and/or federal law; and
- In all other ways ensure that the document produced is in compliance with insuring agency guidelines and Ginnie Mae’ s guidance on Loan Modifications.
4) The electronically signed loan modification agreement is delivered to the Document Custodian in hard copy or delivered via electronic transmission with the express consent of the Document Custodian, bearing evidence of recordation, including information relating to the date and time of recordation. If a Document Custodian accepts an electronic copy in lieu of the hard copy, the Custodian is responsible for producing and placing a hard copy of the Loan Modification Agreement in the pool and loan file. If the Modification Agreement is delivered via electronic submission, it may be delivered as a MISMO Category 1, 2 or 4 Version 1.02 SmartDoc document or Portable Document Format (PDF) document.
Remote Online Notarization (RON)
Ginnie Mae is also permitting the use of Remote Online Notarization (RON) for notarizations associated with Loan Modification Agreements subject to the Notarization Requirements outlined in Section 3250.00 of the Digital Collateral Program Guide, Appendix V-07 of the MBS Guide (eGuide).
Please note that the securitization of mortgages where the promissory note is an eNote is reserved for participants in the Digital Collateral program only (approved specifically as eIssuers). This memorandum does not permit Issuers that have not been approved as eIssuers to securitize or deliver for securitization by Ginnie Mae mortgages where the Promissory Note is an eNote. All other loan and pool certification requirements not expressly addressed by this memorandum remain unchanged.
If you have any additional questions about the content of this Memorandum, contact your Account Executive in the Office of Issuer and Portfolio Management.
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