Ginnie Mae permits Issuers to delegate some of their responsibilities under the Mortgage Backed Securities Program to other Issuers operating as a subservicer, consistent with Ginnie Mae’s policies. Chapter 4 of the Mortgage-Backed Securities Guide, HUD Handbook 5500.3, Rev-1 (MBS Guide) prohibited Issuers from delegating to a subservicer the authority to sign any certifications, including the certification submitted as part of the Issuer’s Monthly Summary Report, Form HUD-11710D. Ginnie Mae understands that this prohibition made it difficult for Issuers to comply with reporting deadlines. Effective immediately, Ginnie Mae will permit Issuers to delegate to their subservicer the authority and responsibility to prepare and transmit the Issuer’s Monthly Summary Report (HUD-11710D).
Updates to Allowable Delegations under Chapter 4
Each month, Issuers are responsible for reporting pool and loan level accounting data through the Reporting and Feedback System (RFS) in the Ginnie Mae Enterprise Portal (GMEP) and are also responsible for certifying the accuracy of that data on the form HUD-11710D submitted through GinnieNET. Ginnie Mae has allowed Issuers to delegate their obligation to report pool and loan level accounting data through RFS, but Ginnie Mae did not allow Issuers to delegate their obligation to prepare and transmit the form HUD-11710D data and certification, which summarizes the pool and loan level accounting data that is submitted in RFS. Effective immediately, Issuers may authorize a subservicer to transmit the form HUD-11710D data and certification so long as both entities are parties to an executed form HUD-11707, Master Servicing Agreement, that has been approved by Ginnie Mae.
Issuer and Subservicer Responsibilities
Issuers are responsible for any and all representations submitted in its monthly pool and loan level accounting report and in its form HUD-11710D regardless of whether these reporting responsibilities were delegated to or performed by a subservicer. Likewise, Issuers must ensure that their subservicer and the relevant subservicer’s employees have the access to Ginnie Mae applications necessary to prepare and transmit the aforementioned accounting reports.
Effective immediately, subservicers are required to include, on their own form HUD-11702, Resolution of the Board of Directors and Certificate of Authorized Signatures, any of the subservicer’s employees who will certify the form HUD-11710D on behalf of any other Ginnie Mae Issuer. Likewise, subservicers must ensure that any of their employees who prepare and transmit accounting reports on behalf of another Ginnie Mae Issuer have the access level necessary to perform such functions in the Ginnie Mae applications.
Impact of Policy Update on Renewal of Master Agreements
All other MBS Guide requirements governing subservicing arrangements remain unchanged. Issuers remain liable to Ginnie Mae for any acts or omissions made on their behalf by subservicers.
If you have any questions regarding this announcement, please contact your Account Executive directly or at (202) 708-1535.