During a lapse in government funding, Ginnie Mae will reduce staffing to essential personnel levels. Importantly, Ginnie Mae will continue to remit timely payment of principal and interest to investors. There will also be no disruption of essential functions like the granting of commitment authority and support for continued issuance of Ginnie Mae-guaranteed Mortgage Backed Securities (MBS) and REMICs.
Through its standard continuity of operations protocol, Ginnie Mae will notify issuers and other stakeholders to provide specific operational instructions and contact information for the Ginnie Mae personnel that will manage ongoing business matters that arise during this period of lapsed funding.
About Ginnie Mae
Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae mortgage backed securities MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.
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Questions and Answers
Ginnie Mae’s Critical and Essential Functions During a Lapse in Government Funding
In the event of a government shutdown due to a lapse in government funding Ginnie Mae will continue operations, Ginnie Mae will limit its operations to those functions that are essential to its core operations to avoid any disruption to fulfilling its obligations.
Q: Will Ginnie Mae continue to operate during a shutdown?
A: Yes, Ginnie Mae will continue to operate if the government shuts down. Ginnie Mae’s role in the secondary mortgage market is essential to the market’s stability and liquidity and to maintaining overall economic security and has several employees and functions deemed as such. Therefore, Ginnie Mae employees will continue essential business operations under an emergency exception. Ginnie Mae will have limited staff available to manage business operations and answer questions.
Q: Will issuers be able to get commitment authority during a shutdown?
A: Yes, Ginnie Mae will continue to approve commitment authority.
Q: Can issuers continue to issue securities during a shutdown?
A: Yes, Ginnie Mae will continue to process pools and guarantee securities.
Q: Will investors still receive monthly principal and interest payments?
A: Yes, issuers will continue to make pass-through payments to investors during a shutdown, and all operations to ensure the timely payment of principal and interest continue.
Q: If there is a need for Ginnie Mae to pay out on its guaranty during a shutdown due to a shutdown, can Ginnie Mae do so?
A: Yes, Ginnie MBS carry the full faith and credit of the United States government. Even if there is a temporary government shutdown Ginnie Mae, must honor its guaranty.
Q: If an issuer needs to process a pool, where can it get information about Ginnie Mae’s procedures?
A: For questions about Ginnie Mae policies and procedures, you can consult the Ginnie Mae MBS guide on its website at ginniemae.gov, or contact Ginnie Mae’s pool processing agent, the Bank of New York, Ginnie Mae Helpdesk at 1 (800) 234 (4662).