Skip Ribbon Commands Skip to main content
gmlogo searchimage
* To
* From
Print Friendly

Press Release​s​

Ginnie Mae publishes new Servicing and Issuer application rules: Guide updates promote a stronger government loan system
Contact: Douglas Robinson
Published Date: 11/16/2018 7:30 AM

Washington, DC – Ginnie Mae today published a new All Participants Memorandum (APM 18-07) aimed at strengthening the stability and integrity of the mortgage-backed securities market. APM 18-07 outlines steps the agency will take to evaluate the credit strength of new Issuers, implements new notification requirements for issuers engaged in certain subservicer advance or servicing income agreements, and codifies Ginnie Mae’s ability to impose additional financial or operational requirements on program participants when warranted by market conditions.

Specifically, APM 18-07 does the following:

  • Requires servicers to notify Ginnie Mae if any arrangements are made to finance Ginnie MSRs, ensuring that Ginnie Mae can adequately monitor risks as they move throughout the system.
  • Modifies application requirements for new issuers so that applicants who would immediately appear on Ginnie Mae’s internal financial conditions watchlist are not approved as Ginnie Mae issuers.
  • Clarifies Ginnie Mae’s authority to require supplemental financial or operating requirements before certain issuers are granted additional commitment authority.

“These enhancements add to the factors Ginnie Mae will consider as we keep pace with an evolving mortgage market, protect taxpayers, and ensure that important differences in risk among issuers and servicers are properly accounted for,” said Michael Bright Ginnie Mae EVP and COO. “Our goal continues to be the assurance of a safe and sound program as well as a healthy mortgage-backed security.”

There are nearly 400 approved Issuers of Ginnie Mae MBS. As of Sept. 30, more than $2.008 trillion of Ginnie Mae MBS were outstanding, comprised of more than 11 million loans.

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.