WASHINGTON, D.C. – Ginnie Mae announced today in All Participants Memorandum (APM 21-07 that it is expanding the use of certain features found in its digital collateral program to paper mortgages, a move expected to make it more efficient for Issuers to modify paper mortgages.

“Ginnie Mae is committed to providing Issuers with the tools they need to make it possible for qualified homeowners modifying their mortgages to do so with as few obstacles as possible,” said Acting Executive Vice President Michael Drayne. “Tens of thousands of homeowners coming out of the forbearance and other pandemic-related mortgage relief programs may utilize mortgage modifications to improve their financial situation, and we believe this policy change will help make the process proceed more smoothly for homeowners and servicers.”

Specifically, approved Ginnie Mae issuers are permitted to use electronic signatures to execute a loan modification provided that the original mortgage note bears a wet signature and the modification complies with the local jurisdiction’s recording requirements. The new policy also allows for the use of Remote Online Notarization (RON) for notarizations associated with Loan Modification Agreements subject to requirements outlined in the Ginnie Mae MBS Guide. These and other program details are further discussed in APM 21-07​.

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 MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the Department of Housing and Urban Development’s 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.