WASHINGTON, D.C.— Today, in All Participants Memorandum (APM) 24-08, Ginnie Mae announced the recovery planning requirements for non-depository Issuers whose portfolios equal or exceed a remaining principal balance (RPB) of $50 billion at the end of the calendar year. The initial recovery plans for the calendar year 2024 are due no later than June 30th, 2025.

Issuers’ recovery plans must include information related to its organizational structures as well as technology systems to provide Ginnie Mae visibility into an Issuer’s core information systems leveraged to service its Ginnie Mae portfolio. Ginnie Mae will evaluate the recovery plans submitted by the Issuers, notifying them of either approval or the need for additional information. Issuers will be required, every two years, to update and resubmit their recovery plans or attest that the most recently approved recovery plan, including any out-of-cycle material changes made to their plan, remains current.

These requirements will assist Ginnie Mae in upholding its explicit government-backed guaranty, should an Issuer fail to meet the obligations outlined in the Mortgage-Backed Securities (MBS) Guide and Guaranty Agreement(s), and to ensure that the MBS program requirements appropriately reflect the risk associated with certain Issuer profiles. In the event that an Issuer fails to meet its obligations, these recovery plans will play a vital role in Ginnie Mae’s ability to promptly and smoothly transfer servicing responsibilities. By proactively planning for potential distress or failure, we can minimize disruptions, stabilize the market, and protect the interests of investors and borrowers.

“Ginnie Mae takes a multi-faceted approach to risk management,” said Acting President Sam Valverde. “Our new recovery planning requirements are a key component to manage counterparty risk and support seamless guaranty operations.”

For more information regarding the transition to the new recovery planning requirements, see APM 24-08​.

If you have any questions regarding the policy changes in this announcement, please contact your account executive in the Office of Issuer and Portfolio Management or email askGinnieMae@hud.gov.

Additional information about Ginnie Mae is available at www.ginniemae.gov and on X (formerly Twitter), YouTube, Facebook, and LinkedIn.

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 U.S. Government.