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CHAPTER 1. GENERAL FEATURES OF THE PROGRAM
PART 1. GENERAL FEATURES Effective Date: 2013-08-01
The Government National Mortgage Association (Ginnie Mae), through its Mortgage-Backed Securities (MBS) Programs, guarantees securities that are backed by pools of mortgages and issued by mortgage lenders (Issuers) approved by Ginnie Mae. Security holders receive a “passthrough” of the principal and interest payments on a pool of mortgages, less amounts required to cover servicing costs and Ginnie Mae guaranty fees. The Ginnie Mae guaranty ensures that the security holder receives the timely payment of scheduled monthly principal and any unscheduled recoveries of principal on the underlying mortgages, plus interest at the rate provided for in the securities. If a borrower fails to make a timely payment on a mortgage, the Issuer must use its own funds to ensure that the security holders receive timely payment. If an Issuer fails to ensure that the funds necessary to make timely payment are available or otherwise defaults in the discharge of its responsibilities, Ginnie Mae, in accordance with its guaranty, will make payments to security holders.
Ginnie Mae also guarantees Home Equity Conversion Mortgage (HECM) securities, hereinafter referred to as HMBS. HMBS are accrual coupon pass-through securities which perform differently than Ginnie Mae’s forward MBS pass-through securities. In addition to program requirements applicable to the forward MBS, HMBS Issuers must also meet special Program requirements found in MBS Guide, Ch. 35.
PART 2. THIS GUIDE Effective Date: 2013-08-01
Ginnie Mae has two MBS programs (the Programs): the Ginnie Mae I MBS Program for the issuance of securities backed by single family or multifamily loans and the Ginnie Mae II MBS Program for the issuance of securities backed by single family loans (MBS). In addition, the Ginnie Mae II MBS Program contains special provisions for the issuance of HMBS. This Guide describes, and provides instructions to, the participants in both Ginnie Mae MBS Programs. This Guide replaces the Ginnie Mae Mortgage-Backed Securities Guide 5500.3, issued November 1, 1999, which in turn replaced the Ginnie Mae Mortgage-Backed Securities Guide, Ginnie Mae 5500.1 (Ginnie Mae I MBS Guide) and the Ginnie Mae Mortgage-Backed Securities Guide, Handbook GNMA 5500.2 (Ginnie Mae II MBS Guide). Any requirement in a document created under a Ginnie Mae MBS Program (including any Guaranty Agreement or Contractual Agreement), which document is in effect on the effective date of this Guide, that would otherwise require compliance with the Ginnie Mae Mortgage-Backed Securities Guide 5500.3, the Ginnie Mae I MBS Guide or the Ginnie Mae II MBS Guide on or after the effective date of this Guide shall be deemed to require, instead, compliance with this Guide as it may be amended from time to time. For example, a provision in a Contractual Agreement in effect on the effective date of this Guide that requires compliance, “as it shall be amended from time to time” after the date of the Contractual Agreement shall be deemed to require compliance with this Guide.
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PART 3. GINNIE MAE I AND II MBS PROGRAMS
Section A. Unique Features of Each Program Effective Date: 2013-08-01
Although the Ginnie Mae I and Ginnie Mae II MBS Programs are identical in many ways, there are several respects in which the features are unique to that Program. The most important features are described briefly in the following table and in greater detail in this or subsequent chapters.
When a requirement or instruction in this Guide does not indicate that it is applicable only to one Program or the other, the reader may assume that the requirement or instruction applies to both Programs.
GINNIE MAE I MBS PROGRAM GINNIE MAE II MBS PROGRAM Except in the case of securities backed by manufactured home loans, all of the mortgages in a pool must bear the same interest rate.
The interest rates on the mortgages in a pool may vary.
Only single family mortgages may be pooled.
In addition to single family mortgages, one or more multifamily mortgages may be pooled.
Each pool must be formed by a single Issuer. Single Family Pools may be formed by a single Issuer or by multiple Issuers. HECM pools must be formed by a single Issuer.
All securities must bear a fixed rate of interest. Some securities may bear an adjustable rate of interest. The interest rate on both fixed rate and adjustable rate HMBS securities is the weighted average coupon of the interest rates on the underlying Participations.
An Issuer may make a separate payment for each pool directly to each security holder of certificated securities of that pool. For example, a security holder that owns certificated securities of three Ginnie Mae I MBS pools may receive three payments each month. Each Issuer makes available funds in its central P&I custodial account for ACH withdrawal by the depository, as security holder of all book-entry securities, equal to the principal and interest due on such securities.
A central paying and transfer agent (CPTA) collects payments from all Issuers and makes a single, consolidated pass-through payment to each MBS security holder each month. A security holder that owns securities of three Ginnie Mae II MBS pools would receive one payment each month. HMBS security holders shall receive payments under certain conditions which apply to accrual coupon pass-through securities.
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The depository collects payments by ACH from the For securities held in book-entry form, the CPTA will Issuer’s central P&I custodial account on the 15th collect payments by ACH debit from the Issuer for day of each month or, if the 15th day is not a GNMA II securities at or after 7:00 a.m. Eastern business day on the next business day. Security Time on the 20th day of each month or, the next holders paid by check must receive the check from business day if the 20th calendar day is not a the Issuer by the 15th day of each month. business day. For securities held in certificated form, the CPTA shall collect pass-through payments by ACH debit at or after 7:00 a.m. Eastern Time on the 19th calendar day of the month. If the 19th calendar day is not a business day, then the applicable date is the 20th calendar day. If the 20th calendar day also is not a business day, then the applicable date is the business day immediately preceding the 19th calendar day of the month.
With one type of securities, called “serial notes,” principal is paid consecutively on the securities.
“Serial notes” are not issued.
Principal on serial unit number 1 is paid in full before serial unit number 2 receives any principal, and so on.
Section B. Pool and Loan Package Types Effective Date: 2021-10-29
A Ginnie Mae pool is categorized based on whether it (1) must be formed by a single Issuer or
(2) may be formed by multiple Issuers. A Ginnie Mae I pool or a Ginnie Mae II “custom” pool must be originated and administered by a single Issuer. A Ginnie Mae II “multiple Issuer” pool may be originated and administered by more than one Issuer.
A Ginnie Mae pool is also categorized based on the type of mortgages that are pooled or, in one case, on the payment characteristics of the type of securities issued.
The different categories of Ginnie Mae pools and loan packages are shown in the following tables. These pool types are discussed in more detail in MBS Guide, Ch. 9 and 24 through 32 and in MBS Guide, Ch. 35.
Ginnie Mae I Pools:
POOL TYPE SUFFIX Single Family Level Payment Mortgages X SF
Buydown Mortgages X BD
Graduated Payment Mortgages X GP or GT
Growing Equity Mortgages X GA or GD
Serial Notes (backed by Single Family, Level Payment Mortgages)
X SN
Project Loans X PL, PN, LM, LS or RX
Construction Loans X CL or CS
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Ginnie Mae II Pools and Loan Packages
POOL TYPE SUFFIX Single Family Level Payment Mortgages Custom pool C SF Custom Re-Performing pool C RG Custom Extended Term pool C ET Custom Buydown Mortgages C BD Multiple-Issuer pool – Each loan package M SF Multiple Issuer pool – Each loan package M FS Multiple Issuer pool – Each loan package which contains certain high balance loans originated pursuant to the Economic Stimulus Act of 2008
M JM
Adjustable Rate Mortgages: Custom Pool Suffix Options: Constant Maturity Treasury (CMT) Custom pool – 1-Yr ARM C AR Custom pool – 3-Yr ARM C AT Custom pool – 5-Yr ARM C AF or C FT Custom pool – 7-Yr ARM C AS Custom pool – 10-Yr ARM C AX Adjustable Rate Mortgages: Custom Pool Suffix Options: London Interbank Offered Rate (LIBOR) Custom pool – 1-Yr ARM C RL Custom pool – 3-Yr ARM C TL Custom pool – 5-Yr ARM C FL or C FB Custom pool – 7-Yr ARM C SL Custom pool – 10-Yr ARM C XL Adjustable Rate Mortgages: Multiple Issuer Pool Suffix Options: Constant Maturity Treasury (CMT) Multiple Issuer pool – 1-Yr ARM - Each loan package M AR or M AQ Multiple Issuer pool – 3-Yr hybrid ARM - Each loan package M AT Multiple Issuer pool – 5-Yr hybrid ARM - Each loan package M AF or M FT Multiple Issuer pool – 7-Yr hybrid ARM - Each loan package M AS Multiple Issuer pool –10-Yr hybrid ARM - Each loan package M AX Adjustable Rate Mortgages: Multiple Issuer Pool Suffix Options: London Interbank Offered Rate (LIBOR)
Multiple Issuer pool – 1-Yr ARM - Each loan package M RL Multiple Issuer pool – 3-Yr hybrid ARM - Each loan package M TL Multiple Issuer pool – 5-Yr hybrid ARM - Each loan package M FL or M FB Multiple Issuer pool – 7-Yr hybrid ARM - Each loan package M SL Multiple Issuer pool –10-Yr hybrid ARM - Each loan package M XL Graduated Payment Mortgages Custom pool C GP or GT Multiple Issuer pool - Each loan package M GP or GT Growing Equity Mortgages Custom pool C GA or GD Multiple Issuer pool - Each loan package M GA or GD Manufactured Home Loans Custom pool C MH Home Equity Conversion Mortgage Loans (HECM) Custom Pool – Fixed Rate H RF Custom pool – 1-YR ARM, CMT Index H RA
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Custom pool – Monthly Adjustable ARM, CMT Index H RM Custom pool – 1-Yr ARM, LIBOR Index H AL Custom pool – Monthly Adjustable ARM, LIBOR Index H ML
PART 4. WORLD WIDE WEB SITE Effective Date: 2013-08-01
Ginnie Mae maintains a web site at “http://www.ginniemae.gov/”. Users can find this Guide and accompanying Appendices on the web site, as well as All Participants Memoranda (“APM”) issued by Ginnie Mae. From time to time, these memoranda will contain important policy changes (amendments) to the Ginnie Mae Guide. The Ginnie Mae web site also contains a broad range of other information, including descriptions of Ginnie Mae programs, guidance for Issuers, investor news, and financial reports.
PART 5. PROGRAM AUTHORITY Effective Date: 2013-08-01
Ginnie Mae is a wholly-owned corporate instrumentality of the United States and is located within the Department of Housing and Urban Development. Its powers are prescribed generally by Title III of the National Housing Act, as amended, Pub. L. 73-479, codified at 12 U.S.C. 1716 et seq.
Ginnie Mae is authorized by section 306(g) of the National Housing Act to guarantee the timely payment of principal and interest on securities that are based on and backed by trusts or pools composed of mortgages that are insured or guaranteed by the Federal Housing Administration (FHA), the Department of Agriculture under the Rural Development (RD) program, the Department of Veterans Affairs (VA), or guaranteed by the Secretary of Housing and Urban Development under section 184 of the Housing and Community Development Act of 1992 and administered by the Office of Public and Indian Housing (PIH). Ginnie Mae’s guaranty of MBS is backed by the full faith and credit of the United States.
Ginnie Mae is authorized to conduct its business in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and possessions of the United States. The MBS functions of Ginnie Mae are carried out principally through its office located at 451 Seventh Street, S.W., Washington, D.C. 20410. Inquiries concerning MBS should be directed to the Office of Issuer & Portfolio Management, at that address (see the document entitled “Addresses” (Addresses), which is found following the Glossary), or as otherwise directed throughout this Guide.
PART 6. GINNIE MAE’S GUARANTY Effective Date: 2013-08-01
Ginnie Mae’s guaranty, which is applicable with respect to all Ginnie Mae MBS and HMBS, is included in the terms of each uncertificated Ginnie Mae MBS and appears on the face of each certificated Ginnie Mae MBS as follows:
GUARANTY:
The undersigned, pursuant to Section 306(g) of the National Housing Act, hereby guarantees to the registered holder thereof the timely payment of principal and interest set forth in the above instrument, subject only to the terms and conditions thereof. The full faith and credit of the United
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States is pledged to the payment of all amounts which may be required to be paid under this guaranty.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
By:
_______________________________________
PART 7. THE SECURITIES Effective Date: 2013-08-01
Each MBS guaranteed by Ginnie Mae provides for the timely payment to the security holder, whether or not those funds have been collected by the Issuer, of scheduled principal installments due on the pooled mortgages as well as prepayments or other unscheduled recoveries of principal due or received on the mortgages. Each security also provides for payment to the security holder of interest on the unpaid principal balance of the security at the prescribed rate on the security.
In the case of delinquent mortgages, the Issuer is required to make advances from its own funds, if necessary, in order to ensure that required interest and principal are paid to security holders.
Ginnie Mae MBS, other than serial notes, are issued in minimum denominations of $1,000 and multiples of $1 in excess of $1,000. Serial notes, which are issued only under the Ginnie Mae I MBS Program, are issued in denominations divisible by $25,000, except that one unit in each issue may be issued in a denomination greater than $25,000 but less than $50,000.
Ginnie Mae I MBS mature on the 15th day of the month in which the mortgage with the latest maturity in the related pool matures.
Ginnie Mae II MBS mature on the 20th day of the month in which the mortgage with the latest maturity in the related pool matures.
PART 8. GINNIE MAE POLICY DETERMINATIONS AND WAIVER AUTHORITY Effective Date: 2013-08-01
Ginnie Mae policy determinations are binding on Ginnie Mae only if they are in writing and signed by an authorized official of Ginnie Mae.
Ginnie Mae reserves the right, consistent with law, regulation, or the provisions of the applicable Guaranty Agreement, to alter or waive any of the requirements contained in this Guide and to institute other requirements that it deems appropriate.
No attempted alteration or waiver of the requirements in this Guide is binding on Ginnie Mae unless it is made in writing by an authorized official of Ginnie Mae to the requesting party. No contractor acting on behalf of Ginnie Mae is authorized to grant an alteration or waiver.
PART 9. EFFECTIVE DATE OF GUIDE Effective Date: 2013-08-01
The effective date of this Guide is July 1, 2003. All securities with an issue date on or after the effective date, and all related participants, pools and loan packages, will be governed by the
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standards contained herein. The effective date of any subsequent amendment will be indicated in an All Participants Memorandum (APM) and, unless stated otherwise in the All Participants Memorandum, by the date at the bottom of the amended page.
This Guide may also apply with respect to securities with issue dates prior to July 1, 2003, and all related participants, pools and loan packages. For example, when an Issuer issues securities with an issue date later than the effective date of this Guide, the Issuer agrees that it and all of its previously issued pools and loan packages, whenever issued and whether issued under the Ginnie Mae I MBS Program or the Ginnie Mae II MBS Program, will be governed by this Guide.
An Issuer whose most recent issuance of Ginnie Mae MBS securities consisted of Ginnie Mae II MBS securities with an issue date prior to November 1, 1999, will have issued the Ginnie Mae II MBS securities pursuant to a Contractual Agreement, which incorporates by reference the requirements of the former Ginnie Mae II Mortgage-Backed Securities Guide for the Ginnie Mae II Program, as it is amended from to time. With respect to such an issuance, a reference in this Guide or any Appendix to the applicable “Guaranty Agreement” shall, unless the context otherwise requires, be deemed to be a reference to the applicable “Contractual Agreement” as long as the Contractual Agreement remains in effect. Any Contractual Agreement addressed in this paragraph will remain in effect until the first time the Issuer issues Ginnie Mae MBS with an issue date that is after the effective date of this Guide. At that time, each such Contractual Agreement affecting the Issuer’s outstanding pools and loan packages will be null and void, and each such outstanding pool and loan package will thereafter be governed by a Guaranty Agreement, in the form then set forth in this Guide, between the Issuer and Ginnie Mae.
PART 10. MBS PROGRAM PARTICIPANTS
This section briefly outlines the roles of the participants in the Ginnie Mae MBS Programs.
Section A. Ginnie Mae Effective Date: 2013-08-01
Ginnie Mae guarantees securities backed by pools or by one or more loan packages of mortgages. Subject to Ginnie Mae’s sole discretion, it reviews applications from lenders and grants Issuer status, provides approved Issuers with commitment authority, approves issuances of securities, and monitors Issuers once they are approved to issue securities. Except for Ginnie Mae’s guaranty to security holders and otherwise as expressly provided in the Guaranty Agreements or herein, Ginnie Mae assumes no duty or liability to any person or entity.
Section B. Issuer Effective Date: 2022-06-17
The Issuer creates pools of mortgages, loan packages of mortgages or pools of Participations related to HECMs that it has originated or acquired. It prepares and submits documents for each pooled loan, or, for HMBS, each pooled Participation, to the document custodian and documents describing the pool or loan package as a whole to the Pool Processing Agent (“PPA”). The Issuer markets securities guaranteed by Ginnie Mae that are collateralized by these pools or loan packages. It administers the securities, providing the funds required for monthly payments to be made to security holders and reporting to Ginnie Mae. The Issuer is obligated to cover from its own funds any shortfalls in collections on the pooled mortgages and Participations in order to ensure that all required payments due to security holders are made.
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The Issuer is responsible for servicing the pooled mortgages and Participations until maturity or termination. The eligibility requirements for lenders to become approved Ginnie Mae Issuers are described in MBS Guide, Ch. 2, the requirements for lenders to maintain Issuer status are described in MBS Guide, Ch. 3, their responsibilities are described in MBS Guide, Ch. 4, and the procedure that an applicant must use to apply for Issuer status is described in MBS Guide, Ch. 7.
Authority for pooling mortgages backed by electronic notes (eNotes) is a separate approval open to single family Issuers. The eIssuer eligibility requirements, and application procedures are described in the Digital Collateral Guide, Appendix V-07 to this Guide.
Section C. Funds Custodian Effective Date: 2013-08-01
The funds custodian is a financial institution that maintains pool or loan package principal and interest (P&I) custodial accounts and required escrow custodial accounts.
A funds custodian also maintains for an Issuer a central P&I custodial account for each or both Ginnie Mae MBS Programs. Each central P&I custodial account may also serve as a pool or loan package P&I custodial account. The depository, as security holder of all book-entry Ginnie Mae I MBS, debits this account each month in an amount equal to the principal and interest due on all such securities backed by pools or loan packages for which the Issuer has Issuer responsibilities. The CPTA debits this account each month in an amount necessary to pay required installments of interest and principal to all holders of Ginnie Mae II MBS backed by pools or loan packages for which the Issuer has Issuer responsibility. In order to serve in this role the funds custodian must be a member of, or a correspondent of a member of, an Automated Clearing House (ACH).
Eligibility requirements for funds custodial institutions and requirements for central pool or loan package P&I, T&I, and escrow custodial accounts are described in MBS Guide, Ch. 16.
Section D. Document Custodian Effective Date: 2013-08-01
The document custodian reviews the loan documents submitted by the Issuer for each pool or loan package and certifies to Ginnie Mae that they accurately represent the pooled mortgages in accordance with Ginnie Mae requirements. The document custodian also holds the loan documents in safekeeping for the life of the pool or loan package. The document custodian’s functions are described in MBS Guide, Ch. 13.
Section E. Pool Processing Agent Effective Date: 2013-08-01
The Pool Processing Agent (PPA) reviews and approves, on Ginnie Mae’s behalf, the physical documents and/or electronic transmissions submitted by the Issuer that describe the pool or loan package as a whole. Upon approving the pool or loan package, the PPA directs that the securities be issued. The PPA also tracks the certification status of pools and loan packages. The PPA’s responsibilities for pool and loan package processing are described in MBS Guide, Ch. 10, 11, 12, 13, 21, 22 and 24 through 32.
The PPA is also responsible for preparing a prospectus in connection with certain pools. These responsibilities are described in MBS Guide, Ch. 10, 12, 24 through 30 and 35.
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Section F. Central Paying and Transfer Agent Effective Date: 2013-08-01
The CPTA acts both as a collection agent and as a transfer agent under both Ginnie Mae I & II MBS Programs.
Collection agent
(a) Under the Ginnie Mae I MBS Program, the CPTA acts as collection agent in
connection with the Ginnie Mae guaranty fee, automatically debiting each Issuer’s central P&I custodial account in the amount necessary to pay Ginnie Mae its guaranty fee and paying that amount to Ginnie Mae.
(b) Under the Ginnie Mae II MBS Program, the CPTA acts as both collection agent and
paying agent in connection with monthly payments to security holders and to Ginnie Mae. The CPTA (1) automatically debits each Issuer’s central P&I custodial account monthly in the amounts necessary to pay security holders and to pay Ginnie Mae its guaranty fee, (2) pays those amounts to security holders and to Ginnie Mae, and (3) prepares and sends a remittance advice to security holders with their payments.
(c) The CPTA also acts as collection agent in other respects under both Ginnie Mae
MBS Programs, collecting information regarding remaining principal balances and guaranty fees each month.
(d) Collection and payment agent activities are described in MBS Guide, Ch. 6, 14, 15,
16, 19, and 20.
Transfer agent
(a) The CPTA also acts as transfer agent for both Ginnie Mae MBS Programs. In this
capacity, the CPTA prepares all Ginnie Mae MBS and delivers them to security holders. The CPTA registers a new issuance of securities in the name of the depository and issues the securities in uncertificated form through the depository’s book-entry system. As transfer agent, the CPTA also handles exchanges of securities at the request of security holders and certain transfers of securities from one security holder to another. The CPTA also deals with missing or damaged certificates and maintains a central registry of securities ownership and transfer information for all pools. The transfer agent’s responsibilities are described in MBS Guide, Ch. 12, 20, and 22.
Section G. Depository Effective Date: 2013-08-01
Ginnie Mae guaranteed MBS are issued initially through the book-entry system maintained by the depository. Information about the depository and the book-entry system can be found in MBS Guide, Ch. 12.
PART 11. SUMMARY OF PROCEDURES
This section summarizes the process for Issuer approval, securities issuance, and securities administration.
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Section A. Issuer Approval and Commitment Authority Effective Date: 2013-08-01
The mortgage lender applies to Ginnie Mae for approval to become an Issuer of Ginnie Mae guaranteed MBS and/or HMBS. (Please See MBS Guide Chapters 2, 7, and 35). Additional requirements that are applicable to HMBS Issuers can be found in MBS Guide, Ch. 35.
Once approved to issue Ginnie Mae guaranteed MBS and/or HMBS, an Issuer must apply to Ginnie Mae for commitment authority, which commits Ginnie Mae to guarantee the securities to be issued, and for pool and loan package numbers. (Please See MBS Guide Chapter 8)
Commitment authority allows an Issuer to issue a specified maximum dollar amount of Ginnie Mae guaranteed MBS or HMBS in fixed amounts, in either Ginnie Mae MBS Program and in the various pool types for which it is eligible.
Section B. Pool and Loan Package Submission and Securities Issuance Effective Date: 2013-08-01
After obtaining the commitment authority from Ginnie Mae, the Issuer assembles a pool or loan package of FHA, VA, RD or § 184 loans that it has originated or acquired. (Please See MBS Guide Chapters 9, 24 through 32, and 35)
Before securities backed by the pool or loan package can be created, the Issuer must:
(a) for all Ginnie Mae pools and loan packages, arrange for an eligible document
custodian, which is required (i) to review the pool or loan package loan documents and certify to Ginnie Mae that they accurately represent the mortgages placed in the document custodian’s control and (ii) to maintain control of the documents over the life of the pool or loan package; (Please See MBS Guide Chapter 13) and
(b) for all Ginnie Mae pools and loan packages, establish with a funds custodian
separate custodial accounts to hold P&I funds and escrow funds for pools or loan packages; (Please See MBS Guide Chapter 16)
(c) for Ginnie Mae I pools, establish a central P&I custodial account with a funds
custodian that provides ACH facilities (which may be the central P&I custodial account described in (d) below) from which the depository, as security holder of all book-entry Ginnie Mae I MBS, can debit monthly payments of principal and interest due on such securities and the CPTA can debit monthly amounts required to pay the Ginnie Mae guaranty fee; and
(d) for Ginnie Mae II pools and loan packages, establish with a funds custodian that
provides ACH facilities a central P&I custodial account from which the CPTA can debit monthly amounts required to pay security holders and the Ginnie Mae guaranty fee.
The Issuer sends the required loan and pool or loan package documents to the document custodian. (Please See MBS Guide Chapters 10, 11, and 13)
The document custodian reviews the documents and certifies to Ginnie Mae that the pool or loan package is comprised of the loans listed on an accompanying schedule.
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The document custodian retains the loan documents. (Please See MBS Guide Chapters 11 and 13)
The pool or loan package documents are forwarded to the PPA, which reviews them and, on Ginnie Mae’s behalf, instructs the CPTA to issue the related securities. (Please See MBS Guide Chapter 10)
For all pool types, the CPTA registers securities in the total amount backed by the pool in the name of the depository and issues the securities in book-entry form. (Please See MBS Guide Chapter 12)
The Issuer has the option of retaining the Issuer responsibility for the pool or loan package or, with Ginnie Mae’s approval, transferring Issuer responsibility, immediately upon issuance of the securities, to another Ginnie Mae Issuer. HMBS securities will not be eligible for immediate pool transfers upon issuance (PIIT). (Please See MBS Guide Chapter 10)
Section C. Pool, Loan Package and Securities Administration Effective Date: 2013-08-01
For the life of the pool or loan package, the Issuer is responsible for servicing the mortgages, administering the securities, and submitting periodic reports to Ginnie Mae, as follows:
The Issuer is responsible for servicing the pooled mortgages in accordance with FHA, VA, RD and PIH guidelines, Ginnie Mae’s requirements and practices generally accepted in the mortgage lending industry. Accounts and records relating to the pooled mortgages must be maintained according to sound accounting practices in a manner that permits Ginnie Mae’s representatives to examine and audit them with or without prior notice. (Please See MBS Guide Chapters 14 through 20)
The Issuer collects the mortgagors’ monthly principal, interest, and escrow payments and all other payments and recoveries with respect to the pooled mortgages and deposits them into its P&I and escrow custodial accounts for the pool or loan package.
(a) Ginnie Mae I MBS Program
For certificated securities, the Issuer makes all required payments to security holders so that the security holders receive, by the 15th of each month, payment of principal and interest to which they are entitled. For book-entry securities, the Issuer deposits sufficient funds in the central P&I custodial account (which may be the central P&I custodial account described in the next paragraph) by the 15th day of each month (or, if such day is not a business day, the next business day) to enable the depository, as security holder for all book-entry Ginnie Mae I MBS, to ACH the principal and interest payments due on the securities.
Under the Ginnie Mae I MBS Program, in case of shortfalls in collections on the mortgage loans, the Issuer must supply from its own funds amounts necessary to pay the security holders the amounts to which they are entitled on a timely basis. (Please See MBS Guide Chapter 15)
(b) Ginnie Mae II MBS Program
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Each month, the CPTA automatically debits the Issuer’s central P&I custodial account on the day the Issuer’s deposit is made, in accordance with MBS Guide, Ch.15, Part 3, § A, through an ACH transaction in the amount needed to pay MBS security holders and Ginnie Mae. The CPTA will pay each security holder of certificated Ginnie Mae II MBS each month with a single check in an amount that represents all of the payments to which the security holder is entitled, by virtue of its ownership of Ginnie Mae II MBS, and will pay to the depository, as security holder of all book-entry Ginnie Mae II MBS, an amount that represents principal and interest payments due on the securities. HMBS payments to investors are triggered by certain events described in MBS Guide, Ch. 35. The CPTA will make required payments by the 20th calendar day of the month (or, in the case of payment to the depository, if the 20th day is not a business day, the next business day). (Please See MBS Guide Chapter 15)
Under the Ginnie Mae II MBS Program, in case of shortfalls in collections on the mortgage loans, the Issuer must supply from its own funds amounts necessary to pay the security holders the amounts to which they are entitled on a timely basis. (Please See MBS Guide Chapter 15)
(c) Guaranty Fee
Under the Ginnie Mae II MBS Program, the Issuer deposits in the central P&I custodial account (which may be the same central P&I custodial account for both programs or separate accounts) by the 19th of each month an amount in “same day funds” that will enable the CPTA to pay Ginnie Mae’s guaranty fee. If the 19th day is not a business day, the Issuer will make the deposit on the 20th day or if it also is not a business day, on the business day preceding the 19th day.
Under the Ginnie Mae I MBS Program, the Issuer deposits in the central P&I custodial account (which may be the same central P&I custodial account for both programs or separate accounts) by the 10th of each month an amount in “same day funds” that will enable the CPTA to pay Ginnie Mae’s guaranty fee. If the 10th day is not a business day, then the Issuer will make the deposit on the next business day.
Each month the Issuer submits an accounting report for each pool or loan package to Ginnie Mae. (Please See MBS Guide Chapter 17)
Each month the Issuer reports the aggregate remaining principal balance for each pool or loan package, as of the end of the preceding month, to Ginnie Mae. This is the basis for the calculation of the monthly payment due to the security holder. (Please See MBS Guide Chapter 19)
Under the Ginnie Mae I MBS Program, the Issuer maintains a security holders’ register for each of its pools. Under the Ginnie Mae II MBS Program, the CPTA performs this function.
Under both Ginnie Mae MBS Programs, the Issuer reports to the CPTA requests for the exchange or transfer of securities and claims due to missing or damaged certificates. (Please See MBS Guide Chapter 12)
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The CPTA issues and transfers Ginnie Mae MBS and HMBS according to instructions received from the Issuer, security holders or securities dealers, maintains a central registry of all outstanding Ginnie Mae pools and loan packages, and deals with claims due to missing or damaged certificates. (Please See MBS Guide Chapter 12)
The Issuer may effect one or more of the following transfers: transfer custodial accounts; transfer document custodian responsibilities; transfer subcontract servicing responsibilities and transfers of Issuer responsibility. (Please See MBS Guide Chapters 13, 16 and 21)
PART 12. ELECTRONIC SIGNATURE, SUBMISSION, AND RETENTION
Section A. Scope and Authorized Forms Effective Date: 2026-09-22
Applicability:
This Part applies to the forms, appendices, and other documents that program participants execute and submit to Ginnie Mae under the MBS Guide. It does not modify the requirements for mortgage notes, allonges, assignments, or other loan collateral documents, including the requirements for facsimile signatures, which remain governed by the applicable provisions of the MBS Guide and the Document Custody Manual. It also does not modify the requirements for documents governed by the Digital Collateral Program (Appendix V-07), including applications to participate in that program. Ginnie Mae, in its sole discretion, shall be the final arbiter of whether the submission meets the requirements of the MBS Guide.
Forms Authorized for Electronic Execution and Submission:
The following forms and documents are authorized to be executed electronically under Chapter 1, Part 12, Section B and submitted and retained electronically in accordance with Chapter 1, Part 12, Section C:
FORM TITLE
HUD 11711A Release of Security Interest
A document not included on this list may not be executed electronically under Chapter 1, Part 12, Section B or submitted electronically under Chapter 1, Part 12, Section C, except as provided in provision (3). For any such document, an original, executed original, or original signature means the physical wet-ink version.
(3) In-System Submissions Not Affected
The list in provision (2) addresses only documents executed by electronic signature under Section B. It does not address, and nothing in Chapter 1, Part 12 modifies or supersedes, the procedures under which certain forms are completed
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and submitted through Ginnie Mae systems using authenticated user credentials, where authorized by Ginnie Mae. These forms remain valid when submitted in accordance with applicable instructions. Chapter 1, Part 12 likewise does not affect procedures under which a form executed with a wet-ink signature is scanned and uploaded to a Ginnie Mae system in accordance with the applicable instructions; in such cases the physical document remains the Executed Original and must be delivered and retained as the applicable instructions require.
Section B. Electronic Signatures Effective Date: 2026-09-22
Ginnie Mae permits the use of electronic signatures on forms and appendices identified in Chapter 1, Part 12, Section A(2). For those forms, unless otherwise stated, program participants may elect to execute and submit forms either with a wet-ink signature delivered in physical form or with an electronic signature delivered electronically. A digital image of a handwritten signature (such as a scanned or photographed copy of a wet-ink signature) is not an electronic signature for any submission required by Ginnie Mae. For forms and appendices requiring multiple signatures, there must be no mixture of signature methods (i.e., electronic signatures and wet-ink signatures cannot be applied to the same document). Program participants electing to execute a form electronically must do so through an electronic signing process meeting the requirements below.
Ginnie Mae allows the use of electronic signatures consistent with the Electronic Signatures in Global and National Commerce Act (ESIGN Act) (15 U.S.C. § 7001 et seq., effective October 1, 2000), as amended.
Ginnie Mae requirements for Electronic Signatures:
(a) Compliance with applicable law: The electronic signature must comply
with applicable federal and state law, including the ESIGN Act.
(b) Intent to sign: The signing process must capture the signer's affirmative intent to
sign the document, for example through a "click to sign" action, an affirmative checkbox, or an equivalent mechanism that requires deliberate action by the signer.
(c) Association with the record: The electronic signature must be logically associated
with the document being signed, and the signer must have had the opportunity to review the document before signing.
(d) Identification of the signer: The electronic signing process must produce the signer's
legal first and last name and title, in an identifiable manner on the executed document.
(e) Signature audit trail: The electronic signing process must generate a signature audit
trail. It must show, at minimum, the first and last name of signer, the date and time each electronic signature was applied, and verification that the document has not been altered after execution. The signature audit trail must be appended to the
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executed form so that the form and signature audit trail are delivered, submitted, and retained as a single file. Electronic signatures that fail to meet this requirement will not be accepted.
(f) Excluded forms of signature: The electronic signature must not consist exclusively
of an audio recording, video recording, or biometric data.
(g) Accessibility requirements: Program participants shall ensure that the electronic
signature process, including document viewing, field navigation, and post-signature generated artifacts, adheres to Revised Section 508 Standards (36 CFR Part 1194) and meet Web Content Accessibility Guidelines (WCAG) 2.1 Level AA success criteria.
(h) Program participant responsibility: Program participants are responsible for ensuring
that any electronic signature applied to a form, and the electronic signing process used complies with the requirements of this Section and any relevant sections of the MBS Guide, including accompanying forms and appendices.
Section C. Electronic Submission and Retention Effective Date: 2026-09-22
Ginnie Mae requirements for the submission of electronic signatures:
(a) Method of submission: Forms and appendices executed electronically
under Chapter 1, Part 12, Section B, or as otherwise required by the MBS Guide, must be submitted as specified in the MBS Guide (e.g., via MAMS, GMEP, GinnieNET, or MyGinnieMae).
(b) Receipt and readability: Forms and appendices electronically executed must be in a
format that can be reliably opened, viewed, and stored by the receiving party.
(c) Sensitive information: When a form submitted under Chapter 1, Part
12 contains account numbers or other sensitive business information, the submission method must safeguard that information in transit. Submission through a Ginnie Mae-managed system (e.g., MAMS) satisfies this requirement. Program participants must not transmit forms containing sensitive information by unencrypted email or other unsecured means.
Ginnie Mae requirements for the retention of documents executed electronically:
(a) Retention period: Electronically signed and electronically delivered forms are subject
to the same retention requirements as physical versions of those forms. Retention requirements applicable to specific forms and document types are set forth in the MBS Guide, including but not limited to:
MBS Guide, Chapter 13, Part 8: Document Retention and Security Requirements
MBS Guide, Chapter 17, Part 2: General Account and Record Maintenance Requirement; and
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Document Custody Manual, Chapter 7: Operational Procedures, including the inventory accounting requirements governing the Issuer Master File and Pool Master File.
(b) Reproducibility: The party responsible for retention must be able to reproduce the
executed form, in a legible format, upon request by Ginnie Mae or its designee.
(c) Security of stored records: Program participants must store electronically retained
forms in a manner that prevents unauthorized access and alteration. Document Custodians remain subject to the storage, physical security, and cybersecurity requirements set forth in Document Custody Manual Chapter 7 in addition to other applicable requirements. Other program participants should comply with industry- standard practices for the secure storage of electronic business records.
(d) Program Participant Responsibilities: Program participants are responsible
for ensuring that the electronic submission, transmission, and retention of any form executed under Chapter 1, Part 12, Section B complies with the requirements of this Section.
Section D. Definitions Effective Date: 2026-09-22
For purposes of the MBS Guide:
Original Signature: A marking that depicts or represents a person's name and that is affixed to, or logically associated with, a document to evidence the signer's identity, intent to sign, and adoption or approval of the document's contents. An Original Signature may be either a wet-ink signature applied to a physical document or an electronic signature applied through a process that meets the requirements of Chapter 1, Part 12, Section B of the MBS Guide. Ginnie Mae, in its sole discretion, shall be the final arbiter of whether the submission meets this definition of the MBS Guide.
Electronic Record: An electronic version of a document produced, executed, submitted, and retained through a process that meets the requirements of Chapter 1, Part 12, for a document that Ginnie Mae has authorized to be executed electronically. An Electronic Record retains the signature audit trail associated with its execution. Ginnie Mae, in its sole discretion, shall be the final arbiter of whether the submission meets this definition of the MBS Guide.
Executed Original: The complete and final version of a document that bears the Original Signature of each party required to sign it, using the selected process of either wet-ink or electronic signature as defined in the Ginnie Mae MBS Guide, and that constitutes the enforceable version of that document. An Executed Original in hard copy is the document bearing wet-ink Original Signatures and any other required signatory elements, such as an affixed corporate seal. An Executed Original may exist in electronic form only for a document Ginnie Mae has authorized for electronic execution; in that case, it is the Electronic Record of the fully executed document. Ginnie Mae, in its sole discretion, shall be the final arbiter of whether the submission meets this definition of the MBS Guide..
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Original: The authentic, complete, and unaltered version of a document. In hard copy there is a single Original that is not a copy, facsimile or other reproduction of it. In electronic form, for a document that Ginnie Mae has authorized to be executed electronically, there is no single original in the physical sense, because an Electronic Record can be reproduced identically; any Electronic Record that accurately and completely reflects the document is equally an Original. Where a document is required to be signed, its Original is an Executed Original. Ginnie Mae, in its sole discretion, shall be the final arbiter of whether the submission meets this definition of the MBS Guide.