Ginnie Mae has issued an All Participant Memorandum (APM 21-07) that extends the use of certain features of its digital collateral program to paper mortgages, a move that should allow issuers to modify paper mortgages more efficiently.
Due to the huge impact of the pandemic, some features of Ginnie Mae’s digital guarantee program, namely the ability to use electronic signatures and adopt remote online notarizations (RON), were flexibilities adopted. for the benefit of all government issuers and borrowers. back-to-back mortgage segment. By issuing NPA 21-07, Ginnie Mae will authorize the use of electronic signatures and RON for loan modification agreements on âpaperâ mortgages. Ginnie Mae notes that the requirements for modifying eMortgages or eNotes will be addressed in a separate NPA.
âGinnie Mae is committed to providing issuers with the tools they need to enable qualified homeowners to modify their mortgages with as few obstacles as possible,â said Michael Drayne, interim executive vice president of Ginnie Mae. âTens of thousands of homeowners coming out of forbearance and other pandemic mortgage relief programs may use mortgage modifications to improve their financial situation, and we believe this policy change will help make the process smoother. fluid for owners and maintenance workers. “
As of now, all approved Ginnie Mae issuers are permitted to use electronic signatures when performing loan mod agreements, provided that:
- The promissory note is a paper promissory note with a wet signature;
- The electronically signed loan mod agreement complies with the registration requirements of the registration jurisdiction; and
- The eClosing platform that the Issuer uses to obtain and maintain the electronic signatures of borrowers on the loan modification agreement must support verification of the identity of the borrower and identify the symbol or process used as electronic signature by the borrower and the purpose of electronic signature.
Ginnie Mae recently announced that its Mortgage Backed Securities (MBS) issuance volume for October 2021 was $ 69.36 billion, down from issuance of approximately $ 73 billion. in September, reflecting the liquidity of the program and its value in meeting the mortgage needs of homebuyers and renters. owners. About 253,996 houses and apartments were financed by the MBS guaranteed by Ginnie Mae in October.