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How Do I Become a Ginnie Mae Issuer?

Issuers of Ginnie Mae mortgage-backed securities (MBS) make a significant contribution to the expansion of affordable housing opportunities in America. Applicants must therefore demonstrate that they have the organizational, financial, procedural, quality control, and other necessary characteristics that will qualify them to participate in the program.

The Ginnie Mae mortgage-backed securities guide is an invaluable resource when applying for issuer status. In it you will find discussions about eligibility requirements, issuer responsibilities, the application process as well as the applications themselves.

Eligibility requirements are the same for both the Ginnie Mae I and Ginnie Mae II MBS programs. One application qualifies applicants to issue securities under both programs, except those applying to issue only multifamily securities.

 

Eligibility Requirements

Ginnie Mae requires its issuers to meet certain criteria, as follows:

  • Issuers must be approved FHA mortgagees in good standing. A mortgagee approved only as an FHA loan correspondent is not eligible to be a Ginnie Mae issuer. Issuers may apply for FHA mortgagee approval and Ginnie Mae issuer status at the same time.
  • Issuers must possess demonstrated experience and management capacity in the underwriting, origination, and servicing of mortgage loans.
  • Issuers must have fidelity bond and a "mortgagee errors and omissions" policy in effect.
  • Issuers must have a quality control plan in place for underwriting, originating, and servicing mortgage loans as well as for secondary marketing.
  • For the single-family program, issuers must have a minimum net worth of $250,000. For the multifamily program, issuers must have a minimum net worth of $500,000.

 

Issuer Responsibilities

Issuer responsibilities include the following:

  • Acquiring or originating eligible mortgages and forming eligible pools or loan packages.
  • Establishing and maintaining proper P&I, escrow custodial, and other pertinent accounts, payments and funds. Chapter 16 (PDF) of the Ginnie Mae MBS Guide contains details about the various accounts.
  • Obtaining and working with an eligible document custodian. Chapter 13 (PDF) of the Ginnie Mae MBS Guide contains information about the documents that must be placed with a document custodian.
  • Marketing or holding the securities backed by the pool or loan package.
  • Servicing the mortgages in the pool or loan package or contracting with a service bureau to service them.
  • Administering the outstanding securities:
      bullet Ginnie Mae I MBS Program - For certificated securities, the issuer must make timely payment
      of all amounts due to security holders and the guaranty fee due to Ginnie Mae. For book-entry
      securities, the issuer must make funds available to the Central Payment and Transfer Agent
      central P&I account for all amounts due to the security holders and the guaranty fee due to
      Ginnie Mae.

      bullet Ginnie Mae II MBS Program - The issuer must make funds available to the Central Payment
      and Transfer Agent in the central P&I account for all amounts due to security holders and the
      guaranty fee due to Ginnie Mae.

    Under both programs, the issuer must use its own resources to cover shortfalls in amounts due to security holders or to Ginnie Mae resulting from insufficient collections on the mortgage collateral.
  • Submitting required monthly, quarterly, and other reports and certifications to Ginnie Mae. See Chapter 17 (PDF) of the Ginnie Mae MBS Guide for more information about the reports and certifications.

 

Maintaining Issuer Status

We require issuers to maintain the standards and requirements that allowed them to qualify for issuer status. In addition, issuers must:

  • Remain an approved FHA mortgagee in good standing.
  • Provide Ginnie Mae with annual and quarterly financial reports and related documents that confirm the ongoing financial soundness of the issuer's organization.
  • Every January 1, submit two original, executed copies of the Resolution of Board of Directors and Certificate of Authorized Signatures, form HUD 11702, to the Pool Processing Agent (PPA). Issuers can substitute a written certification in lieu of this form; the certification must state that no changes have occurred since the most recent HUD 11702. The most recently submitted copy of HUD 11702 should be included with the certification.
  • Within five business days after a change in the list of individuals authorized to sign documents on the issuer's behalf, submit two original, executed copies of form HUD 11702.
  • Notify Ginnie Mae of any changes in the issuer's business status and submit the appropriate documents and correspondence, reflecting any change to the issuer's name or address.
  • Not exceed delinquency thresholds.

Ginnie Mae reserves the right to require other, additional reports or documentation as needed.

 

The Application Process

All applicants will need to submit the documentation listed below. Please refer to Chapter 7 (PDF) of the Ginnie Mae MBS Guide for full details and descriptions of additional documentation that may be required.

  • HUD 11709 (PDF)
    Master Agreement for Servicer's Principal and Interest Custodial Account
  • HUD 11709-A (PDF)
    ACH Debit Authorization
  • HUD 11701/92001 (PDF)
    Application for Approval (FHA Lender and/or Ginnie Mae Mortgage-Backed Securities Issuer)
  • HUD 11702 (PDF)
    Two original, signed copies of a Resolution of the Board of Directors and Certificate of Authorized Signatures.
  • Two copies of your annual financial statement for each of the most recent three fiscal years, audited and certified by an independent auditor.
  • Standard insurance-industry-accepted certificates of insurance reflecting fidelity bond and mortgagee errors and omissions insurance coverage, along with Ginnie Mae loss payee and other required endorsements.
  • Written certification from an officer that the firm has a written quality control program for underwriting, origination, and servicing of loans in Ginnie Mae pools. Please also include a table of contents or written summary of the plan.
  • A copy of the most recent quality control audit, including the date of the audit.
  • A written statement of the dollar value of loans to officers, directors, or affiliates of your firm as of the date of the most recent audited balance sheet. If there are no such loans, submit a statement to that effect.
  • A written statement of the dollar value of pledged assets as of the date of the most recent audited balance sheet. If there are no pledged assets, confirm that fact in writing.
  • A list of affiliates, if any, already participating in the Ginnie Mae MBS Program as issuers and the four-digit Ginnie Mae issuer identification number of each. If there are no affiliates that already participate in the Ginnie Mae MBS Program as an issuer, submit a statement to that effect. An "affiliate" of an applicant, in these contexts, is an entity that can "exercise control or significant influence over the management or operating policies of the applicant, directly or indirectly, through some type of control or ownership."
  • A Cross-Default Agreement (PDF) for any affiliate already participating in the Ginnie Mae MBS Program as an issuer. State in each Cross-Default Agreement the name and Ginnie Mae issuer identification number of each affiliate that is a party to it.
  • A written statement of the name, addresses, telephone number, and contact person for each mortgage insurance company, warehouse lender, and investor with whom you currently do business.
  • A check payable to Ginnie Mae for the issuer application fee of $250. The fee is non-refundable.
 

For More Information:

For more information, please contact your Account Executive at Ginnie Mae's Office of Mortgage-Backed Securities

Mailing Address and Phone Numbers:

Ginnie Mae
Single-Family & Manufactured Housing Division
451 7th Street, SW, Room B-133
Washington, D.C. 20410-9000
Telephone number: (202) 708-1535
Fax number: (202) 708-4117

Ginnie Mae
Multifamily Division
451 7th Street, SW, Room B-133
Washington, D.C. 20410-9000
Telephone Number: (202) 708-2043
Fax Number: (202) 708-3019

Physical Location:

Potomac Center South
550 12th Street, SW, Third Floor
Washington, D.C. 20024

 
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