New Requirements for Ginnie Mae Approval

On May 18, 2011, the Government National Mortgage Association (Ginnie Mae) updated Chapter 7, Application for Approval as A Ginnie Mae Issuer, in Ginnie Mae’s Mortgage-Backed Securities Guide 5500.Three, Rev. 1. On the identical date, Ginnie Mae revised Chapter 6 of the Handbook, Fees, which describes the prices the Issuer ought to pay beneath the MBS application. This article summarizes the current revisions to Ginnie Mae’s eligibility necessities and application approaches.

New Ginnie Mae Issuer Application Form

Institutions that desire to use to grow to be a Ginnie Mae Issuer are required to apply the new Form HUD-11701, Application for Approval – Ginnie Mae Mortgage-Backed Securities Issuer.

Institutions seeking to become FHA lenders digital asset custody need to use the brand new Form HUD 92001-A, FHA Lender Approval Application. The previous model of Form HUD-11701 dated November 2008, which changed into a joint utility form for applying for both Ginnie Mae or FHA approval, or both, will now not be available for a twin software.

Summarized under are the general necessities for application as a Ginnie Mae Issuer:

Background disclosures regarding any destructive incident for everyone who serves at the enterprise’s board of directors or is an authorized signatory.
Board of Resolutions of Board of Directors, Certificate of Authorized Signatures; resumes of other named individuals.
Annual economic statement for the remaining 3 monetary years, audited and licensed by means of an Independent Auditor (IA) meeting the requirements of the Audit Guide.
Insurance certificates, constancy bond, mortgagee E&O along side Ginnie Mae loss payee and other endorsements.
Written certification from an officer that the organization has in place a written high-quality control software for the underwriting, origination and servicing of loans in Ginnie Mae MBS swimming pools and mortgage applications and for secondary marketing.
Most recent first-class manipulate audit, together with the date of the audit, and should consist of a written announcement of the motion taken due to the findings.
A written statement of the dollar fee of loans to officers, directors or affiliates, or verify in writing if there are no loans of this kind.
A written statement of the dollar cost of pledged property, or verify in writing there are no pledged property.
A list of any affiliates which might be already participating inside the Ginnie Mae MBS Program as Issuers and their 4-digit Ginnie Mae Issuer identity wide variety, or verify in writing there aren’t any associates participating.
If any associate of the applicant is already taking part inside the Ginnie Mae MBS Program as an Issuer, a Cross-Default Agreement among the applicant and every such associate must be completed, pointing out the name and Ginnie Mae Issuer identification number of every affiliate that could be a birthday party to it.
A written statement of the call, address, phone quantity and make contact with person for each loan coverage enterprise, warehouse lender and investor with whom the applicant is currently doing enterprise.
Payment to Ginnie Mae, thru pay.Gov, of $2,500. This charge represents the Issuer utility price and is for overview and analysis. It is earned when paid and is non-refundable.
Before issuing securities beneath any Program, an Issuer have to additionally submit to Ginnie Mae’s PPA the subsequent additional files.