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INVESTMENT GOVERNMENT PROPERTY PRESERVATION TECH
Journal
GINNIE MAE
TO BEGIN
ACCEPTING
DIGITAL
COLLATERAL
Ginnie Mae announced a major step in
modernizing its platform, allowing so-called
"digital collateral" or electronic promissory
notes and other loan files as collateral in its
securities.
Issuers may apply to participate in the early
phase of the Digital Collateral Program, and
approved e-Issuers will be able to securitize
government-backed mortgages with digital
collateral.
Each e-Issuer will be given eMortgage
Issuance Authority for a limited number
of eMortgage loans, regardless of loan size,
according to the announcement from Ginnie
Mae.
Interested parties may apply through
August 15.
"is announcement is a major step
for Ginnie Mae following two years of
collaboration with industry stakeholders to
develop the right set of policies that will lead
to the successful implementation of Digital
Collateral in the government-backed industry
segment," said Seth Appleton, Principal EVP
at Ginnie Mae.
"Moreover, this is an important milestone
that was recommended in the HUD 'Housing
Finance Reform Plan,'" he added.
e Housing Finance Reform Plan was
issued by HUD in September 2019 and
includes reforms to Ginnie Mae's securitization
platform and to the integrity of Ginnie Mae
securities.
"GNMA should develop and implement
the policies, technology, and operational
capabilities necessary to accept digital
promissory notes (eNotes) and other digitized
loan files as acceptable collateral for its
securities," states the reform plan.
Accepting digital collateral will "enable
issuers to enhance efficiency, risk management,
and customer experience," HUD stated in its
plan.
e plan also called for Ginnie Mae to
"strengthen its risk management analytics;"
"implement enforcement, recovery, and
resolution reforms to protect taxpayers;"
and "fully modernize platform access, data
standards, collection, and storage."
ere are no costs to participate in the
Digital Collateral Program, Ginnie Mae
said, and interested issuers must submit their
application to dcpa@hud.gov before August 15.
