Ginnie Mae Finalizes Requirements for Pooling Re-Performing Mortgage Loans

Ginnie Mae has revised the pooling requirements for re-performing loans with the publication of All Participants Memorandum (APM) 23-03. The APM announces a reduced seasoning period for re-performing loans and that Ginnie Mae will allow re-performing loans that meet those requirements to be pooled into the TBA Eligible Multi-Issuer Pools.

This comes after the previous Ginnie Mae announcement, that became effective February 1, 2023, where they shortened the re-pooling seasoning requirements for re-performing loans from six months to three months and allowing issuers the option to pool re-performing loans into TBA eligible Ginnie Mae II Multi-Issuer Pools.

“I am pleased that we have been able to deliver early on this policy change, which I announced late last year,” said Ginnie Mae President Alanna McCargo about February's decision. “The announcement demonstrates Ginnie Mae’s continued commitment to providing programs and options to Issuers that maintain the strength and liquidity of the government mortgage market,”

Per APM 23-03, the reduced seasoning requirements for re-performing loans are:

1. The borrower has made timely payments for the 3 months immediately preceding the issuance month associated with the mortgage-backed securities (MBS), and
2. The MBS issue date is at least 120 days from the last date the loan was delinquent.

Re-performing loans must also meet all other applicable pooling parameters. Since the inception of the C-RG pool-type in February 2021, approximately $39.5 billion of the securities have been issued through year end 2022.

Please consult the APM for more detailed information regarding this change.

To read the full release, including more information, click here.