Ginnie Mae has announced the collection and incorporation of additional loan-level data elements in the Reporting and Feedback System (RFS) investor reporting process in All Participants Memorandum (APM) 23-05.
The data elements provide additional information about the risk of collateral for Ginnie Mae mortgage-backed securities (MBS). This collection includes changes to loan Removal Reason Code definitions and the addition of Removal Reason Code 7: Special Assistance. These changes apply to single-family, multifamily, and manufactured housing MBS.
Ginnie Mae anticipates a staged implementation and is targeting a full implementation by the second calendar quarter 2024.
“Our changes to the RFS will increase transparency for our global investors by enhancing data flow with our Issuers,” said Sam I. Valverde, Ginnie Mae Principal EVP. “We look forward to coordinating with Issuers, service bureaus and other participants and providers throughout the testing period to further define specific testing roles, requirements and schedules.”
To allow adequate time for Issuers, service bureaus and technology partners, Ginnie Mae has established a window for testing that will commence the third calendar quarter 2023 and continue through the first calendar quarter 2024.
Issuers who use proprietary “in house” monthly reporting software, or a custom configuration of a service bureau’s monthly reporting file are required to successfully complete test file submissions prior to implementation. Additionally, service bureaus or other providers of monthly reporting software are required to successfully complete test file submissions. Issuers who utilize service bureaus or other providers of monthly reporting software are not required to test those files themselves. Issuers who desire to test regardless of other considerations will be accommodated.
Ginnie Mae will coordinate with Issuers, service bureaus, sub-servicers, and other participants/providers to further define specific testing roles, requirements, and schedules. Because of the number of organizations and variables involved, and after consultation with Issuers and technology providers, further information about Issuer testing requirements, schedules, processes, and procedures will be provided via an APM at a later date.
Ginnie Mae recently announced that its MBS portfolio outstanding grew to $2.389 trillion in April 2023, including $33 billion of total MBS issuance, leading to $16 billion of net growth. Issuance for this month was higher than March’s $28 billion, and significantly higher than February’s $24 billion. April’s new MBS issuance supports the financing of more than 112,000 households, including more than 50,700 first-time homebuyers. Approximately 72% of the April MBS issuance reflects new mortgages that support home purchases, as refi activity remained low due to higher mortgage rates.
For the 2023 calendar year to date, Ginnie Mae supported the pooling and securitization of more than 177,000 first-time homebuyer loans.