Ginnie Mae is exploring the possibility of commingling paper and electronic promissory notes in securitized mortgage pools it insures, something issuers have been
“I think we’re going to see that first leg of being able to offer commingling come into place,” said Lynne Chandler, director of digital collateral at Ginnie Mae, in a webinar on government agency’s e-note initiative hosted by Falcon Advisors late last week. The webinar’s organizer, which is headed up by former government-sponsored enterprise regulator Armando Falcon, has been consulting with Ginnie on digital initiatives. Ginnie is an arm of the Department of Housing and Urban Development.
Chandler stopped short of promising the flexibility related to commingling e-notes, characterizing it as a “future policy choice that Ginnie may decide upon.”
Ginnie Mae’s original decision to disallow commingling stemmed in part from concern that it could affect the marketability of the rights to mortgage servicing cash-flows from borrower payments, but it has said all along that it would consider additional flexibilities as the digital initiative evolved.
Chandler’s comments follow on the heels of Ginnie’s release of
Since Ginnie opened its digital collateral program to applicants