Ginnie Mae issuers will soon be required to make certain document submissions through Ginnie Mae Central as part of
This includes audited financial statements, the agency disclosed in
The Mortgage Collaborative, a cooperative organization that among other things provides its members with secondary marketing power, said its members lauded the change during its Spring meeting this week.
"We applaud Ginnie Mae for implementing a solution that will simplify the submission process for issuers," Melissa Langdale, president and chief operating officer, said in a statement. "Many of our members are looking for ways to leverage technology to create efficiencies in their process, as evidenced by the numerous conversations on this topic during our Spring conference this week, and this change from Ginnie Mae will certainly help in that larger endeavor."
Mortgage-backed securities issuers starting after May 13 will no longer use the Independent Public Accounting module and the Financial Report Review Agent in the Ginnie Mae Enterprise Portal.
Instead proof of their fidelity bond, along with errors and omissions insurance need to be provided through Ginnie Mae Central, which is part of
However, submission of an insurance certificate is no longer required but can be done if the lender desires.
All extension requests issuers make also must be submitted through Ginnie Mae Central.
"Implementing Ginnie Mae Central marks an important transformation for our MBS program and represents a milestone in our ongoing modernization effort," said Ginnie Mae Principal Executive Vice President Sam Valverde, in a press release. "Ginnie Mae Central will simplify submissions for our Issuers and employ easy-to-use technology to make our program more approachable and more direct."
Last July, Ginnie Mae
With the latest update, audited financials remain due 90 days after the end of the issuer's fiscal year.
"In the event an issuer changes their fiscal year-end, Ginnie Mae will now require issuers to notify their account executive in writing of a change in their fiscal year-end within five business days from its decision to change its fiscal year-end date," the memo states.
Another change is that extension requests for the filing of audited financials will no longer be accepted by Ginnie Mae in the form of a letter. Starting May 13, these must be done through Ginnie Mae Central and must be certified by the company's CEO, chief financial officer or a person with an equivalent title.
While Ginnie Mae has updated its MBS guide, its parent, the Department of Housing and Urban Development will revise its Consolidated Audit Guide Chapter 6 at a later date.
If a conflict between those two documents exists, the MBS guide will take precedence until the Audit Guide is revised.
