Ginnie Mae, a guarantor for federally backed loans, announced in late May that it would make enhancements to its digital collateral program. One of the most notable changes is that the agency will reopen its program to new participants starting June 21.
The agency said that the program has been successful and that it wants to expand the amount of eIssuers that can participate. The program has been in a pilot phase for close to two years with a limited number of approved participants.
Ginnie Mae also made some updates to its digital collateral guide, including allowing participants to perform eModifications to eNotes and said that eNotes will be accepting using a power of attorney. These updates have been in effect since June 1 and apply to all existing eIssuers, Ginnie said.
The digital collalteral guide also provides eligibility and technological requirements for aspiring applicants, the agency said.
Alanna McCargo, president of Ginnie Mae, said in a statement that these enhancements are a result of experience gained from running a pilot of the program.
“The lessons learned during the initial pilot of the digital collateral program are now incorporated into the eGuide and resulting enhancements,” McCargo said. “We are excited to expand access to this program.
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Ginnie Mae launched its pilot program in 2020, paving the way for the agency to accept eNotes as satisfactory collateral for its mortgage-backed securities.
At the time, industry stakeholders celebrated Ginnie’s decision to accept eNotes, noting that it’s a significant step forward on the path to total digital mortgage adoption. Fannie Mae and Freddie Mac also accept eNotes.
By early 2021, the agency announced the issuance of the first mortgage-backed security (MBS) backed by digital pools. The MBS were loans closed by Rocket Mortgage in December 2020.
Since the launch of the program, over $8 billion have been securitized in eNotes, according to the agency. All current participants in the Ginnie Mae program are existing Ginnie Mae Issuers, a requirement under the program.
