1 ginnie mae systems overview. 2 integrated pool management concept of operations ginnie mae...

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Ginnie Mae Systems Overview

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Integrated Pool Management Concept of Operations

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MultifamilyDatabase

Master AgreementDatabase

Other Ginnie Mae Systems

Maintained by other contractors

IPA MBSIS

GMEC

New Issuer Module

IPMS – New Pool Processing Module

PlatinumDatabase

REMICDatabase

IPMS – Pool Reporting Module

IPMS – Central Registry Module

Pool Transfer Module

Letter of Credit Module

Fed Interface Automated Clearing House

Unclaimed Funds System

GinnieNETNetwork

Ginnie MaeWebsite

Custodian

Issuer

Ginnie MaeWebsite

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Ginnie Mae Proprietary SystemsIPMS Interfacing Modules

• New Issuer Module

• New Pool Processing Module

• Pool Reporting Module

• Central Registry Module

• MBS Factor and Tax Reporting Module

• REMIC Database Module

• Multifamily Database Module

• Pool Transfer Module

• Master Agreement Module

• Letter of Credit Module

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Other Ginnie Mae Proprietary Systems

• GinnieNET

• Unclaimed Funds System

• Ginnie Mae Web Site

• Ginnie Mae Enterprise Contact System, (“GMECS”)

• REMIC and Platinum Securities Search Pages

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Bank of New York Proprietary SystemsInterfacing Modules

• Automated Clearing House (“ACH”)

• Fedwire Interface

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New Issuer Module

• PC based tracking, review, and approval module for Ginnie Mae Issuer applications

•Used by Ginnie Mae staff

•Interface to IPMS is batch via Connect Direct*

• Maintenance and Upgrade

*Connect Direct is a software product from Sterling Commerce which facilitates file transfers

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• Mainframe (batch and online) application that:

– Processes pools from GinnieNET– Re-edits pools from GinnieNET– Allows data entry of manual pools– Checks Master Agreements– Checks Commitment Authority, Status, and Pool Numbers– Allows automatic and manual approval of pools– Generates Multiple Issuer Pools– Releases New Issue files to Federal Reserve– Updates Bank’s Fed Delivery System with Pool Delivery Instructions– Adds pools to Pool Reporting Module– Creates investor position on Central Registry


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GinnieNET

• A web based application with a dedicated network communications facility to provide Ginnie Mae Issuers and Custodians with a timely, accurate, reliable and paperless method for:

-New Pool Processing

- Investor Reporting

- Certifications• Transmissions are sent to the Pool Processing Agent (PPA), and Central Paying and Transfer Agent (CPTA) and the Mortgage-Backed Securities Administration Agent

•Interface is batch via Connect Direct*


Ginnie MaeWebsite


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Master Agreement Module

A PC based application that:

• Maintains and tracks the following Master Agreement forms:– Master Servicing Agreement– Servicer’s P&I Custodial Account– Custodial Agreement– Servicer’s T&I Custodial Account–Corporate Resolution

• Creates confirmation letters and reports• Recertifications and Document Custodian Transfers are updated from GinnieNET• Interface is batch via Connect Direct*•Maintenance and Upgrade


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Multifamily Database Module

• Consists of two methods of access:

– A PC module which is updated by IPMS and shares common data with the Web application. Interface is via Connect Direct* from the mainframe

– Web application that allows brokers and the public to view and query Multifamily Mortgage Backed Securities pool information



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– Processes Remaining Principal Balances (RPB)– Allows for the manual data entry of RPBs– Edits RPBs– Calculates and disseminates Factors for Ginnie Mae I, Ginnie Mae II,

and Platinum Pools– Calculates and generates Ginnie Mae I and Ginnie Mae II Guaranty Fee ACH collections– Calculates Certification Due Dates– Tracks Issuer Reassignments and Mergers– Tracks Custodian changes– Calculates Ginnie Mae II P&I collection– Calculates ARM rate changes– Maintains MBS and Multiclass pool detail– Updates Multifamily database


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IPMS - Central Registry Module


– Maintains all of Ginnie Mae MBS certificate/book entry positions and security holders – Allows posting of the original issuance certificates/book entry positions and the automatic validation of certificate transfers – Contains pool, investor and Issuer information– Makes P&I payments based on information in the central registry– Reconciled with the Fed nightly– Ginnie Mae’s guarantee is based on the central registry


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PC based system that:

• Tracks all Ginnie Mae I unclaimed P&I funds received from issuers

• Tracks all Ginnie Mae II unclaimed funds from investor checks

• Updated to reflect release of funds to investors

•Maintenance and Upgrade

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Pool Transfer Module

PC based system that:

• Processes requests from issuers for transfer of servicing rights from one Issuer to another

• Used by Ginnie Mae staff and contractor

•Interface is batch via Connect Direct*



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Letter of Credit Module

PC based application that:

• Creates, by Issuer, a report of delinquent pool final certifications and recertifications

• Calculates tolerance levels based on Ginnie Mae policy

• Reports are generated and mailed

• LOC is posted, recorded and tracked

• IPMS interface is batch via Connect Direct*



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REMIC Database Module

• Web based application which allows investors to query and view published Ginnie Mae REMIC information

• Interface is via Connect Direct* to/from IPMS



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Ginnie Mae Web Site

• Provides an additional method of communication with Ginnie Mae stakeholders

• Used to launch Multi-family Database, REMIC and Platinum Securities Search Pages

•Houses a rolling thirteen month pool RPB, principal and interest payment factor, OID and MDF data

• Maintained by Ginnie Mae’s Mortgage-Backed Securities Administration Agent

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Ginnie Mae Enterprise Contact System(GMECS)

• Maintains all of Ginnie Mae’s contact information enterprise-wide

• Is the database of record for all contact data

• Is accessible via the internet by all systems and entities that require access to contact information

• Maintained by Ginnie Mae’s Mortgage-Backed Securities Administration Agent

Web based application that:

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Fedwire Interface

• A Bank of New York Mellon proprietary system that is

used to create Fedwire securities transfer messages and sends delivery instructions to the Federal reserve Bank (“Fed”) for free delivery of securities settlement.

• A method of transmitting bulk data to the Fed

• Transmission is via NDM* transmissions

*NDM (“Network Data Mover”) is a software product from Sterling Commerce which facilitates mainframe file transfers

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Automated Clearing House (ACH)

• A nationwide funds transfer network which enables participating institutions (Issuers and CPTA) to distribute electronic credit and debit entries to bank accounts and settle such entries

•IPMS interface is NDM*

*NDM (“Network Data Mover”) is a software product from Sterling Commerce which facilitates mainframe file transfers

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Function 1Process New Issuer Applications

• New applicants apply to Ginnie Mae to obtain authority to issue Ginnie Mae

Mortgage Backed Securities

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New Issuer Module

New Pool Processing Module

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New Issuer Module

• Add, update, approve and archive an application

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IPMS - New Pool Processing Module

• Add, update, and view– Issuer– Issuer status– Issuer contact information

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Source Applicant

Target Office of Mortgage Backed Securities

Inputs Application package, resumes, financial data, Data Entry sheet

Outputs Approval Letter, Secretary Memo, GinnieNET Enrollment package

Frequency Any time throughout the month

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Function 2Request and Approve Commitment Authority

and Pool Numbers

• Approved Issuers must apply for commitment authority

• Ginnie Mae approves commitment authority requests

• Issuer must request pool numbers in advance

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and Pool Numbers

• Request, process, adjust delete, close out commitments

• Adjust commitment fee

• Request and release pool numbers

IPMS - New Pool Processing Module

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and Pool Numbers

Source Issuer

Target Office of Program Operations and Office of Mortgage Backed Securities

Inputs Letter of Transmittal for Commitment Authority and/or Pool Numbers, Commitment to Guarantee MBS, Fees and Cash Receipt Voucher

Outputs Confirmation Letter for Commitment Approval,

Confirmation Letter for Pool Numbers Assigned

Frequency Monthly, Quarterly

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Function 3IPMS – New Pool Processing

• Certification, review and approval of loan and pool documents

• Issuance of securities

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Function 3New Pool Processing

Fedwire Securities Service

Fedwire Interface

Pool Reporting ModuleCentral Registry Module


Master Agreement

Module

MultifamilyModule

Ginnie MaeWebsite

Ginnie MaeWebsite

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GinnieNET

• Add, change or delete new pools

• Manually enter or import loan details

• Apply Ginnie Mae edits before transmitting to network

• Must be authorized to submit pools to

the network

• Fingerprint verification

• Targeted Lending

• Custodian Certification

Ginnie MaeWebsite

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Master Agreement Module

• PC based module that maintains account information for the following Master Agreements:

– Form HUD 11707– Form HUD 11709– Form HUD 11715– Form HUD 11720– Form HUD 11702

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• Allows data entry of manual pools/Update file of GinnieNET electronic pools

• Checks Master Agreements

• Checks commitment authority, issuer status, pool numbers

• Creates investor position on Central Registry

• Add new pool to Pool Reporting Module

• Release pools to Fed for delivery

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Fedwire Interface

• Batch transmission (bulk data) to the Fed

– New Pools

• Creates Fed wires with securities delivery instructions

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Federal Reserve Bank

• Process new issue bulk data file

• Update Securities Description Master file with CUSIP information

• Send broadcast to Fedwire participants advising that new issues have been added

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Multifamily Database Module

• Search for Multifamily pools by:– CUSIP Number– FHA Case Number– Pool Number

Pool type Issuer number

• Provides Multifamily pool information for Project Loan Pools

• Updated by IPMS

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Function 3IPMS – New Pool Processing

Source Issuer, Document Custodian

Target Pool Processing Agent

Inputs Pool Information, Mortgage Details. Document Custodian Certification and Agreement

Outputs Targeted Lending Loan Level Detail report, New Issue file and Delivery Instructions to the fed Wire System and updates Multifamily Database, Pool reporting and Central Registry

Frequency Daily

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Function 4Remaining Principal Balance (RPB)

Factor Reporting Processing

• Issuers report RPB for

each pool/loan package

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GinnieNET

Pool Reporting Module

FTP or NDM

Ginnie MaeWebsite

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Factor Reporting ProcessingGinnieNET

• Investor Reporting Module

• Initial RPB Reporting

• All RPB corrections

• Multifamily prepayment penalties

Ginnie MaeWebsite

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Factor Reporting ProcessingIPMS – Pool Reporting Module

• Update current RPB from transmissions and GinnieNET

• Manually update RPB

• Edit RPB

• Calculate MBS and Platinum Pool factors

• Create Fed P&I Factor Files

• Disseminate MBS and Platinum Pool factors

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Source Issuer

Target Central Paying and Transfer Agent (CPTA)

Inputs Monthly RPBs from Issuers

Outputs RPBs and factors reported to FRBNY and Investors,

Issuer Statistical Reports for Ginnie Mae

Frequency Monthly



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Function 5Ginnie Mae I Depository Payment

Calculation, ACH and Pre-Collection Notice

• Under the Ginnie Mae I MBS Program, Issuers accounts are debited by ACH for the P&I due to the Depository

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Fedwire Interface

Central Registry Module

FRB Automated Clearing House


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Calculation, ACH and Pre-Collection NoticeIPMS - Pool Reporting Module

• Calculates pool P&I

• Creates pre-collection notices based on the depository’s pro-rata

share

• Creates Fed ACH debit file

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Calculation, ACH and Pre-Collection NoticeIPMS – Central Registry Module

• Maintains all outstanding MBS securities

• Nightly position reconciliation with the Depository

• Calculates Depository’s pro-rata share of the pool

• Reconciles payment with the Depository

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Calculation, ACH and Pre-Collection NoticeFRB Automated Clearing House (ACH)

• ACH file transmitted to the Federal Reserve Bank via bulk data transmission

for processing

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Calculation, ACH and Pre-Collection NoticeFederal Reserve Bank

• For Ginnie Mae I and Platinum

The contractor sends to FRB the P&I factor information for the Ginnie Mae I and Platinum securities with a payment date of the 15th of the month

• For Ginnie Mae II and Platinum

The contractor sends to FRB the P&I factor information for the Ginnie Mae II and Platinum securities with a payment date of the 20th of the month

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• On the business day before payment, contractor transmits via the Federal Reserve System ACH a pre-notification ACH settlement file for the Ginnie Mae I payment date of the 15th of the month

• FRB verifies the credit amount on the ACH file to the payment amount appearing

on the debit P&I notification advice FRB generated after processing the Ginnie Mae I P&I factor file for the payment date of the 15th of the month

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• FRB processes the P&I factor file and faxes an error report of factor and par balance holdings discrepancies to the contractor for their input in resolving discrepancies.

• Contractor investigates the errors and faxes their response by noon that day.

• FRB processes the changes and creates a debit reconciliation file (debit P&I notification) which is delivered to the contractor via bulk data. During the same process, the credit P&I notifications are created and delivered to the holder of record

of the securities.

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Source Issuer



Outputs Pre-Collection notice to Issuer and ACH file to FRBNY, Factor error report, Debit P&I notification

Frequency Monthly



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Function 6Ginnie Mae II ACH and Pre-Collection Notice

• Under the Ginnie Mae II MBS Program, Issuers are required to deposit into a custodial account funds sufficient to enable the Central Paying and Transfer Agent (CPTA) to make payments to security holders

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Automated Clearing House

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• Calculates the pool P&I

• Creates pre-collection notices

• Creates and transmits ACH file

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• Debit Issuers’ account and credit P&I account at the CPTA

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Source Issuer



Outputs Pre-Collection notice and debit Issuers account via ACH

Frequency Monthly

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Function 7Collection of Ginnie Mae I and II Guaranty Fee

Issuers are required:

– to pay a monthly guaranty fee to Ginnie Mae for each pool

– maintain accounts for guaranty fee payments

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• Calculates the guaranty fee

for both Ginnie Mae I and Ginnie Mae II pools

• Creates ACH file

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• Debits issuers’ accounts for the amount of Guaranty Fee for both Ginnie Mae I and Ginnie Mae II pools

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Source Issuer

Target Central Paying and Transfer Agent (CPTA) and Ginnie Mae


Outputs Funding of ACH for Guaranty Fee payment

Frequency Monthly


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Function 8Central Registry and Payment Functions

• Repository of all Ginnie Mae pool, security and investor data

• Under Ginnie Mae II Program, Issuers make P&I funds available to the CPTA

for payment to security holders by the 20th calendar day

• Annual tax reporting for Ginnie Mae II

• Ginnie Mae I emergency payments

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Pool Reporting Module Central Registry Module


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IPMS - Central Registry

• Calculates investor’s pro-rata share of the pool P&I

• Creates checks and vouchers

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• Tracks payment information of un-cashed checks for both Ginnie Mae I and Ginnie Mae II investors

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Source Pool Reporting and Central Registry

Target Security Holder

Inputs Pool factor, Security holder information, Returned P&I checks

Outputs Payment calculation for each security holder in the pool plus payment to security holder

Frequency Payment on the 15th and 20th calendar day


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Function 9Collection and Dissemination of Financial Data

• RPB Factor dissemination

• Monthly accounting reports (11710D) are submitted through GinnieNET

• Quarterly Issuer Certifications are submitted through GinnieNET

•Weighted average and geographic data is disseminated

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MBSIS

SECTOR Inc

All other recipients

GinnieNET


Ginnie MaeWebsite

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GinnieNET

• Form HUD 11710D and Quarterly Certifications

• Form HUD 11714 and 11714SN

• RPB Collection

Ginnie MaeWebsite

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• Maintain current and prior RPBs and factors

• Calculates weighted average and geographic data for new pools

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Source GinnieNET, MBSIS , Pool Reporting

Target FRBNY, Broker/Dealer, Service Bureau, Wall Street

Inputs RPB, Factor calculation, data disclosure files, quarterly certifications, form HUD 11710D, form HUD 11714 and 11714SN

Outputs Factor data, data disclosure files, quarterly certifications, form HUD 11710D, form HUD 11714 and 11714SN, Fed P&I Factor Files

Frequency Bi-Monthly, monthly, quarterly


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Function 10Transfer of Servicing

• Issuers must submit request to Ginnie Mae for transfer of servicing

• Ginnie Mae approves request and processes transfers

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New Pool Processing ModulePool Transfer Module

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Function 10Transfer of ServicingPool Transfer Module

• Input of Issuer request

• Calculate transfer fee

• Ginnie Mae approves request

• Creates approval letter

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• Check transfer eligibility status of pools and Issuer

• On the transfer effective date, pools purchased are reassigned to the purchasing

Issuer’s portfolio

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• Reassign pools

• Calculates recertification due dates

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Source Issuer

Target Central Paying and Transfer Agent, Ginnie Mae

Inputs Letter of request, diskette, fee

Outputs Letter of Approval, Secretary Memo, List of Pools Transferred

Frequency Anytime


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Function 11Final Certification and Recertification

Letter of Credit

• Ginnie Mae requires all pools to be certified

within 12 months of pool issuance or servicing change

• Issuer must post Letter

of Credit if Issuer fails Ginnie Mae’s pool/loan threshold

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Letter of Credit


Letter of CreditModule

GinnieNET

Ginnie MaeWebsite

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Letter of CreditGinnieNET

• Process and submits Final Certifications and Recertifications to IPMS electronically

Ginnie MaeWebsite

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Letter of CreditIPMS – Pool Reporting Module

• Updates pool certification or recertification information

• Tracks certification delinquency status

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Letter of CreditLetter of Credit Module

• Monitors delinquent pools and loans

• Generates delinquency letters

• Calculates LOC requirements

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Source Issuer, Document Custodian

Target Pool Processing Agent, Central Paying and Transfer Agent

Inputs Schedule of Pooled Mortgages, Pool Reporting Module

Outputs Letter of Credit, Certification Confirmation Letters, Monthly Letter of Credit Delinquency Reports

Frequency Monthly


Letter of Credit

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Function 12Certificate Transfers

• Security holder re-registration of Ginnie Mae certificate due to trade of security or loss or damaged certificate

• Deposits or withdrawal to/from the Depository

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Central Registry Module


Fedwire Interface

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IPMS - Central Registry Module

• A repository of all Ginnie Mae security holders

• Contains all open and cancelled securities

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Source Investors

Target Central Paying and Transfer Agent

Inputs Security Holder Requests, Lost Instrument Bond, Affidavit of Loss, Fee

Outputs Stop Transfer Order, Schedule of Subscribers and Ginnie Mae II Contractual Agreement, New Certificate

Frequency Daily


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Function 13Platinum Processing

• Issue New Platinum– Reconcile MBS collateral– Add, change, delete MBS pools

• Calculate Platinum Factors

• Update Platinum Search Page on the Web

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Fedwire Interface

Pool Reporting Module Central Registry Module


PlatinumDatabase

Ginnie MaeWebsite

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• Contains all Platinum Pools and the underlying MBS pools

• Interfaces with the Platinum Search Page on the Web

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• Maintains 20 Limited Purpose Accounts (“LPA”) to support Platinum issuance

• Fax collateral balances in the LPA to the

contractor so that Trust Receipts can be created prior to Platinum issuance

• Credits the paying agent account for the MBS pools and debit that account to pay the Platinum security holders

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Source Depositor

Target Platinum Trustee, Platinum Administrator

Inputs Deposit Agreement, MBS Collateral, MBS Factors

Outputs Trust Receipt, PO Bond, Delivery Instructions to the Fed, Updates Central Registry

Frequency Daily after “A” factor tape


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Function 14REMIC Information Agent

• Receive REMIC files from participants

• Update REMIC Database

•Update REMIC Search Page on the Web

• Reconcile REMIC collateral at the Depository

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Fedwire Interface



REMICDatabase

Ginnie MaeWebsite

* Via Connect Direct from mainframe, Web access


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• Contains data on all REMIC issuances

• Interfaces with the REMIC Search Page on the Web

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• Each trustee sends new issue and P&I factor information to the Fed

• Each trustee is responsible to fund its paying agent account by 9 am ET on payment date

• Each trustee holds underlying securities in a limited purpose account (LPA)

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Source Trustees, Financial Printers, Accountants, Operational Financial Advisor

Target REMIC Information Agent

Inputs Factor Files, Floating Rate Reset Files, Supplemental Statements, relay Files, Offering Circular Supplement, Announcements, Financial Data Statements

Outputs REMIC Database and Web page

Frequency Monthly


1 ginnie mae systems overview. 2 integrated pool management concept of operations ginnie mae...

Documents

approval module

ginnie mae issuers

ginnie mae issuer applications

upgrade ginnie mae website

ginnie mae staff interface

pool numbers

upgrade slide

file transfers slide