Getting Startedand Being aSuccessful GinnieMae Issuer

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Steps Required of New Issuers toPurchase a Commitment and Issuean MBS

These steps are referred to by Ginnie Mae as“Onboarding”

The steps are placed in four categories:

• Travel

• Training

• Testing

• Reporting

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Issuers must send one representative to NewYork to meet with Ginnie Mae’s PoolProcessing Agent (BNY Mellon Bank)

The purpose of the trip is to get access to twocritical pieces of software titled GinnieNET andthe Ginnie Mae Enterprise Portal (GMEP or thePortal)

Travel

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GinnieNET is a web-based application thatpermits an Issuer to create a MBS with one ormore government insured or guaranteed loans.

GMEP is a web-based application that permitsan issuer to access many web-basedapplications created by Ginnie Mae to conductbusiness with Issuers.

The Reporting feedback System (RFS) is anapplication within GMEP that permits Issuers tosubmit monthly pool and loan-level reports.

Training

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TravelIssuers must take the items below to BNY MellonBank:

Letter on the Issuer’s letterhead stating that theperson attending the enrollment process willperform the duties of the EnrollmentAdministrator.

Government ID (Driver’s License, Passport)

Copy of form HUD 11702, if a current form isnot on file with BNY Mellon Bank

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Reporting

After receiving access to GMEP (“ThePortal”), Issuers must insert severalgovernment forms that we refer to as MasterAgreements

(See section 10-3A of the MBS Guide for adiscussion about these agreements.)

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Reporting

Master Agreements include forms HUD 11702,11707, 11709A, 11709, 11715, 1172

Form HUD 11702 is a resolution of the Board ofDirectors and a certificate of authorized signatures

Form HUD 11709 is a master agreement for theIssuer’s principal and interest custodial account

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Reporting

Form HUD 11707 is a Master ServicingAgreement. With this form, the Issuer tellsGinnie Mae if they will service the pools aloneor if they will hire a sub-contract servicer toassist them. If they hire a sub-contractservicer, the company must be an approvedIssuer. The sub-contract servicer must alsosign this form in GMEP (the Portal). Ruleswhich govern this relationship are in chapter 4of the MBS Guide.

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Reporting

Form HUD 11709A is a debit authorization form.The Issuer gives Ginnie Mae’s CPTA (CentralProcessing and transfer Agent, BNY Mellon Bank)permission to debit the Issuer’s central P&Icustodial account, when it places this form inGMEP (the Portal).

Form HUD 11715 is the Master CustodialAgreement. The Issuer executes this form withtheir document custodian.

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Reporting

Form HUD 11720 is the Master Agreement forthe Issuer’s escrow custodial account.

Chapter 13 of the MBS Guide is dedicated torequirements of the document custodian (FormHUD 11715).

Chapter 16 of the MBS Guide is dedicated torequirements of the funds custodian (Forms HUD11709, 11709A, 11720).

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Issuers must conduct a test of their servicingsoftware with RFS to confirm that monthlyaccounting reports will be accepted without anyproblems. If an Issuer has hired a sub-contractservicer, the sub-contract servicer will completethe test.

The company that conducts the test for GinnieMae is Virtual Development.

Testing

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Testing

Before the first monthly ACH debit of theIssuer’s central principal and interest (P&I)account occurs, the Issuer must arrange forthe Central Processing and Transfer Agent(CPTA, BNY Mellon Bank) to complete atest debit of the Issuer’s central P&I account(See section 16-4 of the MBS Guide fordetails about this process.).

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Annual Reporting

All approved Issuers must present their auditedfinancial statements via GMEP no later than 90days after the end of the Issuer’s fiscal year(See section 3.7A of the MBS Guide for moredetails about this requirement.).

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Quarterly Reporting

Issuers that are not regulated by the FDIC,NCUA, or the OCC must provide Ginnie Maewith an unaudited quarterly financial statement(Details are presented in section 3-7B of theMBS Guide.).

The unaudited report is presented on a formHUD 11750 titled the Mortgage BankersFinancial Reporting Form (MBFRF).

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Training

New Issuers are strongly advised to haveemployees that conduct business with GinnieMae take online courses with Ginnie MaeUniversity. Each course can be completed inabout 50 minutes.

The university is located on the Ginnie Maewebsite: GinnieMae.gov

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Reporting

All new Issuers are required to sendtheir Account Executive employeecontact and corporate profileinformation.

This information is explained in atemplate of an Excel spreadsheet.

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Onboarding Questions

Contact

Richard Washington 202-475-4928

or John Kozak 202-475-4927

DocumentCustody

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The Issuer’s Role inDocument Custody

10:30AM

Tomorrow

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Ginnie Mae is Different

We are not a GSE

We do not issue securities

We do not set underwriting standards FHA

VA

RD

PIH

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Ginnie Mae is Different

Different Risks No ability to buy out individual loans

Delinquency

We do not issue securities

Issuer default Ginnie Mae becomes the Issuer

Entire portfolio

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Issuer Requirements The Guide Chapter 11

Pool & Loan Package Certification Process

Chapter 13 Document Custodian Eligibility & Responsibilities

Document Custody Manual Chapters 3, 4,5 & 10

Document requirements

Document review requirements

AllRegs

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Minimize risk of certification problems Focus

Closing documents

Post closing reviews

Custodian Relationship

Manage Releases Review 90 & 180 release reports

Update release requests as loan status change

Issuer Requirements

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Who’s Responsible?

Susan SkilesMortgage Banking Analyst

susan.w.skiles@hud.gov

Richard WashingtonSenior Account Executive

Ginnie Mae

Richard.J.Washington@hud.gov

John KozakSenior Account Executive

Ginnie Mae

john.j.kozak@hud.gov