Ginnie Mae MBS Guide (5500.3, Rev. 1) Chapter 34 — Special Assistance Programs
Ginnie Mae MBS Guide Chapter 34 (Special Assistance Programs). New-source fetch + gap-fill (verbatim).
Verbatim regulatory text
Verbatim provisions from Ginnie Mae MBS Guide (5500.3, Rev. 1) Chapter 34 — Special Assistance Programs — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
: 2017-10-04 From time to time, Ginnie Mae may offer special assistance to Issuers in connection with initiatives by the President of the United States, the Congress, or Federal agencies. This chapter describes the special assistance programs offered by Ginnie Mae and the terms and conditions under which such programs are made available to eligible Issuers.
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
DISASTER ASSISTANCE PROGRAMS Under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act), the President has the authority to declare a major disaster for any area that has been affected by damage of sufficient severity and magnitude to warrant major disaster assistance. When the President declares a major disaster, Ginnie Mae may, at its sole discretion, extend to Issuers one or more of the Disaster Assistance Programs identified in this MBS Guide, Ch. 34, Part 2. Ginnie Mae will announce through an All Participants Memorandum (APM) if Disaster Assistance Programs will be made available for a given major disaster as well as the expiration date for each program. These disaster assistance programs are not available until authorized by a Disaster APM. Section A. Definitions
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
: 2017-10-04 For purposes of the Disaster Assistance Programs identified in this chapter, the following definitions shall apply. “Eligible Loan” means any single-family forward mortgage loan for which (1) the property securing the loan is located within a Designated Disaster Area, or (2) for which the borrower is experiencing economic hardship related to the designated disaster, as established by the underlying federal insuring or guaranteeing agency, including loans secured by properties outside a Designated Disaster Area. “Eligible Month” means any month in which one or more of the Disaster Assistance Programs detailed in this MBS Guide, Ch. 34, Part 2 are available as described in the applicable Disaster APM. “Designated Disaster Area” means the geographic region covered by a presidential declaration under the Stafford Act of a major disaster, also referred to as Presidentially-Declared Major Disaster Areas (PDMDA) that is the subject of a Disaster APM. For each PDMDA, Issuers may contact the Federal Emergency Management Agency (FEMA) to obtain information on the related counties and their corresponding declaration dates. This PDMDA information may be obtained directly from the FEMA website at www.fema.gov/disasters or by contacting their local FEMA office. “Disaster APM” means an All Participants Memorandum that identifies the Presidential disaster declaration(s) underlying Ginnie Mae’s decision to activate and implement its Disaster Assistance Program(s), the specific Disaster Assistance Program(s) that will be made available for such disaster(s), and the expiration date for each Disaster Assistance Program.
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
“Qualifying Portfolio” means, an Issuer’s Ginnie Mae loan portfolio if five percent (5%) or more of its unpaid pool principal balance corresponds to loans located within the Designated Disaster Area, based on an Issuer’s most recent report of pool, loan package, and loan data in Ginnie Mae’s Reporting and Feedback System (“RFS”). Section B. Disaster Relief Loan Buyout Authority Program
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
: 2017-10-04 Program Description. The Disaster Relief Loan Buyout Authority Program enables Issuers to buy out eligible loans, subject to Ginnie Mae approval, even if the loans are not delinquent, or do not otherwise meet the conditions for a buyout detailed under Ginnie Mae’s standard terms in MBS Guide, Ch. 14 or 18. Program Requirements. Issuers must receive Ginnie Mae’s written permission to buy out loans under this provision. To request such permission, an Issuer must use the Transmittal Form Letter for Disaster Relief Buyout Requests (Appendix XI-05), in the manner prescribed by the relevant Disaster APM. The Issuer must provide Ginnie Mae the loan-level information required by the form letter for each loan identified therein. Ginnie Mae may, at its sole discretion, approve or reject a request, in whole or in part. The Disaster Relief Buyout Request Letter must be signed by an individual authorized to act on behalf of the Issuer, as listed in the Issuer’s current Form HUD 11702, who will certify on behalf of the Issuer that each loan listed in the request meets the eligibility requirements discussed above, and that the Issuer is buying out the loan in order to provide relief to the homeowner. Buyout Amount. If an Issuer’s request is approved, the Issuer must buy the loans out of the pools for the unpaid principal balance of each loan, less any unreimbursed advances previously made by the Issuer.
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
, Rev. 1 34-2 ginniemae.gov Impact on Re-Pooling. A loan that is bought out under the authority of this disaster relief provision will be eligible for repooling only if it has successfully undergone a loan modification in compliance with the guidelines of the applicable federal agency guaranteeing or insuring the loan. The resulting loan modification must meet Ginnie Mae’s standard pooling parameters and documentation requirements for loan modifications. Please note that refinanced loans are not restricted as to pooling since a refinanced loan is a new loan and must only meet the eligibility loan criteria in the MBS Guide Ch. 9, Part 2 of this Guide. Section C. Delinquency and Default Ratio Disaster Assistance Program
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
: 2017-10-04 Program Description. The MBS Guide, Ch.18, Part 3 provides the delinquency and default thresholds used by Ginnie Mae in determining whether to approve commitment authority requests, pool number requests, and Transfers of Issuer Responsibility. Under the Delinquency and Default Ratio Disaster Assistance Program, Ginnie Mae may, in its sole discretion, and upon request from an Issuer, exclude Eligible Loans from
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
calculations of delinquency and default ratios identified in the MBS Guide, Ch. 18, Part 3. Program Requirements. When the program is made available pursuant to a Disaster APM, Issuers must request the exclusion of Eligible Loans directly from their assigned Account Executive. The Account Executive will instruct the Issuer how to submit necessary loan information, if any. Ginnie Mae will inform the Issuer in writing whether its request is approved, and if approved the expiration date of the exemption. Section D. Pass-Through Assistance Program
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
: 2026-02-26 Program Description. Under the Pass-Through Assistance Program (PTAP), Ginnie Mae may assist Issuers with pass-through payments to investors if the Issuer has a Qualifying Portfolio in accordance with this MBS Guide, Ch. 34, Part 2. The specific and limited purpose of this program is to allow Issuers facing a temporary liquidity shortfall that is directly attributable to a major disaster to receive the benefit of the Ginnie Mae guaranty without the consequence of termination and extinguishment. Requests for assistance under this program should only be made by an Issuer as a “last resort.” A request for assistance is a basis for a default. In underwriting requests for assistance, Ginnie Mae will assess whether there are sufficient grounds to expect the timely repayment of governmental advance. This program is not intended to provide long-term financing, or to address the full extent of solvency issues that an Issuer might face as the result of a disaster. Program Requirements. Issuers must request assistance within the timeline as provided in the applicable Disaster APM. The Disaster APM will also identify the Eligible Months for the PTAP. Issuers may request Pass-Through Assistance only for a particular month. If an Issuer requires Pass-Through Assistance for multiple months, the Issuer must submit a request for each individual succeeding Eligible Month, as detailed below.
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
, Rev. 1 34-3 ginniemae.gov The terms of repayment for each month that Ginnie Mae extends Pass-Through Assistance are detailed further below. Issuers may request assistance only after receiving the final pre-collection notice corresponding to the applicable reporting month. The Issuer must request assistance in accordance with the following procedures: Initial Application. For each Eligible Month for which assistance is requested, the Issuer will sign and submit, no earlier than the seventh 7th Business Day of each month, and at least three calendar days prior to that month’s remittance date or ACH date, the following: (i) a single copy of a Request for Disaster Assistance (Appendix XI-1) (a Request), properly executed by an authorized corporate official; (ii) two copies of a Supervisory Agreement (Appendix XI-2), properly executed by an authorized corporate official;
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
, Rev. 1 34-4 ginniemae.gov (iii) a single copy of Wire Instructions to Transmit Funds to Issuer from Ginnie Mae (Appendix XI-3) that identifies the applicable P&I Custodial Account(s) that is (are) subject to master agreement(s) in the form prescribed by Ginnie Mae; and (iv) a signed statement, on the Issuer’s letterhead, articulating the Issuer’s previous efforts in obtaining private financing for the subject shortfalls as well as the Issuer’s plan for repaying any funds advanced by Ginnie Mae. Ginnie Mae may request additional supporting documentation. The Issuer must send these documents electronically in PDF, and where applicable, in Excel format to [email protected]. The Issuer must also send the original hard copy of each document by express mail to the Senior Vice President of the Office of Issuer & Portfolio Management Attention: Declared Disaster (see Summary of Addresses). These documents are applicable under both the Ginnie Mae I MBS Program and the Ginnie Mae II MBS Program. Ginnie Mae may request additional documentation to support the Issuer’s signed statement. Each of these documents must be signed by an individual authorized to act on behalf of the Issuer as listed in the Issuer’s current Form HUD 11702. Ginnie Mae Determination. If Ginnie Mae approves the Request, it will execute the Supervisory Agreements and return one copy to the Issuer. Ginnie Mae will wire the requested advances directly into the Issuer’s P&I custodial accounts at times that will enable the Issuer to make payments to security holders at the times specified in MBS Guide, Ch. 15. If Ginnie Mae denies the Request, it will notify in writing the Issuer of the denial. (c) Computation of Available Pass-Through Assistance The Issuer will compute the amount of the advance requested from Ginnie Mae for each eligible month as follows: (d) Determine the total amount necessary to make payments to security holders that will be required for the Eligible Loans in the Eligible Month that is the subject of the request. Determine the total amount of funds available to the Issuer to satisfy the amount computed in paragraph (i), including borrower collections for the applicable month and any Issuer funds being applied to meet advance obligations. Subtract the amount computed in paragraph (ii) above from the amount computed in paragraph (i) above. The balance is the amount of Ginnie Mae advance assistance (eligible assistance) that the Issuer will be eligible for in the Eligible Month that is the subject of the request. The computations in paragraphs (i), (ii), and (iii) above, must be reflected in the corresponding fields of the executed Request for Disaster Pass-Through Assistance, Appendix XI-01.
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
Repayment Responsibility. An Issuer that receives an eligible advance from Ginnie Mae will be obligated to repay it to Ginnie Mae according to the terms set forth in the applicable Supervisory Agreement. The applicable interest rate is the rate that Ginnie Mae pays for its monthly borrowing from the Treasury Department during the month of the related eligible advance. Issuers should use Ginnie Mae Payment Instructions in MBS Guide, Ch. 6 to make the required repayments. Although the specified repayment dates and the associated Supervisory Agreements are not expected to be extended, they may be extended in the sole discretion of the President of Ginnie Mae. Default Status. Under the applicable Supervisory Agreement, the Issuer will be considered in default under the governing Guaranty Agreement or Contractual Agreement. If Ginnie Mae executes the Supervisory Agreement, Ginnie Mae will forbear from exercising its right to extinguish the Issuer’s rights and will allow the Issuer to remedy its default by repaying each eligible advance to Ginnie Mae, together with required interest, within 90 days of the date of Ginnie Mae’s payment of that eligible advance. Execution of the Supervisory Agreement does not obligate Ginnie Mae to forbear from exercising its rights in the event of a default by the Issuer for a basis other than a default due to the Issuer’s request for eligible advances. Although an Issuer will be in default as a result of its request for eligible advances pursuant to this chapter, the Issuer’s ability to obtain commitments, issue securities, or transfer Issuer responsibility will not be affected so long as it complies with the Supervisory Agreement executed by Ginnie Mae and all other applicable Ginnie Mae I and Ginnie Mae II MBS Program requirements. If Ginnie Mae denies the Request, the Issuer’s ability to obtain commitments, issue securities, or transfer Issuer responsibility may be affected. Section E. PTAP Related to COVID-19 for Single Family Issuers
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
: 2026-02-26 (1) Program Description. Under the PTAP Related to COVID-19, Ginnie Mae may assist Issuers under the Single-Family program with pass-through payments to investors if the Issuers are facing a temporary liquidity shortfall directly attributable to the national emergency declared by the President on March 13, 2020 (PTAP/C19). PTAP/C19 will assist these Issuers with their obligations under the Ginnie Mae program without the consequence of termination and extinguishment. Neither a request for assistance, nor the actual provision of assistance under this program, will, in and of itself, constitute a basis for default. An Issuer should make a request for PTAP/C19 only as a “last resort.” Ginnie Mae will assess whether there are sufficient grounds to expect the timely repayment of any PTAP/C19 advance. This program is not intended to address the full extent of solvency issues that an Issuer might face as a result of COVID-19. (2) Program Requirements. Issuers may request PTAP/C19 assistance only once per month to cover shortfalls on the principal and interest (P&I) due to mortgage-backed security (MBS) holders the month that the request is made. PTAP/C19 funds may be used only to cover shortfalls in the P&I owed to MBS security holders associated with loans that are delinquent, which includes loans in forbearance, as of the date that each request for assistance is submitted.
Ginnie Mae MBS Guide Chapter 34 — Special Assistance Programs
, Rev. 1 34-5 ginniemae.gov PTAP/C19 funding may not be used to cover other Issuer operational or servicing costs.