Ginnie Mae has extended pandemic-related flexibilities around a threshold for late payments for the fourth time.
The exemption for certain loans, which was due to expire at the end of January, will stay in place until at least July 31 for mortgage companies that work with the government bond insurer, which is an arm of the Department of Housing and Urban Development.
“Ginnie Mae is continuously engaged with issuers to ensure that our policies support operational efficiency and promote working effectively with borrowers on loss mitigation efforts,” Ginnie Mae Principal Executive Vice President Sam Valverde said in a press release. “These extended flexibilities are an appropriate response to the lingering effects of the pandemic on issuer operations.”
The government agency originally put the contingency in place in May 2020 and set it to expire at the end of that year. It was subsequently extended until July 31, 2021, then to Jan. 31, 2022 and Jan. 31, 2023.
The government agency also is allowing the use of certain alternative audit procedures for on-site reviews to continue for the time being. However, Ginnie said it expects these to be discontinued “as soon as practicable for issuers whose fiscal years end beyond June 30.”
Ginnie Mae’s role is to ensure mortgage-backed securities investors receive payments from securitized mortgages that are insured or guaranteed by other government agencies. It counts on mortgage companies to act as issuers for its securities.