Starting Sept. 1, applicants will be required to file applications for Ginnie Mae Issuer approval electronically via Ginnie Mae's new Application Connection, located on its website.
Due to the transition to a paperless application process, the company will not accept paper-based (hard copy) applications after July 31.
‘We want to do everything that we can to ensure that our process is smooth, efficient and responsive for all parties,’ says Ted Tozer, president of Ginnie Mae, in a release. ‘This includes creating a more efficient application process, becoming more responsive to applicant concerns and helping prospective Issuers clearly understand our issuer eligibility criteria and what it means to become a participant in our program.’
In order to educate applicants on how to use the new electronic system, Ginnie Mae is advising that all applicants complete two courses through the Ginnie Mae Online University – ‘Ginnie Mae 101’ and ‘Applying to Ginnie Mae’ – before starting an application for Ginnie Mae MBS Issuer approval.
Once an applicant has registered on Application Connection, the applicant will have thirty days in which to complete the application.
‘This new process, which will also allow applicants to check their application status online, will make the process more transparent,’ adds Tozer.
The company has also revised its minimum net worth requirements for applicants who wish to participate in multiple program types (single-family, multifamily, home equity conversion mortgages (HMBS), and/or Title I manufactured home loan-backed securities).
Beginning Sept. 1, applicants seeking Ginnie Mae approval to participate in multiple program types will be required to have an adjusted net worth equal to or greater than the sum of the minimum net worth requirements for each program type in which the applicant intends to participate.