Information

Ginnie Mae

Ginnie Mae is not an investor. They do not own loans. They do however guarantee securities that have been sold that are insured or backed by FHA, VA and USDA.

Website: http://ginniemae.gov/
Members: 24
Latest Activity: Dec 12, 2018

Contact Info

VA 877-827-3702

 

FHA 888-297-8685

 

USDA 866-550-5887

 

Ginnie Mae Consumer Info

USDA Loss Mitigation Servicing Guide


Does Ginnie Mae have to approve my loan modification?
No. Unfortunately, some Servicers are incorrectly advising borrowers that Ginnie Mae must approve all loss mitigation and loan modification activities. All loan modifications must comply with the program requirements of the agency that insures or guarantees the loan and must be executed by the loan servicer. The agencies operate through loan insurance or guaranty programs that back up the borrower’s obligation to pay the mortgage loan at the loan level. Those agencies are listed in the table below.

Insuring/Guaranteeing Agency

Phone number
Federal Housing Administration 888-297-8685
Veteran Affairs 877-827-3702
Rural Development 800-670-6553
Public and Indian Housing 800-561-5913
Does Ginnie Mae have a loss mitigation loan program?
No. The collateral for Ginnie Mae-guaranteed securities consists of loans insured or guaranteed by the Federal Housing Administration (FHA), Veterans Affairs (VA), Rural Development (RD), or Public and Indian Housing (PIH). It is the agency that insures or guarantees the loan that will provide loss mitigation option

http://www.ginniemae.gov/issuers/FAQ's_loan_modifications.pdf

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Comment Wall

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Comment by Scott on April 8, 2014 at 8:52am

I tried to escalate with WF management, but they were of no help.  I'm going to have to phone them back and find out information regarding the insurer. 

Comment by Kevin - Greenville, SC on April 8, 2014 at 8:48am

Yes.  I would escalate w/Wells Fargo too. Who is the investor/insurer?

Comment by Scott on April 8, 2014 at 8:47am

Thank you Kevin.  I appreciate your insight.  Do you recommend that I find whomever is the insurer or guarantor and attack it from that end?  Basically I had Wells Fargo just decline my file outright and then lie about the reason.  I would like to do something to try to hold them accountable.

Comment by Kevin - Greenville, SC on April 8, 2014 at 8:36am

Scott,

The answer would be no. Here is the reason why - 


Does Ginnie Mae have to approve my loan modification?
No. Unfortunately, some Servicers are incorrectly advising borrowers that Ginnie Mae must approve all loss mitigation and loan modification activities. All loan modifications must comply with the program requirements of the agency that insures or guarantees the loan and must be executed by the loan servicer. The agencies operate through loan insurance or guaranty programs that back up the borrower’s obligation to pay the mortgage loan at the loan level. Those agencies are listed in the table below.

Comment by Scott on April 8, 2014 at 8:28am

Has anyone had any luck escalating issues on a Ginnie Mae short sale?  Any insight would be appreciated.

Comment by Wendy Rulnick on January 14, 2013 at 9:54am

Woking a new Ginnie Mae HUD pre foreclosure short sale in Navarre Florida.  Remember, you must be 31 days late and have a real hardship, per guidelines.

Comment by RJD on May 11, 2012 at 11:46am

What a pit of confusion Ginnie Mae creates! It is worth knowing what is going on since Ginnie Mae holds a vast number of new mortgages (and a considerable number of older ones too).

Ginnie Mae on its home page and its FAQ bends over backwards to pretend it does not own mortgages and is not an "investor"/"lender". But in terms of mortgages/deed of trust and the all-important promissory Note, it is. Ginnie Mae acquires the beneficial interest in the mortgage/deed of trust and the note when the Issuer of the Mortgage-Backed Security (MBS) deposits it into the security pool in exchange for Ginnie Mae insuring that pool with the full faith and good credit of the United States federal government. Thus Ginnie Mae becomes the owner of the mortgage . The Issuer of the Mortgage Backed Security, such as Bank of America, becomes merely the Servicer (debt collector) for the mortgage in return for %0.5 of fees collected as authorized by Ginnie Mae. The Issuer immediately gets the full value of the mortgage de facto by selling the Ginnie Mae backed bonds. So they have been paid in full with no further claim to the mortgage itself.

Your mortgage is now 100% in the hands of a corporation fully owned and operated by the United States government. That's where the "chain of title" and "chain of endorsement" of the note ends. When Ginnie Mae bobs and weaves to keep your eye off the government owning your mortgage, it talks about not buying mortgages or not using them as derivatives. That's because it already owns the mortgages as collateral in return for insuring them as derivatives.

Part of Ginnie Mae's song and dance is that while it owns everything, it delegates out all the responsibility to act to third parties. The direction from Ginnie Mae to talk to the Servicer and various government insuring agencies is because Ginnie Mae chose to do that.

It even allows MERS registration, despite not being a member of MERS. It does this by forcing the Issure/Servicer to follow Ginnie Mae's rights and authority over that of the rules of MERS. So in effect, MERS is just a recording system and Ginnie Mae is in charge. MERS is not really appointing the Servicer, Ginnie Mae is. Note the Issuer could not sell the mortgage itself to another MERS member because the Issuer does not own it any one more! Ginnie Mae does. Since MERS itself no longer forecloses under its own name under Rule 8, the use of MERS by Ginnie Mae is purely a courtesy with no legal clout behind it.

These are important facts to keep straight; especially if a Ginnie Mae authorized Servicer is misbehaving by not correctly following government rules and guidelines. A Ginnie Mae Servicer cannot invoke a mysterious "investor" who directed them to break the rules or claim to have gotten direction from some other mysterious third party. They must follow to the letter the programs of the FHA, VA, etc. Everything they do must be authorized by the relevant government agencies including Ginnie Mae itself. If in doubt challenge them to prove it. You may find you have more points of leverage than presumed. The government agencies in the case of a Ginnie Mae owned mortgage are far from passive or helpless like they are with private mortgages or those held by GSEs (Fannie Mae or Freddie Mae). The Servicer must step up to the plate and play by the rules. You have several ways through those agencies and HUD, which ultimately controls all of them including Ginnie Mae, to apply pressure.

 

Comment by Kevin - Greenville, SC on July 9, 2011 at 7:10pm

Does Ginnie Mae have to approve my loan modification?

 

No.  Unfortunately, some Servicers are incorrectly advising borrowers that Ginnie Mae must approve all loss mitigation and loan modification activities. All loan modifications must comply with the program requirements of the agency that insures or guarantees the loan and must be executed by the loan servicer.  The agencies operate through loan insurance or guaranty programs that back up the borrower’s obligation to pay the mortgage loan at the loan level.  Those agencies are listed in the table below.  Insuring/Guaranteeing Agency

Phone number

Federal Housing Administration 888-297-8685

Veteran Affairs 877-827-3702

Rural Development 800-670-6553

Public and Indian Housing 800-561-591

 

Members (24)

 
 
 

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