Ginnie Mae Streamlines FHA Advanced Loan Modification program
Summary
The Government National Mortgage Association, or Ginnie Mae, said late Friday that it has streamlined its documentation requirements for servicers participating in the Federal Housing Administrations Advanced Loan Modification (ALM) program. The new policy, effective for all ALMs — including those already in process or completed — supports the Biden-Harris Administration’s goal of assisting homeowners affected by the pandemic. “In order to fully stabilize the economy, servicers need as many tools as possible to help homeowners recover from the pandemic’s economic effects,” said Ginnie Mae President, Alanna McCargo. “This policy gives issuers clear guidance on how to move forward to help tens of thousands of FHA homeowners coming out of forbearance benefit from the FHA Advance Loan Modification.” Under the streamlined policy, the issuer is required to provide the following documentation to the Document Custodian: • Original fully executed Loan Modification Agreement, signed by all borrowers and in recordable form. Document custodians will not be required to verify that the ALM is recorded, unless the loan modification agreement contains provisions for assignment of leases or rents, or title insurance is present.