What Do I Need to Do to Begin Issuing Ginnie Mae Securities Backed by Reverse Mortgages?
If you are already an approved Ginnie Mae issuer, all you need to do is demonstrate to Ginnie Mae’s satisfaction that you have a full-time staff with reverse mortgage origination and servicing experience and either the capability to perform participation accounting or an arrangement with a third party that can perform it for you. Participation accounting involves tracking and reconciling each security back to the individual draws on the reverse mortgage loans that serve as collateral to the security. Also, issuers must obtain a separate issuer identification number from Ginnie Mae and have a minimum net worth of $500,000. If you are not already an approved Ginnie Mae issuer, you need to go through the issuer approval application process, which is outlined in Chapters 2, 7 and 35 of the Ginnie Mae MBS Guide. You can find the Guide on Ginnie Mae’s Web site at www.ginniemae.gov. More details on the opportunities available to lenders that want to participate in Ginnie Mae’s HMBS program an
