Ginnie Mae Issues Blog Post on Upcoming Servicer Liquidity Facility

On March 27, 2020, Ginnie Mae issued a blog post addressing servicer liquidity concerns.  Specifically, Ginnie Mae noted that it would be creating “a Pass-Through Assistance Program (PTAP) through which issuers with a P&I shortfall may request that Ginnie Mae advance the difference between available funds and the scheduled payment to investors.”  Ginnie Mae expects to issue an All-Points Memorandum in the next two weeks to implement this program, and anticipates issuing a similar program for HMBS and Multifamily issuers shortly afterwards as well. 

Ginnie Mae specifically notes that, while the advancement of funds by Ginnie Mae during a federally-declared emergency would ordinarily be considered a default, given the geographic scope of the COVID-19 crisis, use of the PTAP will not be considered a default.  All other requirements will still apply, and the advances will be subject to repayment terms and conditions.