Ginnie Mae Streamlined Document Requirements for FHA Advance Loan Modifications

Recently, Ginnie Mae published an all participant memorandum (APM), which provided guidance that would eliminate the requirement for recordation and title insurance for FHA advance loan modifications (ALMs).  This guidance came in response to the difficulties Issuers experienced with complying with both FHA and Ginnie Mae requirements associated with ALMs.  With a few exceptions, this new guidance is applicable to all ALMs, including those executed prior to the publication of the APM.

The streamlined documentation requirements for ALMs will sunset with June 1, 2023, pool issuances and ALMs in pool issuances on or after July 1, 2023, must meet Ginnie Mae’s standards and requirements for recording and title insurance.