Page 58 - May-June 2018 GSE Report Flip Book

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FHA Commissioner Brian Montgomery also feels “very strongly” about the need to update
the agency’s computer system. “Whether as you think about the future you would put relatively more importance on getting borrowers into homes and having access to credit through FHA, or whether you would be relatively more concerned about the risks the ... program might present the taxpayers ... the case for the modernization of FHA I think is compelling on both sides of that,” said Montgomery. (American Banker, Hannah Lang, 06/18/18)
Ginnie Mae is developing digital collateral capabilities
Ginnie Mae is planning a pilot program that will securitize digital mortgages as early as 2019, according to the agency’s report Ginnie Mae 2020. The agency wrote:
Our approach will allow us to gradually implement policies and systems that fully incorporate digital mortgages into Ginnie Mae’s business model. The business model we envision will allow Issuers to securitize digital promissory notes that are executed on a uniform smart document format, with elements and specifications like the SMART Doc format used by the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac. The desired format will leverage MISMO standards to facilitate integration and data exchanges. The use of a specified uniform format will also enable Ginnie Mae to replace manual processes with automated system-based solutions and streamline the initial certification process for loan packages that contain digital mortgages.
While we engage in the technical work necessary to promulgate the standards applicable to electronic closings, digital instruments and electronic vaults, we will also work with
the housing programs we support to standardize policies and any other origination requirements for digital mortgages. We will also work closely with the GSEs to benefit from their experience with digital mortgages and to ensure our solution can easily be adopted by Issuers already using similar technology for conventional loans. We believe aligning policies across federal housing programs and developing technical standards are foundational steps; they will be our priority during the initial stages of our digital collateral strategy.
We aim to complete these foundational steps by 2019 and then authorize pilot programs enabling Issuers to securitize digital mortgages, even as we continue to develop other aspects of our Digital Collateral Strategy. The pilot programs will enable us to test our approach, optimize processes and arrive at a strategy that promotes large-scale adoption.
Something to note about the business model we are contemplating as part of a pilot approach is that it would prohibit Issuers from commingling digital mortgages with
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