APM 26-08: Clarification of Re-Performing Loan Seasoning Requirements

To support Agency and Issuer loss mitigation efforts, Ginnie Mae is revising its guidance on Re-Performing Loans to clarify that the seasoning period required by Ginnie Mae prior to repooling delinquent loans and Agency-approved Trial Payment Plan (TPP) may run concurrently and would not be required to be consecutive.

Ginnie Mae currently allows Re-Performing Loans to be securitized if, among other requirements, the borrower has made Timely Payments for the three (3) months immediately preceding the issuance month associated with the Mortgage-Backed Security (MBS), and the MBS Issue Date is at least 120 days from the last date the loan was delinquent.  This was intended to address loans that re-performed without loss mitigation assistance pursuant to the Insuring or Guarantying Agency’s guidance.  Loans that reinstate through the execution of a standalone partial claim also re-perform on the original terms, but they are still considered delinquent until the partial claim is executed.  

Therefore, Ginnie Mae is revising its Re-Performing Loan guidance in Chapter 18, Part 3, Section B(6)(c)(iv) of the Ginnie Mae Mortgage-Backed Securities Guide to reflect that loans previously bought out of Ginnie Mae MBS that are subject to a TPP prior to receiving a standalone partial claim are eligible if the TPP is at least three (3) months; the borrower successfully completes the TPP; and that when the loan is repooled, the Issue Date of the MBS is at least 120 days from the first payment due date under the TPP.  Essentially, the TPP is serving the same purpose as the seasoning requirement, therefore they may run concurrently.

This guidance is effective for loans entering Trial Payment Plans on or after October 1, 2025.  If you have any questions regarding this announcement, please contact your Account Executive or Mortgage Banking Analyst in the Office of Issuer and Portfolio Management or contact Ginnie Mae’s centralized help desk at askGinnieMae@hud.gov.