On Monday, November 15, 2021, Ginnie Mae published guidance allowing loan servicers to leverage technology to support at-risk homeowners with FHA, VA, and USDA-backed loans. The flexibilities announced benefit loan servicers, homeowners, and Ginnie Mae in the shared goal of convenient, effective, and compliant loan modification agreements, including those established when exiting COVID-19 pandemic forbearances.
Understanding Ginnie Mae’s APM 21-07 announcement
Ginnie Mae’s announcement is effective immediately and includes specific provisions to accept eSignatures and RON sessions for all approved Issuers.
For any Issuer participating in the Digital Collateral Program through Ginnie Mae, yesterday's announcement also allows eIssuers to use RON where the promissory note is an eNote subject to notarization requirements in the program.
For all other Issuers, if the promissory note still complies with existing signature requirements and the loan modification agreement adheres with the recording specifications of the appropriate jurisdiction, the Issuer can leverage eSignatures with clear evidence of eSign compliance as well as RON.
Acceptable proof includes consumer consent and the ability to capture an audit trail and log documenting the execution of the loan modification agreement.
The positive impacts of going digital
One of the most critical issues for any homeowner struggling to make their monthly mortgage payment and those already approved for a loan modification is eliminating further disruption to their day-to-day life.
Honoring homeowners’ time is critical. However, loan servicers can’t afford to risk compliance, timelines, and requirements to ensure the best experience possible. Strict timing and adherence control the process, and missing deadlines or check-points can cost both the homeowner and servicer.
Often relying on overnight shipping, U.S. mail, and other consumer communication systems that require printing, signing, notarizing, scanning, and re-shipping, loan servicers can struggle to ensure all-important timelines and signing requirements are met. With the adoption of digital for loss mitigation, loan modification, and foreclosure, loan servicers can prioritize the most efficient way to finalize and execute loan modification agreements by offering convenient solutions like eSign, remote notarization, and secure video meetings. Using digital tools and capabilities supports the homeowner and the loan servicer by eliminating delays and pesky oversight that can derail the entire loan modification process, or at the very least, require reproducing and resending a package multiple times.
Thanks to Ginnie Mae’s forward-looking, digital-first guidance, more American homeowners can quickly and conveniently access the loan solutions offered by their loan servicers, saving time, lowering risk, and achieving some peace of mind.
The only digital platform built for eClosing loan modifications
Ginnie Mae Issuers and eIssuers can take advantage of Ginnie Mae’s guidance as early as today with Stavvy. Additionally, while the Ginnie Mae updates may still result in “papering out” loan modification agreements for some Document Custodians or recording entities, the vast majority of loan servicers and homeowners can take advantage of the convenience and compliance of eSign and RON now too.
Stavvy was built to optimize loan servicing workflows, including loan modifications and foreclosure proceedings. The fully integrated digital platform provides loan servicers with intuitive, all-digital tools for eSigning and remote online notarization, as well as scheduling, secure video conferencing, document management, an eRecording integration with Simplifile, and audit trails. These industry-specific capabilities help you keep at-risk homeowners fully informed while preventing the delays and errors associated with a process dictated by paper, compliance, shipping uncertainty, and wet signatures.
Additionally, having conducted eModifications with other approved loan programs, like Fannie Mae and Freddie Mac, Stavvy is the only digital technology provider that has built a loan modification workflow specifically for Ginnie Mae eligible loan servicers and subservicers.
Learn more about how Stavvy supports loan servicing.
Stavvy is here to help you enhance your workflow with eSignature and RON
At Stavvy, we know that delegating to digital empowers teams to be more efficient and, most importantly, ensures homeowners have the optimal outcome, which as a result, protects your assets and records. If you’ve been waiting for a sign to introduce an industry-specific digital tool into your workflow, this is it. Now is the time, and Stavvy is here to help.
If you’d like to learn more about the Stavvy platform, delegating to digital, or are interested in adding eSignature and RON into your unique loan servicing workflow, contact Stavvy today. Our team is more than happy to answer any questions you may have and walk you through our product demo.