Ginnie Mae recently announced that it will permit the issuance of mortgage-backed securities (MBS) backed by mortgage loans documented using electronic promissory notes (eNotes) under its Pools Issued for Immediate Transfer (PIIT) program beginning February 1, 2026. The PIIT program is a “co-issue” program that allows loan originators to pool loans with Ginnie Mae, and simultaneously transfer the issuer and servicing responsibility to a purchaser of the related servicing rights. Loans backed by eNotes are a quickly growing part of the residential lending market – in its announcement Ginnie Mae states that since it began accepting digitally backed loans (the pilot program launched in 2020) at least $92 billion dollars in eNote backed assets have been included in Ginnie Mae MBS, with over 50 issuers participating in the program. Until now, however, Ginnie Mae was unable to accommodate eNotes in the PIIT program. Fannie Mae and Freddie Mac already have co-issue programs for the purchase and pooling of loans backed by eNotes.Continue Reading Ginnie Mae Accommodates Further Use of eNotes
Mortgage Loans
SEC Seeks Input on Modernizing RMBS Disclosure Requirements and Enhancements to ABS Registration to Revitalize Public Securitization Market
The Securities and Exchange Commission (SEC) has published a concept release inviting public comment on potential reforms to disclosure requirements for residential mortgage-backed securities (RMBS) in the registered asset-backed securities (ABS) market. The initiative aims to address longstanding concerns that current rules, particularly those under Item 1125 of Regulation AB, have stifled public issuance of…
New Disclosure and Other Requirements for Shared Appreciation Agreements Take Effect in Maryland
By Holly Spencer Bunting on
Maryland regulations governing “shared appreciation agreements” become effective November 25, 2024. After the Maryland Commissioner of Financial Regulation proposed regulations governing required disclosures for shared appreciation agreements in July 2024, the regulations were finalized on October 30, 2024, with no substantive revisions.
As a reminder, a “shared appreciation agreement” is defined for purposes of Maryland’s Credit Grantor mortgage laws as “a writing evidencing a transaction or any option, future, or any other derivative between a person and a consumer where the consumer receives money or any other item of value in exchange for an interest or future interest in a dwelling or residential real estate, or a future obligation to repay a sum on the occurrence of an event such as: (1) the transfer of ownership; (2) a repayment maturity date; (3) the death of the consumer; or (4) any other event contemplated by the writing.”
Below is a summary of the final regulations governing shared appreciation agreements. Continue Reading New Disclosure and Other Requirements for Shared Appreciation Agreements Take Effect in Maryland
Treatment of Mortgage Loans and Mortgage Servicing Rights Under the Hart-Scott-Rodino Act
Transactions involving the purchase and sale of residential mortgage loans and mortgage servicing rights (“MSRs”) frequently raise the question of whether they require submitting premerger notification filings to the Federal Trade Commission and the Department of Justice under the Hart-Scott-Rodino (“HSR”) Act. This Legal Update provides an overview of how residential mortgage loans, MSRs and…