Ginnie Mae pauses delinquency rules amid FHA waterfall shift

Date:

Share post:


Government mortgage-backed securities guarantor Ginnie Mae announced that it’s changing how it will be tracking delinquencies in monthly issuer reporting to account for impacts from a rule update.

Processing Content

To address the uptick in a large number of older loans entering trial payment plans as a result of the Federal Housing Administration’s adjustment to a “waterfall” of procedures for delinquent borrowers, Ginnie is asking issuers to mark these mortgages with a default action code.

“Ginnie Mae will temporarily exclude loans on TPPs when calculating delinquency ratios for compliance purposes,” the government guarantor said in an All Participant Memorandum issued Friday afternoon.

The exclusion is effective for monthly reporting due April 2. Ginnie plans to provide at least 60 days notice before returning to standard delinquency reporting, and may consider changes to its threshold requirements.

FHA Commissioner Frank Cassidy had identified the post-pandemic waterfall change made in October as the driver of a short-term increase in delinquencies earlier this year. FHA mortgages are a major loan type in Ginnie securitizations.

Cassidy has been on leave with Ginnie President Joe Gormley temporarily filling both roles.

Ginnie’s Global Market Analysis report recently examined the impact of the FHA change by examining changes in delinquency rates between October 2024 through September 2025, and comparing them to what’s happened since the new waterfall started.

Delinquency rates between October 2025 and February 2026 were little changed from the previous year for 30 and 60-day arrears inching up by less than 10 basis points while those that ran three months jumped by more than a percentage point.

The waterfall change required borrowers who previously could repeatedly request partial claim relief under pandemic rules without a TPP to now go through a trial payment plan if still distressed. Borrowers now also have limits on how often they can request relief.



LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

Why AMD Stock Surged Today

Shares of Advanced Micro Devices (AMD +13.85%) popped on Friday, following positive analyst commentary. Image source: Getty Images....

Best MBA Student Loans To Pay For Business School

Key PointsMBA students can access both Direct Federal Loans and Private loans to pay for school.Starting in...

Netlist director Jun Cho sells $41,600 in company stock

Netlist director Jun Cho sells $41,600 in company stock

‘Spray and Pray’ Is the New Go-To for Job Seekers (and Employers Are to Blame)

Editor's Note: This story originally appeared on Monster. Monster’s latest Job Application...