systemoverview.ppt

Ginnie Mae Systems Overview

Integrated Pool Management Concept of Operations Ginnie Mae Proprietary Systems Bank of New York Proprietary Systems Other Ginnie Mae Systems Maintained by other contractors

IPA

MBSIS

GMEC

New Issuer Module IPMS – New Pool Processing Module IPMS – Pool Reporting Module Fed Interface Automated Clearing House Unclaimed Funds System GinnieNET Network Custodian Issuer

Multifamily Database

Master Agreement Database

Platinum Database

REMIC

Database

IPMS – Central Registry Module

Pool Transfer Module

Letter of Credit Module

Ginnie Mae Website

Ginnie Mae Website

Ginnie Mae Proprietary Systems IPMS Interfacing Modules

Other Ginnie Mae Proprietary Systems

Bank of New York Proprietary Systems Interfacing Modules

New Issuer Module PC based tracking, review, and approval module for Ginnie Mae Issuer applications

Used by Ginnie Mae staff

Interface to IPMS is batch via Connect Direct*

Maintenance and Upgrade

*Connect Direct is a software product from Sterling Commerce which facilitates file transfers

IPMS – New Pool Processing Module Mainframe (batch and online) application that:

Maintenance and Upgrade

GinnieNET

and Central Paying and Transfer Agent (CPTA) and the Mortgage-Backed Securities Administration Agent

*Connect Direct is a software product from Sterling Commerce which facilitates file transfers

Master Agreement Module A PC based application that:

are updated from GinnieNET

Multifamily Database Module Consists of two methods of access:

A PC module which is updated by IPMS and shares common data with the Web application. Interface is via Connect Direct* from the mainframe

Web application that allows brokers and the public to view and query Multifamily Mortgage Backed Securities pool information

Maintenance and Upgrade

IPMS – Pool Reporting Module Mainframe (batch and online) application that:

and Platinum Pools Calculates and generates Ginnie Mae I and Ginnie Mae II Guaranty Fee ACH collections

Maintenance and Upgrade

IPMS - Central Registry Module Mainframe (batch and online) application that:

Maintains all of Ginnie Mae MBS certificate/book entry positions and security holders Allows posting of the original issuance certificates/book entry positions and the automatic validation of certificate transfers

Maintenance and Upgrade

Unclaimed Funds System PC based system that:

Tracks all Ginnie Mae I unclaimed P&I funds received from issuers

Tracks all Ginnie Mae II unclaimed funds from investor checks

Updated to reflect release of funds to investors

Maintenance and Upgrade

Pool Transfer Module PC based system that:

Processes requests from issuers for transfer of servicing rights from one Issuer to another

Used by Ginnie Mae staff and contractor

Interface is batch via Connect Direct*

Maintenance and Upgrade

Letter of Credit Module PC based application that:

Creates, by Issuer, a report of delinquent pool final certifications and recertifications

Calculates tolerance levels based on Ginnie Mae policy

Reports are generated and mailed

LOC is posted, recorded and tracked

IPMS interface is batch via Connect Direct*

Maintenance and Upgrade

REMIC Database Module

Web based application which allows investors to query and view published Ginnie Mae REMIC information

Interface is via Connect Direct* to/from IPMS

Maintenance and Upgrade

Ginnie Mae Web Site Provides an additional method of communication with Ginnie Mae stakeholders

Used to launch Multi-family Database, REMIC and Platinum Securities Search Pages

Houses a rolling thirteen month pool RPB, principal and interest payment factor, OID and MDF data

Maintained by Ginnie Mae’s Mortgage-Backed Securities Administration Agent

Ginnie Mae Enterprise Contact System

(GMECS)

Maintains all of Ginnie Mae’s contact information enterprise-wide

Is the database of record for all contact data

Is accessible via the internet by all systems and entities that require access to contact information

Maintained by Ginnie Mae’s Mortgage-Backed Securities Administration Agent

Web based application that:

Fedwire Interface A Bank of New York Mellon proprietary system that is used to create Fedwire securities transfer messages and sends delivery instructions to the Federal reserve Bank

(“Fed”) for free delivery of securities settlement.

A method of transmitting bulk data to the Fed

Transmission is via NDM* transmissions

*NDM (“Network Data Mover”) is a software product from Sterling Commerce which facilitates mainframe file transfers

Automated Clearing House (ACH) A nationwide funds transfer network which enables participating institutions (Issuers and CPTA) to distribute electronic credit and debit entries to bank accounts and settle such entries

IPMS interface is NDM*

*NDM (“Network Data Mover”) is a software product from Sterling Commerce which facilitates mainframe file transfers

Function 1 Process New Issuer Applications New applicants apply to Ginnie Mae to obtain authority to issue Ginnie Mae Mortgage Backed Securities

New Issuer Module New Pool Processing Module

New Issuer Module Add, update, approve and archive an application

IPMS - New Pool Processing Module

Function 2 Request and Approve Commitment Authority and Pool Numbers Approved Issuers must apply for commitment authority

Ginnie Mae approves commitment authority requests

Issuer must request pool numbers in advance and Pool Numbers Request, process, adjust delete, close out commitments

Adjust commitment fee

Request and release pool numbers

IPMS - New Pool Processing Module and Pool Numbers

Confirmation Letter for Pool Numbers Assigned Frequency Monthly, Quarterly

Function 3 IPMS – New Pool Processing Certification, review and approval of loan and pool documents

Issuance of securities

New Pool Processing Fedwire Securities Service Fedwire Interface Pool Reporting Module Central Registry Module New Pool Processing Module

Master Agreement Module

Multifamily Module

Ginnie Mae Website

GinnieNET Add, change or delete new pools

Manually enter or import loan details

Apply Ginnie Mae edits before transmitting to network

Must be authorized to submit pools to the network

Fingerprint verification

Targeted Lending

Custodian Certification

Master Agreement Module PC based module that maintains account information for the following Master Agreements:

IPMS – New Pool Processing Module Allows data entry of manual pools/Update file of GinnieNET electronic pools

Checks Master Agreements

Checks commitment authority, issuer status, pool numbers

Creates investor position on Central Registry

Add new pool to Pool Reporting Module

Release pools to Fed for delivery

Fedwire Interface Batch transmission (bulk data) to the Fed New Pools

Creates Fed wires with securities delivery instructions

Federal Reserve Bank Process new issue bulk data file

Update Securities Description Master file with CUSIP information

Send broadcast to Fedwire participants advising that new issues have been added

Multifamily Database Module

Provides Multifamily pool information for Project Loan Pools

Updated by IPMS

IPMS – New Pool Processing

Function 4 Remaining Principal Balance (RPB) Factor Reporting Processing Issuers report RPB for each pool/loan package

Factor Reporting Processing GinnieNET Pool Reporting Module FTP or NDM

Factor Reporting Processing GinnieNET Investor Reporting Module

Initial RPB Reporting

All RPB corrections

Multifamily prepayment penalties

Factor Reporting Processing IPMS – Pool Reporting Module Update current RPB from transmissions and GinnieNET

Manually update RPB

Edit RPB

Calculate MBS and Platinum Pool factors

Create Fed P&I Factor Files

Disseminate MBS and Platinum Pool factors

Factor Reporting Processing

Issuer Statistical Reports for Ginnie Mae Frequency Monthly

Function 5 Ginnie Mae I Depository Payment Calculation, ACH and Pre-Collection Notice Under the Ginnie Mae I MBS Program, Issuers accounts are debited by ACH for the P&I due to the Depository

Calculation, ACH and Pre-Collection Notice Pool Reporting Module Fedwire Interface Central Registry Module FRB Automated Clearing House Fedwire Securities Service

Calculation, ACH and Pre-Collection Notice IPMS - Pool Reporting Module Calculates pool P&I

Creates pre-collection notices based on the depository’s pro-rata share

Creates Fed ACH debit file

Calculation, ACH and Pre-Collection Notice IPMS – Central Registry Module Maintains all outstanding MBS securities

Nightly position reconciliation with the Depository

Calculates Depository’s pro-rata share of the pool

Reconciles payment with the

Calculation, ACH and Pre-Collection Notice FRB Automated Clearing House (ACH) ACH file transmitted to the Federal Reserve Bank via bulk data transmission for processing

Calculation, ACH and Pre-Collection Notice Federal Reserve Bank For Ginnie Mae I and Platinum

The contractor sends to FRB the P&I factor information for the Ginnie Mae I and Platinum securities with a payment date of the 15th of the month

For Ginnie Mae II and Platinum

The contractor sends to FRB the P&I factor information for the Ginnie Mae II and Platinum securities with a payment date of the 20th of the month

Calculation, ACH and Pre-Collection Notice Federal Reserve Bank On the business day before payment, contractor transmits via the Federal Reserve System ACH a pre-notification ACH settlement file for the Ginnie Mae I payment date of the 15th of the month

FRB verifies the credit amount on the ACH file to the payment amount appearing on the debit P&I notification advice FRB generated after processing the Ginnie Mae I P&I factor file for the payment date of the 15th of the month

Calculation, ACH and Pre-Collection Notice Federal Reserve Bank FRB processes the P&I factor file and faxes an error report of factor and par balance holdings discrepancies to the contractor for their input in resolving discrepancies.

Contractor investigates the errors and faxes their response by noon that day.

FRB processes the changes and creates a debit reconciliation file (debit P&I notification) which is delivered to the contractor via bulk data. During the same process, the credit P&I notifications are created and delivered to the holder of record of the securities.

Calculation, ACH and Pre-Collection Notice

Function 6 Ginnie Mae II ACH and Pre-Collection Notice Under the Ginnie Mae II MBS Program, Issuers are required to deposit into a custodial account funds sufficient to enable the Central Paying and Transfer Agent (CPTA) to make payments to security holders

Pool Reporting Module Automated Clearing House

IPMS – Pool Reporting Module Calculates the pool P&I

Creates pre-collection notices

Creates and transmits ACH file

Automated Clearing House (ACH) Debit Issuers’ account and credit P&I account at the CPTA

Function 7 Collection of Ginnie Mae I and II Guaranty Fee Issuers are required:

to pay a monthly guaranty fee to Ginnie Mae for each pool maintain accounts for guaranty fee payments

Automated Clearing House

IPMS – Pool Reporting Module Calculates the guaranty fee for both Ginnie Mae I and Ginnie Mae II pools

Creates ACH file

Automated Clearing House (ACH) Debits issuers’ accounts for the amount of Guaranty Fee for both Ginnie Mae I and Ginnie Mae II pools

Function 8 Central Registry and Payment Functions Repository of all Ginnie Mae pool, security and investor data

Under Ginnie Mae II Program, Issuers make P&I funds available to the CPTA for payment to security holders by the 20th calendar day

Annual tax reporting for Ginnie Mae II

Ginnie Mae I emergency payments

Automated Clearing House Pool Reporting Module Central Registry Module Unclaimed Funds System

IPMS - Central Registry Calculates investor’s pro-rata share of the pool P&I

Creates checks and vouchers

Unclaimed Funds System Tracks payment information of un-cashed checks for both Ginnie Mae I and Ginnie Mae II investors

Function 9 Collection and Dissemination of Financial Data RPB Factor dissemination

Monthly accounting reports (11710D) are submitted through GinnieNET

Quarterly Issuer Certifications are submitted through GinnieNET

Weighted average and geographic data is disseminated

MBSIS

SECTOR Inc All other recipients GinnieNET Function 9 Collection and Dissemination of Financial Data

GinnieNET Form HUD 11710D and Quarterly Certifications

Form HUD 11714 and 11714SN

RPB Collection

IPMS – Pool Reporting Module Maintain current and prior RPBs and factors

Calculates weighted average and geographic data for new pools

Function 10 Transfer of Servicing Issuers must submit request to Ginnie Mae for transfer of servicing

Ginnie Mae approves request and processes transfers

Pool Reporting Module

New Pool Processing Module

Pool Transfer Module

Pool Transfer Module Input of Issuer request

Calculate transfer fee

Ginnie Mae approves request

Creates approval letter

New Pool Processing Module Check transfer eligibility status of pools and Issuer

On the transfer effective date, pools purchased are reassigned to the purchasing Issuer’s portfolio

IPMS – Pool Reporting Module Reassign pools

Calculates recertification due dates

Function 11 Final Certification and Recertification Letter of Credit Ginnie Mae requires all pools to be certified within 12 months of pool issuance or servicing change

Issuer must post Letter of Credit if Issuer fails Ginnie Mae’s pool/loan threshold

Letter of Credit Letter of Credit Module GinnieNET

Pool Reporting Module

Letter of Credit GinnieNET Process and submits Final Certifications and Recertifications to IPMS electronically

Letter of Credit IPMS – Pool Reporting Module Updates pool certification or recertification information

Tracks certification delinquency status

Letter of Credit Letter of Credit Module Monitors delinquent pools and loans

Generates delinquency letters

Calculates LOC requirements

Letter of Credit

Function 12 Certificate Transfers Security holder re-registration of Ginnie Mae certificate due to trade of security or loss or damaged certificate

Deposits or withdrawal to/from the Depository

Central Registry Module

Fedwire Securities Service

Fedwire Interface

IPMS - Central Registry Module A repository of all Ginnie Mae security holders

Contains all open and cancelled securities

Function 13 Platinum Processing

Calculate Platinum Factors

Update Platinum Search Page on the Web

Pool Reporting Module Central Registry Module

Fedwire Interface

Fedwire Securities Service

Platinum Database

IPMS – Pool Reporting Module Contains all Platinum Pools and the underlying MBS pools

Interfaces with the Platinum Search Page on the Web

Federal Reserve Bank Maintains 20 Limited Purpose Accounts (“LPA”) to support Platinum issuance

Fax collateral balances in the LPA to the contractor so that Trust Receipts can be created prior to Platinum issuance

Credits the paying agent account for the MBS pools and debit that account to pay the Platinum security holders

Function 14 REMIC Information Agent Receive REMIC files from participants

Update REMIC Database

Update REMIC Search Page on the Web

Reconcile REMIC collateral at the

Pool Reporting Module

* Via Connect Direct from mainframe, Web access *Connect Direct is a software product from Sterling Commerce which facilitates file transfers

Fedwire Interface

Fedwire Securities Service

REMIC

Database

IPMS – Pool Reporting Module Contains data on all REMIC issuances

Interfaces with the REMIC Search Page on the Web

Federal Reserve Bank Each trustee sends new issue and P&I factor information to the Fed

Each trustee is responsible to fund its paying agent account by 9 am ET on payment date

Each trustee holds underlying securities in a limited purpose account

(LPA)