Ginnie Mae Releases New COVID-19 Pass-Through Assistance Program
On Friday, Ginnie Mae released its promised Pass-Through Assistance Program related to COVID-19 (PTAP/C19). Under the program, Ginnie Mae will provide pass-through payments to single-family issuers who request assistance if they are facing a temporary liquidity shortfall directly attributable to the national COVID-19 emergency. The PTAP/C19 is intended to be used as a “last resort” and requires an issuer to send a Request and Repayment Agreement, a signed statement articulating the issuer’s previous efforts to obtain private financing or other assistance for the subject shortfalls and the issuer’s plan for repaying any funds advanced by Ginnie Mae, and a Master Supervisory Agreement the first time the issuer accesses the program. Subsequent PTAP/C19 requests will also require supporting documentation.
Under PTAP/C19, requesting and receiving assistance will not constitute a basis for issuer default, a request NCSHA made in its March 25 letter urging Ginnie Mae to use its existing authorities to meet the liquidity needs of state HFAs and others as they continue to work to assist homeowners affected by COVID‐19 across the United States.
Ginnie Mae will notify the issuer in writing with its approval or rejection of the assistance request no later than one business day prior to the date the corresponding monthly remittance payment is due. If approved, Ginnie Mae will execute the Request and Repayment Agreement, provide a copy of the agreement to the issuer, inform the issuer in writing that its request has been approved, and deposit the approved payment amount via ACH transfer directly into the issuer’s Central P&I Custodial Account.
Assistance advanced by Ginnie Mae will bear a fixed rate of interest. The applicable interest rate will be posted on Ginnie Mae’s website on the second business day of each month. Repayments must be paid in full to Ginnie Mae on the earlier of (i) the date that is the last day of the month that is seven months from the month in which the Request and Repayment Agreement was approved by Ginnie Mae or (ii) July 30, 2021.