U.S. flag

An official website of the United States government Here’s how you know

The .gov means it’s official.

Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

The site is secure.

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.


We identified gaps in Ginnie Mae’s guidance and process for troubled issuers.  Ginnie Mae made progress in developing an issuer default governance framework, but has not (1) defined its authorities for marketing troubled portfolios; (2) formalized guidance for how to identify potential buyers before extinguishment; (3) established expectations for determining portfolio value, price before sale, and evaluation against other options or (4) included a step to evaluate prospective purchasers’ ability to absorb an extinguished portfolio.  Additionally, we found Ginnie Mae had implemented our previous recommendation to develop and implement controls to determine the total impact of a large- or multiple-issuer default, the maximum-size default Ginnie Mae could adequately execute, and individual issuers’ ability to adapt to changing market conditions, but there was a gap related to the semiannual capacity reports submitted by master subservicers (MSS).

Recommendation Status Date Issued Summary
2023-KC-0003-001-A Abierta Marzo 28, 2023 Define its authority for marketing troubled issuer portfolios and the conditions that must exist to extinguish issuers using rapid relocation.
2023-KC-0003-001-B Abierta Marzo 28, 2023 What type of information Ginnie Mae may disclose and how it will handle protected information before extinguishment.
2023-KC-0003-001-C Abierta Marzo 28, 2023 How Ginnie Mae will determine the portfolio value and price before sale.
2023-KC-0003-001-D Abierta Marzo 28, 2023 How Ginnie Mae intends to identify and evaluate prospective buyers to ensure its ability to absorb the extinguished portfolio before executing the purchase and sale agreement.
2023-KC-0003-002-A Cerrado Marzo 28, 2023 Assesses what information Ginnie Mae needs from the MSS to ensure that they have the capacity for a large- or multiple-issuer extinguishment.
2023-KC-0003-002-B Cerrado Marzo 28, 2023 Prescribes how the contracting officer representative will review information provided by the MSS and provide actionable feedback to ensure MSS readiness.