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2023-KC-0003-001-C
Status
Abierta
Date Issued
Marzo 28, 2023
OIG Component Office
Audit

Update its Policies and procedures to define how Ginnie Mae will determine the portfolio value and price before Sale.


Status

As of October 2023, Ginnie Mae planned to update its valuation models, timing, and pricing strategies within its rapid relocation procedure. The final action target date is May 30, 2024.


Analysis

To fully address this recommendation, Ginnie Mae must provide evidence that it has updated its policies and procedures to define how it will determine the portfolio value and price before sale. Ginnie Mae stated that it is currently on track to fully address the recommendation on time.

Implementation of this recommendation will result in Ginnie Mae more effectively protecting its portfolio.

Program Office
Government National Mortgage Association
Questioned Costs
$0.00
Better Funds Use
$0.00
Publication Report Number
2023-KC-0003

Related Recommendations

Recomendation Status Date Issued Summary
2023-KC-0003-001-A Cerrado Marzo 28, 2023

Update its policy and procedures to define its authority for marketing troubled issuer portfolios and the conditions that must exist to extinguish issuers using rapid relocation.


Status

As of October 2023, Ginnie Mae planned to incorporate more detailed guiding principles within the default strategy procedures clarifying selection criteria for each termination or extinguishment method, specifically rapid relocation. Ginnie Mae also plans to offer additional training to its employees. The final action target date is May 30, 2024.


Analysis

To fully address this recommendation, Ginnie Mae must provide evidence that it has updated and implemented its policies, procedures, and training to clearly define its authority for marketing troubled issuer portfolios and the conditions that must exist to extinguish issuers using rapid relocation.

Implementation of this recommendation will result in Ginnie Mae more effectively protecting its portfolio.

2023-KC-0003-001-B Abierta Marzo 28, 2023

Update its policy and procedures to define what type of information Ginnie Mae may disclose and how it will handle protected information before extinguishment.


Status

As of October 2023, Ginnie Mae planned to incorporate the existing Ginnie Mae Confidential Information Policy into its Default Playbook and identify and log information that can be selectively shared in rapid relocation execution. The final action target date is May 30, 2024.


Analysis

To fully address this recommendation, Ginnie Mae must provide evidence that it has updated its policies and procedures to define what type of information it may disclose and how it will handle protected information before extinguishment. Ginnie Mae stated that it is currently on track to fully address the recommendation on time.

Implementation of this recommendation will result in Ginnie Mae more effectively protecting its portfolio.

2023-KC-0003-001-D Abierta Marzo 28, 2023

Update its policies and procedures to define 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.


Status

As of October 2023, Ginnie Mae planned to incorporate impact analysis evaluation of each prospective buyer to confirm compliance post-transfer. This will include key portfolio indicators and will mirror similar activities currently performed on select standard pool transfer participants. The final action target date is May 30, 2024.


Analysis

To fully address this recommendation, Ginnie Mae must provide evidence that it has updated its policies and procedures to define how it intends to identify and evaluate prospective buyers to ensure its ability to absorb the extinguished portfolio before executing the purchase and sale agreement. Ginnie Mae stated that it is currently on track to fully address the recommendation on time.

Implementation of this recommendation will result in Ginnie Mae more effectively protecting its portfolio.

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.