Ginnie Mae introduces liquidation‑event reporting; testing begins and mandatory rule expected in Q2

Ginnie Mae outlined a new liquidation event reporting (LER) requirement and the testing and implementation timeline.

Norma Freshard (senior IT project manager) said LER, described in APM 25‑7 and tied to MBS Guide chapter 17 and Appendix 6‑24, requires single‑family issuers to submit data using an L record that contains only fields relevant to a liquidation when a liquidation occurs; there is no change to the issuer's monthly pool/loan report. "LER must be received by Ginnie Mae no later than 5AM eastern time on the following business day," Freshard said.

Rob Worley (CX lead) explained why Ginnie Mae is implementing LER: to provide more timely, accurate information on collateral supporting Ginnie Mae‑guaranteed MBS and to help Ginnie Mae support issuers if they miss reporting obligations. He said testing with service bureaus started in November, issuer testing continues through February, issuers can start reporting as soon as Feb. 3 after successful testing, testing is expected to close Feb. 26, and Ginnie Mae intends to make LER mandatory in Q2 pending completion of testing and paperwork reduction review. "We are asking that you start reporting as soon as February 3," Worley said.

Ginnie Mae said it will publish training recordings, FAQs and modernization bulletins and will provide timelines and resources for testing. Presenters emphasized issuers should begin testing now to be ready before LER becomes mandatory.