Ginnie Mae training stresses correct RFS reporting and HUD 11‑7‑10e timing; warns against misposting FHA claim funds
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Summary
Ginnie Mae presenters warned issuers not to post FHA claim funds as borrower payments in RFS, reviewed how to complete the HUD 11‑7‑10e liquidation schedule (including placement of curtailment lines and a negative curtailment adjustment), and explained that past curtailments can generate LIQ202 and LIQ153 exceptions.
Christy Christensen, the RFS presenter introduced during the session, told issuers: "Do not apply claim funds curtailment as payments in RFS." She demonstrated an incorrect example in which FHA claim funds totaling $975,184 were posted as payments and advanced the last installment date, and contrasted it with the correct approach (report full claim funds in the curtailment field, leave installment interest/principal as 0, and do not advance the last installment date).
Christy walked through the HUD 11‑7‑10e liquidation schedule and emphasized the required fields: 4‑digit Ginnie Mae issuer number, RFS report period, 6‑character pool number, loan FIC (PNI payment), 15‑digit case number, actual removal date, RFS loan type (e.g., FMF for FHA multifamily), and the removal reason (issuers should use reason code 3 when submitting reimbursement claims under the current processing practice).
She gave a worked example: when FHA claim funds of $4,690,318.23 are received and applied as curtailment, the RFS opening UPB after the curtailment becomes $400,380.70. Christy explained that when curtailments are reported in a past report period, the RFS liquidate‑loan screen will run the amortization schedule and typically generate LIQ202 and LIQ153 exceptions in the liquidation month because the system compares expected amortization totals to values derived from the 11‑7‑10e.
Michelle Murphy added a clarification on codes: staff are using removal reason code 3 for reimbursement claims "even though it's not a direct match" on the form, and recommended reconciling the FHA final settlement transmittal letter (final settlement date and unpaid principal balance) against the first line of the 11‑7‑10e as a processing check.
Practical takeaways from the training included: complete the 11‑7‑10e before reporting the liquidation in RFS; list the curtailment line after the payment due the month following the RFS report period; include a negative curtailment adjustment line after the final due date; and always use curtailment principal code 2 for claim funds when populating loan record fields described in appendix 6‑19.
The presenters urged issuers to save and summarize the pool in RFS after any loan‑level reporting to ensure the system captures changes.
