Ginnie Mae has approved mortgage fintech platform BSI Financial Services as both an eIssuer and eSubservicer under its digital collateral program, the company announced Wednesday.
The approvals expand BSI's ability to support
"The Ginnie Mae approvals reflect the work we've done to build the technology, operational controls and expertise needed to support digital mortgage assets," said Gagan Sharma, founder and CEO of BSI, in the release. "They strengthen our ability to serve clients as the adoption of eNotes continues to grow."
As an approved issuer and subservicer, BSI is authorized to create Ginnie Mae eNotes and loan packages, as well as service loans held within them. Digital mortgage adoption continues to accelerate, and financial institutions increasingly need servicing partners that can manage digital collateral throughout the mortgage lifecycle, according to the release.
During the approval process, Ginnie Mae evaluated BSI's operational processes and transaction testing for managing digital collateral. The company also had to demonstrate its ability to perform transactions involving eNotes through the MERS eRegistry, the mortgage industry's record for holders of eNotes. This included transfers of servicing, loan modifications, assumptions and other servicing events required under the digital collateral program, the release said.
The program enables the securitization of eNotes, supports digital collateral infrastructure and permits commingling with traditional paper loans. It also includes tools for remote notarization, digital signatures and more, according to Ginnie Mae's website.
The agency
"The expansion of the digital collateral program to the PIIT program will promote wider adoption of digital lending by providing increased flexibility to e-issuers," Ginnie Mae President Joseph Gormley said in a press release in January.
Prior to BSI's approvals, 55 eIssuers, including United Wholesale Mortgage, Rocket Mortgage and CrossCountry Mortgage, and 12 eSubservicers were program participants.
BSI, which currently services nearly $50 billion in mortgages, is approved as a servicer by Fannie Mae, Freddie Mac, the Federal Housing Administration, the U.S. Department of Veterans Affairs and the U.S. Department of Agriculture.
The company announced last year it
"The approvals allow us to serve clients whose portfolios increasingly include Ginnie Mae digital collateral and eliminate the need for those clients to seek separate servicing providers based on collateral type," Sharma told National Mortgage News. "As more lenders and investors adopt digital collateral, we can now provide subservicing and MSR acquisition services regardless of whether the loans are backed by paper notes or eNotes, or both."
