PTAP/C19 – The “Last Resort” for Ginnie Mae Issuers Facing a Liquidity Crunch

Residential mortgage loan servicers, trade associations and various members of Congress have been urging the Department of Treasury and the Federal Reserve Board to provide a dedicated servicing advance facility.  On April 10, 2020, Ginnie Mae did just that, announcing the terms of its much-anticipated Pass-Through Assist Program for Issuers of mortgage-backed securities that are in need of funding for the increased amount of servicer advances due to the COVID-19 pandemic.  Referred to as “PTAP/C19” for short, according to Ginnie Mae this program will “support Issuers in their administration of borrower relief measures, such as extended forbearance and moratoriums on foreclosures and evictions, announced by the federal agencies providing the mortgage insurance or guaranty.”

Read more in Mayer Brown’s Legal Update.