Ginnie Mae is assuring its stakeholders that the agency will continue to operate during the midst of the partial shutdown of the federal government.
In a statement issued by the agency
, Ginnie Mae stated that it would continue to approve commitment authority and continue to process pools and guarantee securities for as long as the shutdown continues, adding that issuers will continue to make pass-through payments to investors and all operations related to payment of principal and interest will remain on schedule.
“During a lapse in government funding, Ginnie Mae will reduce staffing to essential personnel levels,” the agency said. “Importantly, Ginnie Mae will continue to remit timely payment of principal and interest to investors. There will also be no disruption of essential functions like the granting of commitment authority and support for continued issuance of Ginnie Mae-guaranteed Mortgage Backed Securities (MBS) and REMICs.”
Ginnie Mae added that its MBS program carries “the full faith and credit of the United States government” and its guaranty will be honored even with the shutdown.