Ginnie Mae to allow comingling of digital and paper mortgage collateral starting June 1, 2024

Ginnie Mae announced it will permit the pooling of digital collateral with traditional paper collateral beginning with issuances dated June 1, 2024, a policy change the agency says will reduce transactional friction for lenders and broaden enote adoption across the mortgage market.

Lyn Chandler, Ginnie Mae’s digital collateral director, said the change follows rapid growth in the agency’s digital collateral pilot. “Less than 3 years later we have exceeded expectations and tripled the size of the pilot program with 26 fully approved e issuers, four e custodians and seven e subservicers,” Chandler said, adding that Ginnie Mae’s enote securitization has seen “month over month growth with over $38 billion now in portfolio.”

The policy—referred to in the video as "comingling"—will allow issuers to place electronic promissory notes and digitized loan files in the same pools as loans originated with paper promissory notes. Chandler said issuers have repeatedly requested the flexibility and that comingling will provide “the best execution,” create “internal efficiencies that will cut transaction cost,” and reduce uncertainty about whether a loan originated as an enote can ultimately be securitized.

Ginnie Mae framed the change as aiming to streamline operational processes. According to Chandler, digital collateral offers verifiable chains of custody, automated validations and improved data quality that can reduce manual work and shorten loan‑closing turn times. “Digital collateral presents a unique opportunity to enhance the integrity of collateral management while also offering issuers greater efficiencies, reduced costs and broadened access to credit without increased credit risk,” she said.

The announcement combines a program-status update with a policy implementation date. Ginnie Mae described the comingling change as a direct result of the pilot’s success and said it is part of a broader modernization effort to adopt technology that increases transparency and efficiency in securitization processes.

Details such as any implementation guidance, operational timelines for issuers to onboard to comingled pools, or supervisory changes were not specified in the video. The agency did not mention any formal vote or external approval process in the recording; Chandler presented the change as an agency deployment tied to issuances dated June 1, 2024.

What happens next
Ginnie Mae’s video states the comingling permission takes effect for issuances beginning June 1, 2024. Issuers and market participants seeking operational details or implementation guidance should look for formal Ginnie Mae notices or program documents for specifics on required systems, custodial arrangements, or disclosures.