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 Ginnie Mae-backed digital mortgage assets across securitization and servicing, which reinforces the company's commitment to technology-driven mortgage operations, the release said.

"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 expanded the program earlier this year, announcing mortgage-backed securities funded by eNotes can be included in Pools Issued for Immediate Transfer. PIIT status allows pools to be moved to qualified parties immediately upon issuance.

"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 turned to automation to handle draws, foreclosure tracking, investor reporting and compliance.