Ginnie Mae announced its plans to change liquidation reporting requirements in a move that aligns its policies more closely with the government-sponsored enterprises and mortgage-market participants. 

The change serves to enhance operations and improve accuracy and timeliness of liquidation event data, which are used to help determine payments tied to Ginnie Mae's mortgage-backed securities. Among liquidation reporting events covered by the rule are foreclosure and short sales, deed-in-lieu transfers and third-party payoffs. 

Updated policy will advise issuers must submit liquidation-event reports to the government-backed mortgage insurer one business day after the transaction occurs rather than in a single-batch monthly submission that includes all new cases. Ongoing reporting is already required at government-sponsored enterprises Fannie Mae and Freddie Mac. 

"This important initiative will reduce the need for issuers to have different but parallel processes for liquidation event reporting," said Ginnie Mae executive vice president and chief operating officer Joseph Gormley in a press release. 

Implementation of the new rule is scheduled to begin in February 2026. Prior to that date, Ginnie Mae plans to conduct testing and training activities with issuers before officially introducing the new requirement. Further details, including submission processes, will also be released prior to implementation. 

By collecting information immediately after LERs occur, Ginnie Mae will be able to better estimate MBS payments owed if regular reporting is interrupted and help investors better monitor the value of holdings, it said. In the future, the office, which operates as a corporation within the Department of Housing and Urban Development, plans​ to make more frequent LER disclosures available to MBS investors.

Ginnie Mae's MBS program aims to provide liquidity for home finance operations of government agencies, including the Federal Housing Administration, U.S. Department of Veterans Affairs and the U.S. Department of Agriculture. 

The organization currently operates without a permanent leader at the helm since the departure of former President Alanna McCargo in mid 2024. Gormley was nominated to head Ginnie Mae this past August after joining as chief operating officer earlier this year. On Thursday, the nomination passed a procedural vote in the U.S. Senate that would require the full chamber to move on confirming both him and the next likely FHA Commissioner Frank Cassidy to their newly respective roles. 

Gormley's nomination has received broad support throughout the housing and lending industry, including endorsements from the Mortgage Bankers Association and National Association of Home Builders.