Ginnie Mae has now launched the new Issuer Operational Performance Profile (IOPP) tool. The new tool provides issuers with a framework and methodology that can be used to gauge their effectiveness against Ginnie Mae's expectations for for Issuer performance. The IOPP "scorecard" will provide a method to measure an Issuer's operational performance against peers.
"The launch of the IOPP reflects Ginnie Mae's ongoing commitment to increasing transparency and value for Issuers, investors, and other stakeholders," said Ginnie Mae President Ted Tozer. "We believe this new tool will help us continue to ensure that a safe, effective, and government-backed channel for the flow of capital for U.S. mortgages exists, reducing risk to the taxpayer and providing much-needed capital for the government."
Operational Management Metrics
IOPP scorecard metrics for Issuer operations include failure to report unpaid principal balance (UPB), timely reporting of UPB corrections and a compliance peer review metric based on Ginnie Mae's most recent findings.
Delinquency Management Metrics
IOPP scorecard metrics for Issuer operations delinquency include early payment defaults, 60-day to 90-day+ roll rates, workout effectiveness, and percentage of loans in foreclosure.
According to National Mortgage Professional Magazine, "Ginnie Mae worked closely with issuers for help defining and validating the metrics that would be most useful to the IOPP and the Issuers. By involving the Issuers in the IOPP's development, the issuers had a stake in the process and helped ensure Ginnie Mae was focused on identifying metrics which Issuers were able to influence to help improve their performance and outcomes within the IOPP. While Issuers contributed to the determination of the metrics, Ginnie Mae weighted each metric within the IOPP based on its significance and importance to Ginnie Mae."