Home / Business and Economy / Ginnie Mae Eases Delinquency Rules for FHA Loans
Ginnie Mae Eases Delinquency Rules for FHA Loans
28 Apr
Summary
- Ginnie Mae will temporarily exclude FHA Trial Payment Plan loans from issuer delinquency calculations.
- This change begins with March 2026 reporting, effective April 2, 2026.
- The adjustment addresses higher delinquency rates caused by FHA's new loss mitigation waterfall.
Ginnie Mae has issued APM 26-06 to temporarily exclude loans undergoing FHA Trial Payment Plans (TPPs) from issuer delinquency rate calculations for compliance purposes. This policy change is effective starting with the March 2026 reporting period, with the monthly report due April 2, 2026.
The adjustment addresses a recent increase in delinquency rates experienced by issuers. This rise is attributed to the FHA's updated single-family loss mitigation waterfall, which mandates that delinquent borrowers must complete TPPs before being eligible for other loss mitigation solutions, such as partial claims.
As a result of the FHA's revised policy, a greater volume of loans have entered TPP status, subsequently inflating reported issuer delinquency rates. Ginnie Mae anticipates that these TPP volumes will normalize as the new loss mitigation policy matures.
For issuers, loans in TPP status will not be counted as delinquent for ratio compliance, although they will continue to be reported as delinquent in standard loan-level reporting. Ginnie Mae will monitor the impact of TPP loans and provide at least 60 days' notice before reverting to its standard calculation method.
Ginnie Mae also indicated plans to broadly review its delinquency threshold policy in the future, suggesting potential long-term modifications to delinquency risk measurement and enforcement for issuers.
