BSI Financial Services, a national mortgage fintech platform, has announced that Ginnie Mae has approved the company as both an eIssuer and an eSubservicer under its Digital Collateral Program. The dual approvals broaden BSI's capacity to support Ginnie Mae-backed digital mortgage assets across securitization and servicing, reinforcing the company's commitment to technology-driven mortgage operations.

Ginnie Mae, the Government National Mortgage Association, is a U.S. government corporation within the Department of Housing and Urban Development (HUD) that guarantees mortgage-backed securities backed by federally insured or guaranteed loans, including those from the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the Department of Agriculture's Rural Housing Service (USDA). The agency's Digital Collateral Program enables the issuance and servicing of electronic mortgages, or eNotes, within its securities programs. The program is part of a broader industry shift away from paper-based mortgage workflows, which have historically introduced delays, storage costs, and error risks throughout the loan lifecycle.

As an approved eIssuer and eSubservicer, BSI is authorized to create Ginnie Mae eNotes and Loan Packages and to service loans held within them. The designation positions BSI to meet a growing industry need, as financial institutions increasingly require servicing partners with the infrastructure to manage digital collateral throughout the mortgage lifecycle. eNote adoption has been steadily increasing across the U.S. mortgage market, driven by operational efficiencies, faster execution times, and improved auditability compared to traditional paper notes.

"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 Financial Services. "They strengthen our ability to serve clients as the adoption of eNotes continues to grow."

The approvals followed Ginnie Mae's evaluation of BSI's operational processes and transaction testing for managing digital collateral. As part of the approval process, BSI demonstrated its ability to perform required servicing transactions involving eNotes through the MERS® eRegistry, the electronic registry operated by MERSCORP Holdings that tracks ownership of electronic promissory notes. These transactions included transfers of servicing, loan modifications, assumptions, paid-off and charged-off loan deactivations, and other servicing events required under Ginnie Mae's Digital Collateral Program.