Washington, DC – The Government National Mortgage Association (Ginnie Mae) is announcing that pools backed by the Federal Housing Administration's (FHA) temporary, high-balance loans will be ready for April 1, 2008 issuance. Ginnie Mae will create a new multiple-issuer security under the Ginnie Mae II Mortgage-Backed Securities Program to accommodate these loans.

"We believe it's important that Ginnie Mae support the stimulus package and create a vehicle that will improve market liquidity as soon as possible," said Thomas R. Weakland, Acting Executive Vice President of Ginnie Mae. "This new security will enable more borrowers to qualify for safe, affordable FHA-insured loans, which is critically important as the mortgage industry continues to navigate the ongoing market upheaval."

All single-family loans higher than FHA's current loan limit of $362,790 will be eligible for inclusion in the new pools. For detailed information about the new loan thresholds, please see the Ginnie Mae APM at this link http://www.ginniemae.gov/apm/apm_pdf/08-05.pdf. Issuers can begin submitting pools on March 24, 2008 for the April 1, 2008 issuance.

"A government-insured mortgage, coupled with the safety and liquidity of a Ginnie Mae security will greatly benefit homeowners, lenders and investors," Weakland continued.

The Economic Stimulus Act of 2008 allows FHA to insure higher balance loan through December 31, 2008.

Ginnie Mae is a wholly-owned government corporation within the U.S. Department of Housing and Urban Development. Ginnie Mae pioneered the mortgage-backed security (MBS), guaranteeing the very first security in 1970. A MBS enables a mortgage lender to aggregate and sell mortgage loans as a security to investors. Ginnie Mae securities carry the full faith and credit of the United States Government, which means that, even in difficult times, an investment in Ginnie Mae is one of the safest an investor can make.