Ginnie Mae II Key Program Provisions
There are 5 programs within Ginnie Mae II, each representing a different type of mortgage. Under each type, both the custom pool and multiple issuer pool approaches are permissible. Any one pool must consist of only one of the following mortgage types:
- Single-family level payment mortgages (FHA, VA, or RHS loans)
- Single-family graduated payment mortgages (FHA or VA)
- Single-family growing equity mortgages (FHA or VA)
- Manufactured home loans (FHA or VA)
- Single-family adjustable rate mortgages (FHA or VA).
Interest Rates on Mortgages: Loans with different interest rates, within one-half percent range in pools issued after July 1, 2003 and within a one percent range in pools issued before July 1, 2003, may be included in the same pool or loan package, except in the manufactured home loan program where a different rule is applicable.
Minimum Sizes of Pools and Loan Packages:
- Single-family level payment mortgages
Custom pools: $1 million (may be $25,000 if issued in connection with a Local or State housing bond financing program. If this pool is ever traded in the secondary market, the securities must be sold with a letter stating that the underlying mortgages were a part of a mortgage revenue bond program and the security holder may experience different prepayment characteristics, than is customary).
Loan packages: $250,000
- Graduated payment mortgages
Custom pools: $500,000
Loan packages: $250,000
- Growing equity mortgages
Custom pools: $500,000
Loan packages: $250,000
- Manufactured home loans
Custom pools: $350,000
Loan packages: $250,000
- Adjustable rate mortgages
Custom pools: $500,000 ($250,000 if the pool was rejected for a multiple issue in the preceding month)
Loan packages: $250,000
Minimum Denominations: The original principal or face amount of the certificate issued, and reissues and exchanges thereof, shall be in denominations of not less than twenty-five thousand dollars ($25,000), or if larger, in denominations which are multiples of one dollar ($1.00).
|