A range of Ginnie Mae programs to serve a range of Issuers
Ginnie Maes are fully modified pass-through mortgage-backed securities. Even in uncertain times, pass-throughs of principal and interest from these securities provide a dependable monthly source of income.
Ginnie Mae offers two MBS products:
Ginnie Mae I MBS requires all mortgages in a pool to be the same type (e.g. single-family). Ninety percent of the pooled mortgages backing 30-year pass-throughs must have original maturities of 20 or more years. In addition, the mortgage interest rates must all be the same and the mortgages must be issued by the same lender. The minimum pool size is $1 million; payment on Ginnie Mae I MBS is made on the 15th day of each month.
Ginnie Mae II MBS allows multiple-issuer pools to be assembled, which in turn allows for larger and more geographically dispersed pools as well as the securitization of smaller portfolios. A wider range of coupons is permitted in a Ginnie II MBS pool, and issuers are given greater flexibility on the range of fees ranging from 25 to 75 basis points for pools issued after July 1, 2003 and 50 to 150 basis points for pools issued earlier. The minimum pool size is $250,000 for multi-lender pools and $1 million for single-lender pools. Ginnie II MBS payment is made on the 20th day of each month.
Ginnie Mae I versus Ginnie Mae II Features
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