Ginnie Mae is committed to addressing industry needs and consulting its program participants. Taking home equity conversion mortgage (HECM) industry feedback into consideration, Ginnie Mae has decided to permit annual adjustable rate HECM pools (annual ARM HMBS) to contain Participations with different interest rate adjustment dates. The Participations in a pool must have the same adjustment date as the individual HECM loans to which they are related, an interest rate that adjusts on an annual basis, and a rate adjustment that will take place within twelve months following the month of pool issuance. This policy change is effective with January 1, 2015 issuances and thereafter for both Constant Maturity Treasury (CMT) and London Interbank Offered Rate (LIBOR) index-based loan pools.
Note this policy change does not apply to monthly adjustable rate HECM pools. All Participations in monthly ARM HMBS must continue to have the same interest rate adjustment date - the first day of the month - and a rate adjustment that will take place the first day of the month immediately following pool issuance.
Applicable changes to Section 35-6(J)(1) of Chapter 35, the Adjustment Date data field in Appendix III-28, HMBS Pooling – Import File Layouts, and Appendix IV-30, the HMBS Adjustable Rate Prospectus Supplement, in the Ginnie Mae Mortgage-Backed Securities Guide 5500.3, REV-1 (MBS Guide) will be made effective January 1, 2015. The mortgage record layout M11 with the revised definition of the Adjustment Date has been excerpted from Appendix III-28 and is attached.
If you have any questions regarding this announcement, please contact your Account Executive in the Office of Issuer and Portfolio Management directly or at (202) 708-1535.
Attachment:
Attachment A: Revised mortgage record layout |