Ginnie Mae MBS Guide
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CHAPTER 24. SINGLE FAMILY, LEVEL PAYMENT POOLS AND LOAN
PACKAGES — SPECIAL REQUIREMENTS
PART 1
. OVERVIEW OF CHAPTER
Effective Date: 2018-05-30
This chapter describes special requirements that apply for a pool or loan package of single
family, level payment mortgages. The requirements described in this chapter may modify,
supplement or, in some cases repeat for the purpose of emphasis, those set forth in previous
chapters with respect to mortgage eligibility, pool and loan package requirements, required pool
and loan package submission documents, and the securities. The pool suffix is “SF.”
SF pools can be formed under the Ginnie Mae I MBS Program as X SF pools, and the Ginnie
Mae II MBS Program as either C SF or M SF pools.
PART 2
. MORTGAGE ELIGIBILITY, POOL, AND LOAN PACKAGE REQUIREMENTS
The mortgage eligibility, pool and loan package requirements that apply, with limited exceptions,
to all pool types are found in MBS Guide, Ch. 9. In addition, SF mortgages, pools, and loan
packages must meet the following requirements:
Section A
.
Mortgage Eligibility Requirements
Effective Date: 2023-12-01
(1) General requirements:
Number of units: Each mortgage loan must generally cover no more than four units
in a single structure. A mortgage loan for a two to four unit dwelling may be a High
Balance Loan as defined in MBS Guide, Ch. 9, Part 2, § B. Issuers must ensure that
the pooling requirements for High Balance Loans, specified below in MBS Guide,
Ch. 24, Part 2, § A(1), are satisfied. The restrictions on the number of units for a
single structure imposed by FHA, VA, RD or PIH are applicable to
this program.
Maturity: For pools or loan packages originated on or after September 1, 2004,
Issuers may securitize loans with a first payment date more than 48 months before
the issue date of the pool. However, and in order to avoid possible negative tax
consequences to foreign investors, Ginnie Mae will not allow any loans originated
prior to 1985 to be included in new pool or loan package originations. Moreover,
and in order to ensure that Ginnie Mae’s single family pools adhere to the test for
reasonable homogeneity, Issuers must also ensure that the loan maturity
requirements specified below in MBS Guide, Ch. 24, Part 2, § B(3)
are met.
Interest rate
(v) Ginnie Mae I MBS pools:
Each mortgage in a pool must bear the same fixed interest rate as every other
mortgage in its pool, which is one-half of one percent (50 basis points) higher
than the interest rate on the related securities. The interest rate on the mortgage
may not change during the life of the mortgage.
(v) Ginnie Mae II MBS pools
and loan packages:
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Each mortgage in a pool or loan package issued on or after July 1, 2003 must
bear a fixed interest rate at least 25 but not more than 75 basis points higher
than the interest rate on the related securities. The interest rate on the mortgage
may not change during the life of the mortgage.
Amortization: Each loan must provide for repayment in equal monthly installments
over the fixed term of the loan. No loan may be re-amortized while it is in a pool or
loan package.
Buydowns
(v)
Ginnie Mae I MBS pools:
Ginnie Mae I SF pools may not contain mortgages with buydown provisions. Any
mortgage with buydown features, whether or not specifically approved as a
buydown mortgage, must either be placed in a separate BD or SN pool. (Please
See MBS Guide Chapters 25 and 29)
(v) Gi
nnie Mae II MBS pools and loan packages:
SF loans that include buydown provisions are eligible for Ginnie Mae II SF pools
and loan packages under the following conditions:
With respect to custom, Single Family Level Payment pools, buydown loans may
not constitute more than 10.00% of the total original principal balance at
origination. In order to accommodate buydown loan pooling, a new pool type
designation has been created: C BD. The C BD pool type does not need to pool
buydown loans exclusively, and may in fact commingle both buydown and non-
buydown loans. Adjustable Rate Mortgages (ARMs), Graduated Payment
Mortgages (GPMs) and Growing Equity Mortgages (GEMs) are not eligible for
buydown consideration.
If an Issuer submits a C BD pool type through Ginnie Mae’s electronic pooling
application, and the pool contains one or more buydown mortgages, the pool will
be issued as a C BD pool regardless of the BD dollar amount and total pool
dollar amount. At pooling, the appropriate FHA ADP codes will be identified and
applied to the buydown mortgages.
The C BD pool type will be eligible for immediate servicing transfer (“PIIT”), so
long as both parties meet the servicing transfer requirements communicated in
the MBS Guide. At issuance, the aggregate unpaid principal balance of all loans
in a C BD pool must be at least $500,000, and consist of at least three loans,
with the exception of Custom Bond Finance pool products, which only require, at
minimum, an unpaid princi
pal balance of $25,000.00, and one loan.
Pursuant to recent changes to the Ginnie Mae II MBS program, the spread of
note rates eligible for securitization of C BD pool types must be at least 25 basis
points, but not more than 75 basis points, above the security rate. Consequently,
C BD pool types will have a minimum servicing fee of 19 bps and a maximum
servicing fee of 69 bps plus a 6 basis point Ginnie Mae guaranty fee. For pools
meeting Ginnie Mae’s Targeted Lending Initiative, the minimum servicing fees
will be 20, 21 and 22 basis points with a guaranty fee of 5, 4 and 3 basis points,
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respectively. The maximum weighted average servicing fee at issuance cannot
exceed 72 basis points.
With respect to multiple Issuer pools and loan packages, (M SF), no more than
ten percent (10%) of the aggregate original principal balance of the mortgage
loans in a SF pool may consist of buydown loans. Within a loan package,
buydown loans may exceed ten percent (10%) of the aggregate original principal
balance of the loans in the loan package. However, when creating a multiple
Issuer SF pool, if the Pool Processing Agent (PPA) determines that the pool
contains more than ten percent (10%) buydown loans, the PPA will determine
which Issuer has the highest percentage of buydown loans in their loan package.
The loan package with the highest percentage of buydown loans will be deleted
from the multiple Issuer pool. The recalculation and removal process will
continue until the pool reaches the ten percent (10%) threshold. Issuers whose
loan package has been rejected will be contacted by the PPA. Issuers whose
loan package does not exceed the ten percent (10%) threshold will not be
subject to removal from the multiple Issuer pool.
An M SF pool or loan package may not contain both buydown loans and High
Balance Loans.
Interest escrow custodial account: An interest escrow custodial account must be
maintained in connection with buydown mortgages for the deposit of buydown funds
provided by the Issuer. This account must meet Ginnie Mae’s escrow custodial
account requirements and it must meet FHA’s and VA’s requirements for such
accounts. (Please See MBS Guide Chapter 16, Part 5)
Loan amount: The original principal amount of the mortgage for FHA loans is limited
to the amount permitted for a particular geographic area pursuant to section
203(b)(2), section 214 or section 220(d)(3)(A)(i) of the National Housing Act. For VA
loans see MBS Guide, Ch. 24, Part 2, § A(3) below. For RD loans see MBS Guide,
Ch. 24, Part 2, § A(4) below. For PIH loans see MBS Guide, Ch. 24, Part 2, § A(5)
below.
With respect to Ginnie Mae I “X SF” and Ginnie Mae II “M SF” pools, the aggregate
amount of the issue date unpaid principal balance of the High Balance Loans, as
defined in MBS Guide, Ch. 9, Part 2, § B, may not exceed 10% of the original
principal balance
of each pool or loan package.
With respect to Ginnie Mae I “X BD” and “X SN” pool types as well as Ginnie Mae II
“M JM”, “M FS”, “All ARMS”, “C SF”, “C RG”, “C ET” and “C BD” pool types, Issuers
may pool High Balance Loans in excess of 10% of the original principal balance of
each pool or loan package.
Builders' inventories: FHA-insured loans made for the purpose of financing builders'
inventories, including operative builder, builder/investor, and escrow commitment
procedure loans, are not eligible for an SF pool. The Issuer is responsible for
determining whether a loan is intended to be used for financing a builder's
inventory.
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Section 203(k) loans: A section 203(k) loan is eligible for a Ginnie Mae I MBS pool
or a Ginnie Mae II MBS pool or loan package if (i) the borrower is an individual
owner-occupant, or (ii) the borrower is an eligible nonprofit agency and the loan is
originated under an affordable housing program approved by a local FHA office as
specified in FHA Mortgagee Letter 96-52 or (iii) the borrower is a state or local
government agency. The Issuer pooling nonprofit agency section 203(k) loans must
maintain in the loan package file with the document custodian a copy of the FHA
letter approving the FHA affordable housing program under which the loans are
originated.
(2) Special requirements for modified FHA-
insured loans, VA and RD guaranteed loans:
The term “Modified Loan” means a mortgage loan that has undergone a rate and/or term
modification pursuant to a duly executed loan modification agreement under the insuring
or guarantying agency’s loss mitigation program. At pooling, Modified Loans are
regarded as new loans and judged on the modified terms under which the loans were
pooled.
A Modified Loan may be re-pooled if it retains its first lien position and meets the
conditions listed below. It is the Issuer’s responsibility to ensure the Modified Loan’s first
lien position is not adversely impacted by any real estate taxes, assessments such as
HOA dues, or other matters that could become a first lien. A loan modification that is
combined with a deferment is ineligible for re-pooling into any Ginnie Mae single-family
MBS. The deferment loss mitigation option must be exercised without buying the loan
out of a Ginnie Mae MBS to avoid subjecting the loan to re-pooling restrictions.
Additional conditions for Modified Loans:
the original mortgage that is to be removed from a Ginnie Mae pool for modification
is 90 days or more delinquent.
the Modified Loan meets all of Ginnie Mae’s eligibility criteria for single family
mortgages.
the term of the Modified Loan is no longer than 360 months from the due date of the
first installment payable under the modification agreement, with the exception of
“Extended Remaining Term Modified Loans” in the C ET pools whose terms are
greater than or equal to 361 months but not more than 480 months. The date of
loan modification may be used as the origination date for the purpose of pooling.
the Loan Modification Agreement must be recorded.
the Issuer must ensure that the Modified Loan maintains its first lien position, which
for loans backing securities issued on January 1, 2016 or earlier, must be
documented by a new title policy, a title policy endorsement ensuring priority over
defects, liens, and encumbrances, an ALTA Form Mortgage Modification Policy
(MMP), or a Mortgage Priority Guarantee policy (MPG). For loans backing securities
issued on February 1, 2016, or later, it must be documented by either a new title
policy, a title policy endorsement ensuring priority over defects, liens, and
encumbrances, or an ALTA Form Mortgage Modification Policy (MMP); and
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regardless of security issuance date, by such recorded subordination agreements
as required to maintain first lien position.
When submitting Extended Remaining Term Modified Loans for C ET pools, all
Issuers must make the following attestation:
With respect to each mortgage loan, all modifications of the mortgage loan after the
origination of such mortgage loan must be occasioned by default or reasonably
foreseeable default on such mortgage loan within the meaning of Treasury
Regulations section 1.860G-2(b)(3)(i).
Issuers may deliver electronically signed and notarized Loan Modification Agreements
that meet the requirements outlined below in Chapter 24, Part 3, § A (2) (b).
Issuers are not permitted to deliver an electronically signed modification agreement if: a.)
the security instrument, as modified by the electronically signed modification agreement,
would be invalid or unenforceable or would no longer be in first lien position; b.) the
recording jurisdiction does not permit or provide for recordation of electronic documents;
or c.) the eIssuer is unable to comply with the recording jurisdiction’s recordation and
formatting requirements for an electronic document’s recordation.
(3) Special requirements for VA-
guaranteed loans:
For a VA-guaranteed loan to be eligible for pooling, the following additional requirements
apply:
The amount of cash down payment and/or equity, plus the amount of available VA
guaranty must equal at least 25% of (i) the purchase price of the property or (ii) the
Certificate of Reasonable Value (CRV), whichever is less. The funding fee charged
by VA must not be included in this calculation.
The cash down payment must also include the amount, if any, by which the
purchase price exceeds the CRV. Loans for the simultaneous purchase of a home
and energy conservation improvement are based solely on the CRV amount.
The cash down payment may not be derived from a second mortgage on the
property.
The mortgage amount may exceed the CRV amount only if the VA funding fee is
included in the mortgage and only to the extent of the funding fee. The unpaid
principal balance of a VA loan may be greater than the current conforming loan limit
and still be eligible for incl
usion in a Ginnie Mae pool.
If there are co-mortgagors on a loan (other than husband and wife) and one or more
of the mortgagors do not have VA eligibility (i.e., vet/non-vet joint loans) the loan is
eligible for inclusion in a Ginnie Mae pool if the 25 percent requirement of VA
guaranty plus cash/equity is met. The loan guarantee certificate will only reflect the
veteran’s pro rata interest in the mortgage.
Refinance loans:
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(v) Effective for mortgage-backed securities guaranteed between June 1, 2018 and
July 31, 2019, a refinance loan insured or guaranteed under the United States
Department of Veteran Affairs benefit program in chapter 37 of title 38 of the
United States Code is eligible for Ginnie Mae securities with such issuance dates
only if it meets the following condition.
The note date of the refinance loan must be on, or after, the later of:
the date that is 210 days after the date on which the first monthly payment
was made on the mortgage being refinanced, and
the date on which 6 full monthly payments have been made on the mortgage
(v) Effective with mortgage-backed securities guaranteed on or after August 1, 2019,
a refinance loan insured or guaranteed under the United States Department of
Veteran Affairs benefit program in chapter 37 of title 38 of the United States
Code is eligible for Ginnie Mae securities only if it meets the following condition.
The note date of the refinance loan is on, or after, the later of:
the date on which the borrower has made at least six monthly payments on
the loan being refinanced; and
the date that is 210 days after the first payment due date of the loan being
refinanced.
(v) Ginnie Mae is adding the following definitions for purposes covered by this
section.
the term “Refinance Loan” means a loan secured by an interest in real
property that is a refinancing made to pay off or satisfy one or more
outstanding loans, debts, or liens associated with the corresponding real
property.
the term “Loan Refinancing a Mortgage Without a VA Guaranty” means a
Refinance Loan that is made to pay off a mortgage loan that is not insured or
guaranteed under chapter 37 of title 38 of the United States Code, including
but not limited to Refinance Loans made to pay off conventional mortgage
loans, Refinance Loans made to pay off mortgage loans insured by the
Federal Housing Administration, and Refinance Loans made to pay off
mortgage loans insured or guaranteed under USDA’s Rural Development
Program.
the term “Loan Refinancing Non-Mortgage Debts” means a Refinance Loan
that is made to pay off or satisfy a lien placed on the corresponding secured
property other than a lien associated with a previous mortgage loan, including
but not limited to tax, judgment, and mechanic’s liens.
the term “Loan Refinancing a Mortgage Without Scheduled Monthly
Payments” means a Refinance Loan that is made to pay off or satisfy an
outstanding mortgage that provides, by its own terms, for no monthly
payments.
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the term “Permanent Financing Construction Loan” means a loan used to
provide permanent financing for a newly-constructed or renovated Single-
family home and to satisfy an existing lien against a such home resulting from
the corresponding construction or renovation project.
the term “Re-Performing Refinance Loan” means a Refinance Loan that is
not more than 30 days delinquent, that was previously bought out from a pool
or loan package backing a Ginnie Mae MBS, and that retains the same rate
and terms as the rate and terms associated with such loan on the date the
loan was initially securitized in a Ginnie MBS.
the term “Refinance of a Modified Loan” means a Refinance Loan that is
used to pay off a Modified Loan as defined in Subsection (2) above.
the term “High LTV VA Cash-Out Refinance Loan” means a Refinance Loan
that is insured or guaranteed under the provisions of chapter 37 of title 38 of
the United States Code with a loan-to-value ratio that exceeds 90 percent at
the time of origination (i.e. 90.01 LTV and higher), and where the borrower
converts any amount of home equity into cash.
the term “Seasoning Requirements” means the requirements in Subsection
(d)(i) and (d)(ii) above.
(v) Loan Refinancing a Mortgage Without a VA Guaranty: Except as noted below,
any VA-guaranteed Loan Refinancing a Mortgage Without a VA Guaranty,
including a Refinance Loan used to pay off a conventional mortgage, is subject to
the Seasoning Requirements in Subsection (d)(i) and (d)(ii), above.
(v) Re-Performing Refinance Loans: Effective with mortgage-backed securities
issued between June 1, 2018 and July 31, 2019, any VA -guaranteed Refinance
Loan that is redelivered to Ginnie Mae without modification must satisfy the
requirements in Section (d)(i) above to be eligible for pooling and securitization,
even if they were previously pooled.
Effective with mortgage-backed securities issued on or after August 1, 2019, VA-
guaranteed Re-Performing Refinance Loans are exempt from the Seasoning
Requirements in Subsections (d)(i) and (d)(ii), above. However, Re-Performing
Refinance Loans are subject to the same restrictions applicable to all Re-
Performing Loans identified in Chapter 18 of this MBS Guide.
(v) Refinances of Modified Loans: Except as noted below, any VA-guaranteed Loan
Refinancing a Modified Loan is subject to the Seasoning Requirement in
Subsection (d)(i) or (d)(ii) above.
(v) Loans Refinancing Non-Mortgage Debt: VA-Guaranteed Loans Refinancing
Non-Mortgage Debt are not subject to the Seasoning Requirements in
Subsection (d)(i) or (d)(ii)
above.
(v) Loans Refinancing Mortgages Without Scheduled Monthly Payments: A Loan
Refinancing a Mortgage Without Scheduled Monthly Payments, including for
example a Refinance Loan used to pay off a reverse mortgage for which no
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monthly payments are scheduled, is not subject to the Seasoning Requirements
in Subsection (d)(i) or (d)(ii) above.
(v) Permanent Financing Construction Loans: Effective with mortgage-backed
securities issued between June 1, 2018 and July 31, 2019, Permanent Financing
Construction Loans may be exempt from the Seasoning Requirements when the
loan associated with the mortgage that is being refinanced does not, by its own
terms, provide for a minimum of six-
monthly payments. For example, a
Refinance Loan that is used to pay off a construction loan with terms that provide
for interest only payments during the first four months followed by a fifth payment
covering the full balance of the construction loan would not be subject to the
Requirements of Subsection (d)(ii) above.
Effective with mortgage-backed securities issued on or after August 1, 2019,
Permanent Financing Construction Loans are exempt from the Seasoning
Requirements of Subsection (d)(i) and (d)(ii)
above.
(v) VA requires an appraisal (a new CRV): If a loan is refinanced and VA requires a
new CRV or appraisal, the guaranty requirement specified above in MBS Guide,
Ch. 24, Part 2, § A(3)(a) must be met. The cash requirement, however, may be
satisfied by either cash or “equity,” which is defined as the positive difference
betwee
n the amounts specified in the CRV and the new loan amount.
Ginnie Mae authorizes these loans to be supported by an independent appraisal.
The appraiser may not be an employee of the Issuer or of any subsidiary or
related firm or corporation and must meet the qualifications for appraisers
established by Fannie Mae or Freddie Mac.
(v) VA does not require an appraisal: If a mortgage involves refinancing at a lower
rate of interest and the VA does not require an appraisal, Ginnie Mae will not
require an appraisal. In such cases, the Issuer must ensure that the VA guaranty
plus cash (or equity, as defined above) will be equal to at least 25% of the new
loan amount. The Issuer may use a reasonable value estimate other than an
appraisal to determine the equity portion (the estimated market value in excess
of the new loan amount).
Ginnie Mae does not specify any particular estimation procedure. The only
requirement is that there be written documentation establishing a reasonable
market value estimate and that such documentation be available to Ginnie Mae
for review.
If a VA GPM loan is refinanced into a level payment mortgage at a lower rate of
interest, and if no cash is taken out as a result of the transaction, no appraisal is
required.
(v) Additional Pooling Restrictions for High LTV VA Cash-Out Refinance Loans:
Effective with mortgage-backed securities guaranteed on or after November 1,
2019, High LTV VA Cash-Out Refinance Loans are subject to the following
pooling restrictions, except as noted below.
High LTV Cash-Out Refinance Loans are not eligible collateral for and may
not be included in Ginnie Mae I Single-Family Pools X SF or X BD.
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High LTV VA Cash-Out Refinance Loans are not eligible collateral for and may
not be included in Ginnie Mae II Single-Family Multiple Issuer Pools M SF.
High LTV VA Cash-Out Refinance Loans that are Permanent Financing
Construction Loans are exempt from the restrictions in this subsection (xii) and
may be pooled into Ginnie Mae I and Ginnie Mae II pools.
For VA vendee account mortgages or installment contracts guaranteed pursuant to
VA Regulation 4600 (38 CFR 36.4600) or VA direct loans sold and guaranteed
pursuant to 38 U.S.C. 1811(g):
(v) If the loans are eligible for repurchase by the VA at less than 98 percent of par,
there must be collateral on deposit with the Ginnie Mae Office of Issuer &
Portfolio Management in an amount equal to one-half the difference between the
purchase price and 98 percent of par. No collateral is required, however, if the
amount is less than $1,000.
(v) Collateral must be either a certificate of deposit evidenced by a deposit
agreement (Appendix III-11) or a letter of credit held for Ginnie Mae's benefit
(Appendix VI-3). The collateral must be held for six years, and it may be reduced
by one-sixth of the original amount at the end of each year at the request of the
Issuer.
(v) Title evidence and other documentation required to be deposited with the
document custodian is limited to that supplied by the VA to the Issuer.
(v) The loans must have been sold by the VA no more than 48 months before the
issue date of the securities.
(v) The loans must be either guaranteed by or, in the event of default, subject to
repurchase by the VA at no less than the price at which they are sold by the VA.
(4) Special requirements for RD-guaranteed loans:
For an RD loan to be eligible for pooling, the following additional requirements apply:
The RD loan must be made under the section 502 Guaranteed Single Family Rural
Housing Loan Program of the Department of Agriculture. The entire loan must be
pooled.
Once an RD loan is pooled, some of the loan servicing options offered by RD are
not available. All subcontract servicing agreements must be in accordance with the
requirements set forth in MBS Guide, Ch. 2, Part 15; Ch. 3, Part 20; and Ch. 4, Part
3.
In addition to the documents listed in MBS Guide, Ch. 13, Part 7, § B, the Loan
Note Guaranty (as evidence of the RD guaranty) must be deposited with the
document custodian at the time of final certification.
Each manufactured home loan originated under section 502 must be pooled in an
SF pool. (Please See MBS Guide Chapter 30)
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(5) Special requirements for § 184 loans:
For a § 184 loan to be eligible for pooling, the following additional requirements apply:
The § 184 loan must be made under the section 184 Indian Home Loan Guarantee
Program.
The § 184 loan may provide both construction and permanent financing or only
permanent financing.
A § 184 loan must be documented by a certificate of loan guarantee issued by PIH,
which must be deposited with the document custodian at the time of final
certification and maintained in the loan file.
The loan and related security instrument must be recorded with the Bureau of Indian
Affairs rather than by a local jurisdiction. The security instrument may be a
mortgage, deed of trust or lease contract.
Title insurance is not available for § 184 loans. A title status report issued by the
Bureau of Indian Affairs must be deposited with the document custodian at the time
of final certification and maintained in the loan file.
(6) Special Requirements for Re-Performing Loans – Re-Performing Loans are subject to
the pooling restrictions provided in Chapter 18, Part 2 § (B)(6).
(7) Special Requirements for Digital Collateral—Mortgages backed by digital collateral, such
as, but not limited to eNotes are subject to the requirements of the Digital Collateral
Guide, Appendix V-07 of this Guide; may only be pooled by approved eIssuers; and
maintained by approved eCustodians.
Section B
.
Pool and Loan Package Requirements
Effective Date: 2021-10-29
(1) Minimum pool and loan package balances:
As of the date of issue, each Ginnie Mae I SF pool and each Ginnie Mae II custom pool
must, except as provided in paragraph (2) below, have an original principal amount of at
least $1,000,000. As of the date of issue, each loan package for a Ginnie Mae II multiple
Issuer pool must have an original principal amount of at least $25,000 and may consist
of only one loan.
NOTE: Per APM 10-09, dated June 18, 2010 the half and whole security coupon rate
requirement has been temporarily delayed. This requirement will be reinstated for all
multiple Issuer pools with an August 1, 2010 issuance.
(2) State or local housing bond financing programs and C ET pools:
A $25,000 minimum pool size is permissible for Ginnie Mae I pools and Ginnie Mae
II custom pools if the securities are to be used as collateral for a bond financing
program (BFP). Each pool of this type may contain fewer than three loans and may
consist of only one loan. It is intended that the related securities will be held by the
trustee for the BFP. If the related securities are traded in the secondary market,
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each purchaser must be provided with a letter stating that the underlying mortgages
are part of a mortgage revenue bond program and that the security holder may
experience different prepayment characteristics than might be customary.
(i) The Issuer will be required to certify that a pool is collateral for a BFP if it does
not satisfy the applicable standard Ginnie Mae I or Ginnie Mae II pool
requirements for minimum pool size and minimum number of loans. The
required form of bond financing program certification is set forth in Appendix III-
12.
(ii) At any time beginning the 6
th
day of the month after issuance of the final pool in
a BFP, any or all of the pools issued as collateral for that BFP may be
consolidated. The consolidated pool may be issued as either a Ginnie Mae I
pool or II custom pool. The interest rate of the consolidated pool must be the
same as that of all of the terminated pools.
(iii) The Issuer will be required to provide the certification described in MBS Guide,
Ch. 24, Part 2, § B(2) and set forth in Appendix III-12. In addition, the Issuer will
be required to provide the pool numbers of the pools being terminated, and the
remaining principal balance for those pools as required in MBS Guide, Ch. 19.
The original principal balance of the consolidated pool must be equal to the sum
of the remaining principal balance of the pools to be terminated.
(iv) If all of the pools being terminated as part of the consolidation process have
been final certified and/or recertified prior to termination, the consolidated pool
shall not require final certification. If any of the pools being terminated are not
finally certified and/or recertified prior to consolidating, Issuers have twelve
months from the issue date of the new security to finally certify the consolidated
pool. However, the document custodian must review the consolidated pool file to
ensure that all required documents are present.
A $25,000
minimum pool size is permissible for C ET custom pools. Each pool of
this type may contain fewer than three loans and may consist of only one loan.
(3) Maturity:
To ensure reasonable homogeneity among pools of loans:
At least 80 percent of the original principal balance of each Ginnie Mae I pool and
each Ginnie Mae II custom pool must be in mortgages with maturities within 30
months of the latest mortgage maturity; and
At least 90 percent of the original principal amount of each Ginnie Mae I pool and
each custom pool and loan package submitted under the Ginnie Mae II MBS
Program must be in mortgages with maturities of 20 years or more. However, Ginnie
Mae will allow the mortgages in a pool or loan package to have a uniform maturity of
less than 20 years if at least 90 percent of the original principal amount of the pool
or loan package is in mortgages with the same original term (e.g., 15 years), that
original term is the longest term of any loan in the pool or loan package, and certain
special disclosure requirements are met:
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(v) The Issuer of the pool or loan package must disclose the following in writing to
the securities dealer or other first purchaser:
that the pool or loan package differs in maturity composition from Ginnie
Mae’s normal requirements;
the longest term of any loan in the pool or loan package; and
that loans comprising at least 90 percent of the original principal amount of
the pool or loan package have that term.
(v) The Issuer must obtain from the securities dealer or other first purchaser written
confirmation that these required disclosures have been made and are
acceptable.
(v) In the case of a pool submitted pursuant to MBS Guide, Ch. 10, Part 6 the Issuer,
and in all other cases the PPA, must include the following text in the prospectus
by typing it on the “Annex — Special Disclosure” (see Form HUD 11717
(Appendix IV-4) and Form HUD 11717-II (Appendix IV-20)).
This pool contains mortgages with maturities that differ from those
required under Ginnie Mae’s standard program requirements.
The Homogeneity
requirements in this section do not apply to the C ET pool type.
This pool type is restricted to mortgages with terms greater than or equal to 361
months, but not more than 480 months at pool issuance.
PART 3
. REQUIRED DOCUMENTS
The procedures and basic document requirements for submission of all pools and loan
packages are found in MBS Guide, Ch. 10, 11, and 13.
Section A
.
For Certification by Document Custodian
Effective Date: 2023-06-14
(1) The loan documents required for initial and final certification of an SF pool or loan
package by the document custodian are the same as those discussed in MBS Guide, Ch.
13, Part 7. They are summarized in the following table:
Documents
Form Number
Appendix
For Initial Certification
Schedule of Pooled Mortgages
HUD 11706
III-7
Release of Security Interest, executed
original, if applicable
HUD 11711A
III-5
Certification and Agreement, executed
original
HUD 11711B
III-5
Original notes (or, in the case of
modified loans, the original notes
executed for the modifications) or other
evidences of indebtedness, endorsed in
blank, without recourse
For nonprofit agency section 203(k)
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loans, FHA affordable housing program
letters
For Final Certification
Original recorded mortgages (or, in the
case of modified loans, the recorded
original mortgages, the related original
notes, the modification agreements, and
any required subordination agreements
and/or title endorsements)
All recorded interim assignments
Evidence of good title (e.g., mortgage
title insurance policy)
Evidence of mortgage insurance or
guaranty provided by FHA, VA, RD, or
PIH (not required for manufactured
housing). In lieu of an original MIC
signed by FHA or LGC signed by VA,
electronic confirmation from FHA
Connection or VA’s TAS is acceptable.
(2) Electronic Signature Requirements:
(a) For loans backed by electronically executed Promissory Notes (eNotes) that are
part of the Digital Collateral Program, Issuers must be approved as an eIssuer. The
application procedures for requesting approval as a Ginnie Mae eIssuer are contained
in the Digital Collateral Guide, Appendix V-07 of this Guide.
(b) Ginnie Mae permits the use of electronic signatures and remote online notarizations
for “paper” mortgages under certain circumstances that are not part of the Digital
Collateral Program. Ginnie Mae allows Issuers to submit the following documents that
are electronically signed in conjunction with Remote Online Notarization (RON):
•
Loan Modification Agreements.
• Power of Attorney (POA) documents that are in some situations necessary
to obtain Single-Family government insured or guaranteed loans. Issuers
must continue to follow all insuring or guarantying agency guidance
regarding POA eligibility and requirements, including the circumstances
under which a borrower is permitted to use an attorney-in-fact to obtain
Single-Family government insured or guaranteed loans.
Issuers may deliver the above electronically signed and notarized mortgage documents
that meet the following requirements:
(i) The mortgage document should be transferred in a manner that ensures its
ongoing validity and enforceability and its associated electronic signatures;
(ii) The mortgage document file should be stored in a manner ensuring:
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• The file name contains the following components: Ginnie Mae Loan
Package/Pool Number, the loan’s MIN (MERS® Mortgage Identification
Number), and short description of the document; and
• The system used to store the file is set up with measures that ensure
system integrity. These measures include a firewall, network perimeter
security controls, and safeguards against malware. The system must also
support one or more authentication methods to authenticate user access,
track and prevent unauthorized viewing of the files and data. The system
must employ a backup and recovery system capable of retrieving
archived/backup material within a 24-hour period of a reported instance or
activation of the Custodian’s disaster recovery plan involving any Ginnie
Mae’s assets; and
(iii) The system used to electronically sign the mortgage documents must:
• clearly support the verification of the Borrower’s identity;
• clearly identify the symbol or process used as an electronic signature by
the borrower and the purpose of the electronic signature;
• present the mortgage document in compliance with all applicable state and
federal requirements concerning the content, display, and format of
information and retention (as required for paper records)
• clearly identify the mortgage document as the electronic record being
presented for electronic signature;
• capture clear evidence that is compliant with all applicable state and
federal requirements (including ESIGN) of the borrower’s agreement to
receive electronic records and the borrower’s intent to adopt the electronic
signature and to electronically sign the mortgage document and other
electronic records as applicable, and maintain a record of such agreement;
• attach the electronic signature to, or associate the electronic signature with,
the document and any other electronic records executed by the borrower;
• attribute the electronic signature to the applicable borrower;
• include the borrower’s printed name in a visible and legible manner on the
mortgage document;
• include a date and time stamp of the time of Borrower’s execution of the
mortgage document and any other electronic records;
• track and log actions related to the creation and signing of the mortgage
document;
• provide reasonable evidence that the loan documents created and
maintained by the system are not (and have not been) subject to
unauthorized access or alteration;
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• be capable of accurately reproducing the fonts, styling, margins, and other
physical features of the mortgage document when electronically displayed
and printed post-execution and as required by state and/or federal law; and
• in all other ways ensure that the document produced is in compliance with
insuring agency guidelines and Ginnie Mae’ s guidance on the mortgage
documents.
(iv) The document is delivered as a MISMO Category 1, 2 or 4 Version 1.02
SmartDoc document or Portable Document Format (PDF) document.
(v) If the mortgage document is electronically notarized using Remote Online
Notarization (RON), notarization requirements specified in MBS Guide, Appendix V-
07 (Digital Collateral Program Guide) Section 3250.00 must be met.
Section B
.
For Approval by PPA and Ginnie Mae
Effective Date: 2023-12-01
The SF pool and loan package documents required for approval by Ginnie Mae are the same as
those discussed in MBS Guide, Ch. 10, Part 3, except that the Issuer must also submit:
(1) Schedule of Subscribers and Ginnie Mae Guaranty Agreement, form HUD 11705
(Appendix III-6), which must indicate in the block “Type of Issue” that the pool is to be
“X,” “C,”
or “M” and in the block “Pool Type” that the securities are to be “SF.”
(2) A BFP certification (Appendix III-12) if required pursuant to MBS Guide Ch. 24, Part 2,
§ B(2).
The following table lists the pool or loan package documents required by the PPA for approval
of SF pools and loan packages:
Document Name
Form Number
Schedule of Subscribers and Ginnie Mae Guaranty Agreement
HUD 11705
Schedule of Pooled Mortgages
HUD 11706
Master Servicing Agreement
HUD 11707
Master Agreement for Servicer's Principal and Interest Custodial
Account
HUD 11709
Master Agreement for Servicer's Escrow Custodial Account
HUD 11720
Master Agreement for Servicer’s Escrow Custodial Account
(custodial account for deposit of buydown funds provided by
Issuer)
HUD 11720
Master Custodial Agreement
HUD 11715
Prospectus
HUD 11717 or
11717-II
BFP certification, if required by MBS Guide, Ch. 24, Part 2, § B(2)
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PART 4
. THE SECURITIES AND
MARKETING DISCLOSURE
Effective Date: 2021-10-29
Preparation and delivery of the securities through the depository are described in MBS Guide,
Ch. 12. The text of SF securities held in certificated form is set forth in Appendix IV-11 for the
Ginnie Mae I MBS Program and Appendix IV-25 for the Ginnie Mae II MBS Program. A partial
statement of the terms of SF securities held in uncertificated form is set forth in Appendix IV-17
for the Ginnie Mae I MBS Program and Appendix IV-27 for the Ginnie Mae II MBS Prog
ram.
Ginnie Mae II SF securities backed by buydown mortgages must be clearly differentiated from
other types of Ginnie Mae MBS in all forward market and other transactions. Therefore, in all
communications relating to such transactions, an Issuer of a Ginnie Mae II custom pool or loan
package must clearly disclose that the securities to be delivered are backed by a pool
containing buydown mortgages. Also, before delivery, Issuers must obtain for their records from
each dealer or investor to which the Issuer is selling securities a confirmation statement clearly
disclosing the nature of the pool underlying the securities to be delivered.
Ginnie Mae II ET pools contain mortgages with maturities that differ from those required under
Ginnie Mae’s standard program requirements and must be clearly differentiated from all other
types of Ginnie Mae MBS in all forward market and other transactions.
An Issuer must retain these confirmation statements as records subject to Ginnie Mae's right of
inspection.