Ginnie Mae issues guidance on manufactured home MBS program
Ginnie Mae issued new guidance on pooling Federal Housing Administration manufactured home loans. Ginnie guarantees investors the timely payment of principal and interest on mortgage-backed securities containing federally insured loans, mainly FHA. In June, Ginnie supported the FHA's new Title 1 Manufactured Home Loan Program, and effective Oct. 1, issuers were able to pool those manufactured home loans through Ginnie. According to the new guidance, eligible collateral for the Ginnie Mae II custom pool called "G MH" can only include FHA Title 1 home loans with an application date on or after June 1, 2009. Manufactured home loans with dates before then will not be eligible for pooling beyond a September 2010 issuance. Any financial institution wanting to participate in the Ginnie Mae II Manufactured Home Loan MBS Program must submit an application. These companies must maintain a minimum adjusted net worth of $10 million or more, plus 10% of all manufactured home MBS outstanding, the balance of the issuer's commitment line and the outstanding balance of all pools funded by the issuer. The guarantee fee on these pools remains at 30 basis points, and each pool must contain at least eight loans. Write to Jon Prior.