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General guidelines pertaining to participation in the Ginnie Mae Multiclass Program follow.
I. PARTICIPATION REQUIREMENTS
A participant in the Ginnie Mae Multiclass Securities Program must comply with the following requirements:
Certification. A participant must complete the certification and agreement set out in the Ginnie Mae Multiclass Securities Guide Part 1.
Compliance with Ginnie Mae Multiclass Securities Guide. By completing a Ginnie Mae Multiclass Securities Program transaction, a participant is deemed to have complied with the Ginnie Mae Multiclass Securities Guide in effect as of the date that the Ginnie Mae Guaranty is placed on the securities.
Material changes in status. A participant must report material adverse changes in status, including voluntary and non-voluntary terminations, defaults, fines and findings of material non-conformance with rules and policies of state and federal agencies and federal government sponsored enterprises.
Integrity. A participant must conduct its business operations in accordance with industry practices, ethics and standards, and maintain its books and records in an appropriate manner, as determined by Ginnie Mae.
General guidelines pertaining to eligibility for the Ginnie Mae Multiclass Program follow:
II. ELIGIBLE PARTICIPANTS
A participant must meet the following requirements:
1. Sponsor must:
Apply and be approved.
Demonstrate to Ginnie Mae's satisfaction its capacity to accumulate the eligible assets needed for a proposed structured securities issuance.
Have at least $250 million in shareholders' equity or partners' capital, evidenced by the sponsor's most recent audited financial statements, which must have been issued within the preceding 12 months.
Be in good standing with and have been responsible for at least one structured securities transaction with the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, or have demonstrated to Ginnie Mae's satisfaction its capability to do so.
Represent the structural integrity of the proposed issuance under all cash flow scenarios and demonstrate to Ginnie Mae's satisfaction its ability to indemnify Ginnie Mae for a breach of this representation.
Comply, and obtain compliance from the participants with Ginnie Mae policies regarding participation by minority and/or women-owned businesses.
2. Trustee. A trustee is selected by the sponsor from the list of eligible trustees. At present the following entities are eligible to serve as trustee:
JPMorgan Chase Bank
U.S. Bank National Trust Association
Wells Fargo Bank
A co-sponsor must submit an application and a certification as to its status as a minority and/or women-owned business.
3. Trust Counsel
Trust counsel are selected by the sponsor and must provide opinions acceptable to Ginnie Mae and upon which Ginnie Mae may rely; and comply with Ginnie Mae's policies regarding participation by minority and/or women-owned law firms.
Accountants are selected by the sponsor and must provide agreed-upon procedures letters acceptable to Ginnie Mae and upon which Ginnie Mae may rely; and comply with Ginnie Mae's policies regarding participation by minority and/or women-owned businesses.
For further information on participation in the Ginnie Mae Multiclass Securities Program visit the Ginnie Mae Multiclass Securities Guide or contact the Office of Capital Markets at 202-401-8970.