|
Benefits of Ginnie Mae Platinum Securities
Ginnie Mae Platinum securities provide MBS investors with greater market and operating efficiencies. Investors owning smaller pools of Ginnie Mae MBS can combine new or existing MBS into larger Ginnie Mae Platinum pools. A Ginnie Mae Platinum security may be used in structured financings, repurchase transactions, and general trading.
- Ginnie Mae guarantees the timely payment of principal and interest on each Ginnie Mae Platinum Certificate.
- Ginnie Mae Platinum securities carry the full faith and credit guaranty of the United States government.
- Ginnie Mae Platinum securities increase marketability and liquidity for relatively illiquid MBS pools, which, when combined, still meet PSA "good delivery" guidelines.
- Ginnie Mae Platinum pool processing costs to investors, for monthly principal and interest payments, are lower due to the combination of MBS pools into one larger pool.
- Prepayment variation for Ginnie Mae Platinum securities may be less than the MBS due to the diversification of the underlying mortgages.
Ginnie Mae Platinum securities are issued under Ginnie Mae's Multiclass Securities Program. Ginnie Mae Platinum securities allow an investor holding a number of Ginnie Mae Certificates to deposit them into a Ginnie Mae Platinum pool. The investor may deposit the securities directly or through a financial institution that acts as depositor on the investor's behalf. In exchange for the Ginnie Mae MBS Certificates, the Ginnie Mae Platinum Trust will issue one larger-denominated Ginnie Mae Platinum Certificate and deliver it to Ginnie Mae's designated depository for the account of the depositor.
Ginnie Mae requires that the pool of Ginnie Mae MBS underlying a Ginnie Mae Platinum Certificate consist entirely of Ginnie Mae I MBS or entirely of fixed-rate Ginnie Mae II MBS. In both cases, the securities must have the same pool type and coupon rate. Both 30-year and 15-year Ginnie Mae MBS Certificates are eligible for Ginnie Mae Platinum pools. Ginnie Mae Platinum pools can be created from seasoned or current production MBS; depositors can contribute entire or partial pools of Ginnie Mae MBS certificates.
Ginnie Mae guarantees the timely payment of principal and interest on each Ginnie Mae Platinum security. This guaranty is backed by the full faith and credit of the United States government. In exchange for Ginnie Mae's guaranty of the Ginnie Mae Platinum Certificate, the depositor will pay Ginnie Mae a guaranty fee. Details of the fee may be obtained by calling Ginnie Mae's Office of Customer Service, Capital Markets Division, (202) 401-8970.
|
