Ginnie Mae

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Ginnie Mae Announces New MBS Program for Manufactured Housing
     June 10, 2010  – Ginnie Mae is pleased to announce its plans for the implementation of a new mortgage-backed security (“MBS”) program for manufactured home loans. The program has been created in response to recent changes in the Federal Housing Administration’s (“FHA”) Title I Program for manufactured housing, as communicated in Title I Letters TI-481 and TI-484,and in support of the Housing and Economic Recovery Act of 2008 (“HERA”). The program is designed not only to fulfill the needs of borrowers and lenders, but also to provide for prudent risk management. Eligible manufactured housing loans may only be pooled as Ginnie Mae II MBS, using the Manufactured Housing Custom Pool type (“C MH”).

    Effective immediately, Ginnie Mae will accept applications for participation as Issuers of MBS backed by new Title I manufactured home loans (“MH MBS”). Issuers that are currently approved to issue manufactured housing securities are required to re-apply in order to participate in the new program. The major change to the program will be that all approved Issuers will be required to maintain a minimum adjusted net worth of $10 million, as calculated in accordance with the HUD Audit Guide, plus 10% of the amount of MH MBS outstanding.

     Ginnie Mae will provide full program guidance no later than September 1, 2010. The new MH MBS program will also feature the following:

• The program applies to pools backed by loan collateral for which the loan application date is June 1, 2009, and thereafter, in order to reflect the effective date of FHA’s newly revised Title I program. Guidance for the new FHA Title I program can be found at the FHA Title I letters page. Loans originated with manufactured home loan application dates made prior to June 1, 2009, are ineligible for pooling within the C MH pool type, and will no longer be eligible for pooling within any Ginnie Mae securities beyond a September 1, 2010, issuance date;

• Issuers must provide to Ginnie Mae, at pooling, an acceptable FHA loan application date, otherwise the loan will be rejected;

• The guarantee fee for MHMBS shall remain at 30 bps; however, the minimum pool origination balance will increase to $1mm;

• Title I loans are ineligible for pooling as multiple issuer pools (MIPs), and for immediate issuance transfer (PIIT) pools; and

• Issuers may only use Concurrent Date (“CD”) accounting methods for the C MH pooling type.

If you have any questions regarding this memorandum, please contact your Ginnie Mae Account Executive in the Office of Mortgage-Backed Securities at (202) 708-1535.

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