Ginnie Mae launched a new manufactured housing mortgage-backed security (MH MBS) program for Title 1 mortgage loans, the agency announced today.
Ginnie Mae will immediately begin accepting applications for participation into the program, which is being implemented in light of recent changes to the Federal Housing Administration's (FHA) Title 1 Program for manufactured housing and the Housing and Recovery Act of 2008.
The new program will feature eligible manufactured housing loans pooled under the Ginnie Mae II MBS program using the manufactured housing custom pool.
The program only applies to manufactured housing loans with an FHA application date on or after June 1, 2009. Pools will have a guarantee fee of 30 basis points, but the minimum pool origination balance will increase to $1 million.
Issuers will be required to maintain a net worth of $10 million, plus 10 % of the amount of outstanding MH securities and loans will not be eligible for pooling as multiple issuer pools or for immediate issuance transfer pools.
Ginnie Mae will provide full program guidance no later than Sept .1.
"We recognize the vital role that manufactured housing plays for millions of families in this country," said Theodore Tozer, Ginnie Mae president. "The ability to offer an enhanced manufactured housing securitization vehicle that is backed by the full faith and credit of the U.S. Government will increase secondary market liquidity for manufactured housing lenders, which should reduce costs for borrowers."