A relatively new development in the Ginnie Mae sector is the issuance of premium buydown pools in both the GNMA I and GNMA II programs, said Nomura Securities International’s head of mortgage research Art Frank in a press conference held today.

Frank said that prior to July 1, most FHA buydown loans were placed into generic GNMA II pools. In these buydown mortgages, the home seller , which is often the builder of a new development, pays 2% interest in the first year and 1% interest in the second year

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