Ginnie Mae Summit 2014 - Program

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y leveraging the full faith and credit of the U.S. Government to access global capital. Ginnie Mae’s business model significantly limits the taxpayers’ exposure to risk associated with secondary market transactions. Its strategy is to guarantee a simple pass-through security to lenders rather than to buy loans and issue its own securities. Because private lending institutions originate eligible loans, pool them into securities and issue Ginnie Mae MBS, the corporation’s exposure to risk is limited to the ability and capacity of its MBS Issuer partners to fulfill their obligations to pay investors. By guaranteeing the servicing performance of the Issuer – not the underlying collateral – Ginnie Mae insulates itself from the credit risk of the mortgage loans. GINNIE MAE PRODUCTS & PROGRAMS Ginnie Mae offers reliable solutions to meet the needs of Issuers and investors. Our products and programs provide the flexibility necessary to respond to market changes. At the core of Ginnie Mae’s business model is the simple pass-through security, which comes in the form of two product structures – Ginnie Mae I Mortgage-Backed Securities (MBS) and Ginnie Mae II MBS. GINNIE MAE I MBS Single-Issuer pools Note rates on underlying mortgages are fixed and all the same. Acceptable collateral: • To-Be-Announced (TBA) eligible: Single- Family Level-Payment Mortgages • Non-TBA eligible: Buydown Mortgages, Graduated Payment Mortgages, Growing Equity Mortgages, Serial Notes, Manufactured Home Loans, Project Loans, Construction Loans GINNIE MAE II MBS Single- or Multiple-Issuer pools Multiple note rates on underlying mortgages— limited to a range of 50 basis points. Acceptable collateral: • TBA eligible: Single-Family Level-Payment Mortgages, including up to 10 percent Buydown Mortgages • Non-TBA eligible: Adjustable-Rate Mortgages, Graduated Payment Mortgages, Growing Equity Mortgages, Serial Notes, Manufactured Home Loans, Home Equity Conversion Mortgage (HECM) Loans Larger pool size More demographically and geographically diverse Customizable pools SINGLE-FAMILY MBS PROGRAM Ginnie Mae’s MBS are backed by single-family mortgages that originated through the Federal Housing Administration (FHA), the U.S Department of Agriculture’s Rural Development (RD), the U.S Department of Housing and Urban Development’s Office of Public and Indian Housing (PIH), and the U.S. Department of Veterans Affairs (VA) home loan program.
Within the Single-Family MBS program, the Targeted Lending Initiative (TLI) provides incentives for lenders to increase loan volumes in traditionally underserved areas. Established in 1996, the TLI program offers discounts ranging from one to three basis points on Ginnie Mae’s six-basis-point guaranty fee, depending on the percentage of TLIeligible loans within the pool or loan package. The reduced fee motivates lenders to originate loans in these distressed areas. MULTIFAMILY MBS PROGRAM Ginnie Mae’s mission of supporting affordable housing extends to ensuring that adequate rental homes remain within reach of those who need them. By guaranteeing multifamily MBS that are sold to investors in the global capital markets, Ginnie Mae enables lenders to reduce mortgage interest rates paid by developers and property owners of apartment buildings, hospitals, nursing homes, assisted-living facilities and other structures. MANUFACTURED HOUSING PROGRAM Manufactured housing plays an integral role in affordable housing across the United States housing market today. Ginnie Mae’s Manufactured Housing (MH) MBS program allows for the issuance of Ginnie Mae pools for loans insured by FHA’s Title I program, which are used to finance manufactured housing. Manufactured housing loans can be pooled into MH MBS within the Ginnie Mae II Program. HMBS PROGRAM Ginnie Mae’s Home Equity Conversion Mortgages (HECM) securities program provides capital and liquidity for FHA-insured reverse mortgages. HECM loans can be pooled into HECM mortgage-backed securities (HMBS) within the Ginnie Mae II MBS program. They also can serve as collateral for Real Estate Mortgage Investment Conduits (REMICs) backed by HMBS (H-REMICs). Ginnie Mae had a pioneering role in developing a liquid securities market for reverse mortgages, enabling senior citizens to have access to the equity in their homes during challenging economic times. MULTICLASS PRODUCTS Ginnie Mae MBS also serve as the underlying collateral for multiclass products, such as REMICs, Callable Trusts, Platinum Securities and Stripped Mortgage-Backed Securities (SMBS). These structured transactions allow the private sector to combine and restructure cash flows from Ginnie Mae MBS into securities that meet unique investor requirements for yield, maturity and call-option protection. They also help to increase liquidity in the secondary mortgage market and to attract new sources of capital. REMICS CALLABLE TRUSTS PLATINUM SECURITIES SMBS REMICs are investment vehicles that reallocate pass-through cash flows from underlying mortgage obligations into a series of different bond classes, known as tranches, which vary based on term and prepayment risk. Callable trusts are investment vehicles that allow investors the flexibility to redeem or call a security prior to its maturity date under certain conditions to hedge against fluctuating interest rate environments. Platinum securities are investment vehicles that allow investors who hold multiple pools of MBS to combine them into a single Ginnie Mae Platinum Security. SMBS are investment vehicles that are custom-designed securities that redirect MBS principal and/or interest cash flows to meet investors’ specific objectives. Ginnie Mae guarantees the timely payment of principal and interest on each class of SMBS. 25
Page 2 and 3: TABLE OF CONTENTS 03 Welcome from T
Page 4 and 5: PROGRAM OF EVENTS SUN 21 SEPT 3:00-
Page 6 and 7: MON 22 SEPT Kathleen Gibbons, Senio
Page 8 and 9: TUES 23 SEPT Rick Garner, Manager,
Page 10 and 11: ABOUT THE SPEAKERS HONORABLE JULIÁ
Page 12 and 13: MARY K. KINNEY Executive Vice Presi
Page 14 and 15: GREGORY A. KEITH Senior Vice Presid
Page 16 and 17: elationships in the Single-Family M
Page 18 and 19: RENÉ MONDOÑEDO Senior Mortgage Ba
Page 20 and 21: John’s primary responsibilities i
Page 22 and 23: ABOUT GINNIE MAE MISSION Ginnie Mae
Page 26 and 27: GINNIE MAE ACCOUNT EXECUTIVES SINGL
Page 28: AGENDA IN BRIEF SUNDAY, SEPT 21 3:0

Ginnie Mae Summit 2014 - Program

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