Ginne Mae To Securitize First FHA High-Balance Loans
Mar 6, 2008
Washington, DC – The Government National Mortgage Association (Ginnie Mae) is announcing that pools backed by the Federal Housing Administration's (FHA) temporary, high-balance loans will be ready for April 1, 2008 issuance. Ginnie Mae will create a new multiple-issuer security under the Ginnie Mae II Mortgage-Backed Securities Program to accommodate these loans.
"We believe it's important that Ginnie Mae support the stimulus package and create a vehicle that will improve market liquidity as soon as possible," said Thomas R. Weakland, Acting Vice President of Ginnie Mae. "This new security will enable more borrowers to qualify for safe, affordable FHA-insured loans, which is critically important as the mortgage industry continues to navigate the ongoing market upheaval."
All single-family loans higher than FHA's current loan limit of 2,790 will be eligible for inclusion in the new pools.
"A government-insured mortgage, coupled with the safety and liquidity of a Ginnie Mae security will greatly benefit homeowners, lenders and investors," Weakland continued.
The Economic Stimulus Act of 2008 allows FHA to insure higher balance loan through December 31, 2008.
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