Guarantees securities backed by government-insured mortgages.

Nature of Program: Ginnie Mae guarantees investors (security holders) the timely payment of principal and interest on securities issued by private lenders that are backed by pools of Federal Housing Administration (FHA), Veterans Affairs (VA), Rural Housing Service (RHS), and Public and Indian Housing (PIH) mortgage loans. The full faith and credit guarantee of the U.S. Government that Ginnie Mae places on mortgage-backed securities (MBS) lowers the cost of, and maintains the supply of, mortgage financing for government-backed loans.

Ginnie Mae I: Ginnie Mae I MBS are modified pass-through mortgage-backed securities on which registered holders receive separate principal and interest payments on each of their certificates. The underlying mortgages generally have the same or similar maturities and the same interest rate on the mortgages. Single-family Ginnie Mae I pools have a 50 basis point (0.5 percent) guaranty and servicing fee. The Ginnie Mae I MBS also permits the securitization of multifamily mortgages.

Ginnie Mae II: Ginnie Mae II MBS are modified pass-through mortgage-backed securities for which registered holders receive an aggregate principal and interest payment from a central paying agent. The Ginnie Mae II MBS allows small issuers who do not meet the dollar requirements of the Ginnie Mae I MBS program to participate in the secondary mortgage market. In addition, the Ginnie Mae II MBS permits the securitization of adjustable rate mortgages (ARMs). The Ginnie Mae II MBS have a central paying and transfer agent that collects payments from all issuers and makes one consolidated payment to each security holder.

Applicant Eligibility: Issuers must:

• Be approved FHA mortgagees in good standing.
• Possess demonstrated experience and management capability in the underwriting, origination, and servicing of mortgage loans. Issuers may utilize a Ginnie Mae-approved sub-servicer; but must have a staff member to oversee sub-servicer performance.
• Have fidelity bond and a mortgagee errors and omissions policy in effect.
• Have a quality control plan in place for underwriting, originating, and servicing mortgage loans as well as for secondary marketing.
• Meet and maintain financial requirements as specified in the MBS Guide.

Legal Authority: Section 306(g) of the National Housing Act (12 U.S.C. 1721(g)) Regulations are at 24 CFR Part 320.

Information Sources: Government National Mortgage Association (Ginnie Mae); Office of Issuer & Portfolio Management.

On the Web: https://www.ginniemae.gov/about_us/what_we_do/Pages/programs_products.aspx

Current Status: Active.

Guarantees the timely payment of principal and interest as provided by the terms of the multiclass security.

Nature of Program: The Ginnie Mae Multiclass Securities program increases the liquidity of Ginnie Mae MBS and attracts new sources of capital for federally-insured or guaranteed loans.

REMIC Securities: Real Estate Mortgage Investment Conduits (REMICs) direct principal and interest payments from underlying mortgage-backed securities to classes with different principal balances, interest rates, average lives, prepayment characteristics and final maturities. They allow investors with different investment horizons, risk-reward preferences and asset-liability management requirements to purchase MBS tailored to their needs.

Unlike traditional pass-throughs, the principal and interest payments in REMICs are not passed through to investors pro rata; instead, they are divided into varying payment streams to create classes with different expected maturities, different prices and interest rate sensitivities. The assets underlying REMIC securities can be either other MBS or whole mortgage loans.

Platinum Securities: A Ginnie Mae Platinum security is formed by combining Ginnie Mae MBS pools that have uniform coupons and original terms to maturity into a single certificate. Investors owning smaller pools of Ginnie Mae MBS can combine new or existing MBS into larger Ginnie Mae Platinum pools. A Ginnie Mae Platinum security may be used in structured financings, repurchase transactions, and general trading.

Ginnie Mae Platinum pool processing costs for investors, for monthly principal and interest payments, are lower due to the fact that multiple MBS pools are combined into one larger pool. Ginnie Mae requires that the pool of Ginnie Mae MBS underlying a Ginnie Mae Platinum pool consists entirely of Ginnie Mae I MBS or entirely of fixed-rate Ginnie Mae II MBS. In both cases, the securities must have the same pool type, coupon rate and delivery eligibility. Both 30- year and 15-year Ginnie Mae MBS Certificates are eligible for Ginnie Mae Platinum pools. Ginnie Mae Platinum pools can be created from seasoned or current MBS production; depositors can contribute entire or partial pools of Ginnie Mae MBS certificates.

Ginnie Mae guarantees the timely payment of principal and interest on each Ginnie Mae Platinum pool. This guaranty is backed by the full faith and credit of the United States government. In exchange for Ginnie Mae's guaranty of the Ginnie Mae Platinum pool, a guaranty fee is charged.

SMBS Securities: "Stripped" Mortgage-Backed Securities (SMBS) are created by stripping apart the principal and interest payments from the underlying mortgage-related collateral into two or more classes of securities. SMBS allow sophisticated investors to reduce or increase prepayment risks by isolating and combining various interest only and principal only cash flow components.

Each Trust will be comprised primarily of:

• Fully modified pass-through mortgage-backed certificates as to which Ginnie Mae has guaranteed the timely payment of principal and interest pursuant to the Ginnie Mae I Program or the Ginnie Mae II Program,
• Certificates backed by Ginnie Mae MBS certificates as to which Ginnie Mae has guaranteed the timely payment of principal and interest pursuant to the Ginnie Mae Platinum Program,
• REMIC or comparable mortgage certificates, or
• Previously issued Ginnie Mae guaranteed SMBS, in each case, evidencing interests in Trusts consisting primarily of direct or indirect interests in Ginnie Mae Certificates, as further described in the related Offering Circular Supplement.

Each series will be issued in two or more classes. Each class of securities of a series will evidence an interest in future principal payments and/or an interest in future interest payments on the Trust assets included in the related Trust. The Trust created for each issue of SMBS will be classified as a Grantor Trust.

Callable Trusts: Callable Securities are subject to redemption by the Holder of the Call Class Securities at the time or times specified in the related Callable Trust Agreement. Each Callable Series of Securities will consist of one or more paired Classes: a "Call Class" and a "Callable Class." The Securities will evidence interests in separate trusts (each, a "Callable Trust").

Legal Authority: Section 306(g) of the National Housing Act (12 U.S.C. 1721(g)) Regulations are at 24 CFR Part 330.

Information Sources: Government National Mortgage Association (Ginnie Mae); Office of Capital Markets.

On the Web: https://www.ginniemae.gov/investors/multiclass_resources/Pages/multiclasssecurities-guide.aspx

Current Status: Active.