GNMA-II

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GNMA-II

Mortgage-backed securities (MBS) on which registered holders receive an aggregate principal and interest payment from a central paying agent on all their certificates. Principal and interest payments are disbursed on the 20th day of the month. GNMA-II MBS are backed by multiple-issuer pools or custom pools (one issuer but different interest rates that may vary within one percentage point). Multiple-issuer pools are known as "jumbos." Jumbo pools are generally longer and offer certain mortgages that are more geographically diverse than single-issuer pools. Jumbo pool mortgage interest rates may vary within one percentage point.

GNMA-II

A certain type of mortgage-backed, pass-through security issued by Ginnie Mae. Mortgages backing each GNMA-II may be made by different issuers and/or have different interest rates. The mortgages may be more geographically diverse or have other special features that reduce their risk. GNMA-II is pronounced "Ginnie Mae Two."
References in periodicals archive ?
Further, the minimum servicing fee for each GNMA II pool or loan package dropped to 19 basis points, representing the minimum note rate/security rate spread of 25 basis points minus the 6 basis points Ginnie Mae Guarantee Fee.
In effect, this lowered the servicing spread of note rates eligible for securitization within a GNMA II pool or loan package to 25 to 75 basis points above the security rate.
In support of its position, PSA cited that GNMA II securities, which contain buydowns, trade 6 to 10 basis points cheaper than GNMA I single-family securities.
For example, the wider range of coupons, the delayed principal and interest payment date to investors, and,the lack of liquidity in these securities, all contribute to altering the yield of the GNMA II security and are reflected in the price difference between GNMA I and II securities.
Loans were delivered into both GNMA I and GNMA II MBS pools.
Currently, Ginnie Mae's GNMA II program features securities backed by mortgage rates substantially higher than the security rate, with issuers receiving a variable servicing fee and investors paid on the 20th of the month.
When the changes are implemented, the GNMA II security will more closely resemble the agency's GNMA I security, a flagship of the mortgage finance market for more than 30 years.
Unlike the other secondary market agencies (prior to the adoption of their acknowledgment agreements), GNMA has expressly permitted the pledging of GNMA servicing provided the terms comply with the relevant terms of the GNMA Mortgage-Backed Securities Guide (Section 3-4 for GNMA I program and Section 5-8 for GNMA II program).
rehabber loans may now be pooled under the GNMA II multiple issuer program.
We have made the GNMA II program more effective for all types of lenders," Rosenfeld said.
The changes also make GNMA II securities more attractive to investors.
Currently, the GNMA II program features securities backed by mortgage rates substantially higher than the security rate, with issuers receiving a variable servicing fee and investors paid on the 20th of the month.