GNMA-II

(redirected from GNMA II Securities)

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 ?
By lowering the servicing fee minimum, issuers of GNMA II securities will have more flexibility in how they assemble mortgages into securities, according to Ginnie Mae President Ronald Rosenfeld.
The changes also make GNMA II securities more attractive to investors.
PSA reasoned that, if an unlimited amount of 2-1 buydowns were to be included in GNMA I pools, then GNMA I securities would trade closer to the GNMA II securities.