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 ?
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.
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.
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).
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.
Responding to MBA's request, these builder.rehabber loans may now be pooled under the GNMA II multiple issuer program.
One example of this was an investor reporting department that could not balance its GNMA II ARM and GPM pools.
The minimum service fee is currently 0.25 percent for the GSEs and 0.19 percent for GNMA IIs. (This column will not deal with GNMA is because the minimum service fee is 0.44 and the guarantee fee is 0.06--thus there is no effective excess).