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 ?
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.
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.