Home Equity Conversion Mortgage Loan Packages

Home Equity Conversion Mortgage pool (HECM) loans. The requirements in this chapter …… National Mortgage Association or Federal Home Loan ….

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SPECIAL REQUIREMENTS (HECM / HMBS) Ginnie Mae 5500.3, Rev. 1 35-1 Date: 10/01/08 CHAPTER This chapter describes the special requirements that apply to a pool of Home Equity Conversion Mortgage (HECM) loans. The requirements described in this chapter may modify, supplement or in some cases repeat, for the purposes of emphasis, those requirements set forth in previous chapters with respect to Issuer eligibility, mortgage eligibility, pool requirements, required pool and submission documents and the actual HMBS securities. From time to time, balances related to a HECM loan may be pooled into HMBS securities. …
HMBS Security The pool of collateral that is specifically and uniquely associated with the HMBS security, which includes the related Must be accounted for and reported on pursuant to Ginnie Mae’s HMBS program requirements, as communicated in this Guide. HMBS Pool of Collateral Separate Participations in a single HECM loan may serve as collateral in multiple HMBS pools. Issuers must be able to s pecifically identify, at the HECM loan level, all all related HMBS pools.
Ginnie Mae will review the request and notify the applicant in writing of its decision. The Ginnie Mae application fee is not required for existing Issuers who seek approval to issue HMBS. If additional information is requested by Ginnie Mae, the applicant has 60 days to provide i t. If the requested information is not submitted to Ginnie Mae within 60 calendar days, the application package will be rejected and returned. If the application is denied, Ginnie Mae will advise the applicant in writing of the reason(s) for its decision.
HMBS Issuers may select, at their discretion, the timing and frequency of pooling Participations, so long as pooling requirements are met. (3) Consider, for example, a HECM loan originated in January with a net principal limit of $125,000, a Maximum SPECIAL REQUIREMENTS (HECM / HMBS) Ginnie Mae 5500.3, Rev. 1 35-8 Date: 10/01/08 Claim Amount of $225,000, an initial principal balance of $65,000 (the initial amount drawn by the mortgagor) and a fixed interest rate of 7%. This initial principal balance of $65,000 can be securitized into a security (HMBS #1) as the first Participation of the HECM loan. The servicing fee arrangement. The Servicing Fee Margin (described below) with respect to the HECM loan is 0.25%….

Download Home Equity Conversion Mortgage Loan Packages pdf from www.ginniemae.gov, 31 pages, 279.27KB.