Ginnie Mae MBS Guide
Ginnie Mae 5500.3, Rev. 1 24-3 ginniemae.gov
respectively. The maximum weighted average servicing fee at issuance cannot
exceed 72 basis points.
With respect to multiple Issuer pools and loan packages, (M SF), no more than
ten percent (10%) of the aggregate original principal balance of the mortgage
loans in a SF pool may consist of buydown loans. Within a loan package,
buydown loans may exceed ten percent (10%) of the aggregate original principal
balance of the loans in the loan package. However, when creating a multiple
Issuer SF pool, if the Pool Processing Agent (PPA) determines that the pool
contains more than ten percent (10%) buydown loans, the PPA will determine
which Issuer has the highest percentage of buydown loans in their loan package.
The loan package with the highest percentage of buydown loans will be deleted
from the multiple Issuer pool. The recalculation and removal process will
continue until the pool reaches the ten percent (10%) threshold. Issuers whose
loan package has been rejected will be contacted by the PPA. Issuers whose
loan package does not exceed the ten percent (10%) threshold will not be
subject to removal from the multiple Issuer pool.
An M SF pool or loan package may not contain both buydown loans and High
Balance Loans.
Interest escrow custodial account: An interest escrow custodial account must be
maintained in connection with buydown mortgages for the deposit of buydown funds
provided by the Issuer. This account must meet Ginnie Mae’s escrow custodial
account requirements and it must meet FHA’s and VA’s requirements for such
accounts. (Please See MBS Guide Chapter 16, Part 5)
Loan amount: The original principal amount of the mortgage for FHA loans is limited
to the amount permitted for a particular geographic area pursuant to section
203(b)(2), section 214 or section 220(d)(3)(A)(i) of the National Housing Act. For VA
loans see MBS Guide, Ch. 24, Part 2, § A(3) below. For RD loans see MBS Guide,
Ch. 24, Part 2, § A(4) below. For PIH loans see MBS Guide, Ch. 24, Part 2, § A(5)
below.
With respect to Ginnie Mae I “X SF” and Ginnie Mae II “M SF” pools, the aggregate
amount of the issue date unpaid principal balance of the High Balance Loans, as
defined in MBS Guide, Ch. 9, Part 2, § B, may not exceed 10% of the original
principal balance
With respect to Ginnie Mae I “X BD” and “X SN” pool types as well as Ginnie Mae II
“M JM”, “M FS”, “All ARMS”, “C SF”, “C RG”, “C ET” and “C BD” pool types, Issuers
may pool High Balance Loans in excess of 10% of the original principal balance of
each pool or loan package.
Builders' inventories: FHA-insured loans made for the purpose of financing builders'
inventories, including operative builder, builder/investor, and escrow commitment
procedure loans, are not eligible for an SF pool. The Issuer is responsible for
determining whether a loan is intended to be used for financing a builder's
inventory.