Ginnie Mae Announces IO-MBS Program Backed by Excess Mortgage Servicing Fees
June 9, 2006
Ginnie Mae is providing guarantees for a new interest-only mortgage-backed securities program backed by the excess portion of monthly fees paid to service mortgage loan pools backing previously issued Ginnie Mae II securities. A final rule published by the Department of Housing and Urban Development in the June 5 Federal Register affirmed Ginnie Mae’s authority to implement the “Excess Yield Securities” program. The rule also creates a regulation for the program. …