Ginnie Mae says it's changing the Platinum program's guaranty fee structure and lowering the minimum amount needed to create a Ginnie Mae Platinum Security. The changes are effective for October 2015 settlements and thereafter.
‘The Platinum program is an efficient mechanism for investors to manage their Ginnie Mae securities,’ says John Getchis, Ginnie Mae's senior vice president of capital markets. ‘We want to encourage utilization of the program by lowering the G-Fee, the minimum amount investors need to create a platinum security, which will increase the administrative, pricing and distribution efficiency of the mortgage-backed securities program.’
Ginnie Mae Platinum Securities allow investors to combine Ginnie Mae mortgage-backed securities pools with uniform mortgage interest rates and original terms to maturity into a single security. Investors then receive a single payment from the combined securities every month, rather than separate payments from each individual security.
Ginnie Mae Platinum Securities are attractive because they lower administrative costs and improve liquidity, particularly for small pools. They can be used in structured finance transactions, repurchase transactions and general trading.
To learn more about the changes to the program, click here.