Chapter 35: Home Equity Conversion Mortgage Loan Pools Special .
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)35-1: OVERVIEW OFCHAPTERThis chapter describes the special requirements that apply to apool of Home Equity Conversion Mortgage (HECM) loans. Therequirements described in this chapter may modify, supplementor in some cases repeat, for the purposes of emphasis, thoserequirements set forth in previous chapters with respect toIssuer eligibility, mortgage eligibility, pool requirements, requiredpool and submission documents and the actual HECMmortgage-backed securities (HMBS).From time to time, balances related to a HECM loan may bepooled into HMBS securities. These balances, which representparticipation interests in the related HECM loan, are referred toherein as Participations.Participation interests generallyconsist of advances made to borrowers, monthly insurancepremiums paid to FHA, certain servicing fees and accruedinterest, which may include certain servicing fees and guarantyfees. HECM loans, also commonly referred to as “reversemortgage loans,” are FHA-insured loans designed specifically topermit senior citizens to convert the home equity of theirprincipal residence into cash. No interest or principal paymentsare due on the mortgage until maturity, which is triggered uponthe occurrence of a number of different events discussed in thischapter. Interest, however, accrues daily on the HECM loanand is added to the borrower’s remaining principal balance atmonth end.HMBS securities are accrual class pass-through securities andtherefore do not provide scheduled payments of principal orinterest to investors. Interest accruing on the security is addedeach month to the remaining principal balance of the security.Unscheduled payments of principal and interest will generally bepassed through to security holders under the followingcircumstances: (i) when a full or partial payment is made on arelated HECM loan which is related to a Participation that backsan HMBS security and/or (ii) upon the purchase of allParticipations of the related HECM loan, by the Issuer, for areason specifically authorized in the applicable GuarantyAgreement (Appendix III-27) or in this Guide.HMBS pools may only be formed under the Ginnie Mae IICustom MBS Program. Multiple Issuer pools are ineligible forHMBS pooling.This chapter will review the program requirements unique to theHMBS pooling process, and, where applicable, refer the Issuerfor guidance to other sections of the MBS Guide when programrequirements remain unchanged. HMBS Issuers may obtainadditional information about the HECM mortgage insuranceprogram from FHA.Ginnie Mae 5500.3, Rev. 135-1Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)HMBS Program Highlights - ”At a Glance”:EntityHMBS SecurityHMBSPool of CollateralHECM LoanPayment to SecurityHolderParticipationRelationship RulesAdministrationThe HMBS Security is a unique entityspecifically identified by a “Ginnie Mae”pool number, EIN Number and CUSIP.The pool of collateral that is specificallyand uniquely associated with the HMBSsecurity, which includes the relatedParticipations.Separate Participations in a single HECMloan may serve as collateral in multipleHMBS pools.There may exist a “One-to-Many”relationship between a specific HECM loanpayment and the associated Participationsand related HMBS securities. As such, anyunscheduled borrower payments must bepro rated among all related Participationsas a percentage of the outstandingprincipal balance of the related HECMloan.A Participation is that portion of a HECMloan securitized into an HMBS security.One HECM loan may have multipleParticipations in various HMBS securitiesthroughout the life of the loan. AlthoughHMBS securities will likely contain manyParticipations from many different HECMloans, there may only exist a one-to-onerelationship between any one Participationand the HMBS security for which it servesas pool collateral.Must be accounted for and reported on pursuantto Ginnie Mae’s HMBS program requirements,as communicated in this MBS Guide.Must be accounted for and reported on pursuantto Ginnie Mae’s HMBS program requirements,as communicated in this MBS Guide.Issuers must be able to specifically identify, atthe HECM loan level, all Participations acrossall related HMBS pools.Payments to security holders must beaccounted for at both the HECM loan level andthe Participation level, and appropriatelysummarized at the security level. Unscheduledpayments to security holders must be reportedmonthly with RPB reporting obligations.Participations must be specifically linked to theHECM loan and to the HMBS pool in which itserves as collateral. Participations must also bespecifically accounted for in monthly Issuerreporting obligations.Basic Relationship Rules between HECM Loans, Participations & HMBS Pools* This “At-A-Glance” Chart is intended to provide a general description of the mechanics of the HMBS Program.35-2: ISSUER ELIGIBILITYREQUIREMENTSEach entity, including an existing Issuer, must apply for approvalto issue HMBS pools. Each approved applicant will be assignedan Issuer identification number that may only be used to issueHMBS pools. The HMBS Issuer identification number must beused on all correspondence and communication with GinnieMae.(A) Existing IssuerEligibilityAn existing Issuer in good standing is eligible to requestapproval to issue HMBS securities.Ginnie Mae 5500.3, Rev. 135-2Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)To request approval, the Issuer should submit a letter of interestto Ginnie Mae’s Office of Issuer & Portfolio Management (seeAddresses) and include applicable documents from Appendix I1. The request for approval must demonstrate the applicant’sability to satisfy the following eligibility requirements:(1)Experience originating and servicing HECM loans;(2)Capacity to perform Participation tracking andHECM loan accounting. If an Issuer elects to fulfillthe participation tracking and monitoringrequirement using a third party “ParticipationAgent”, the Issuer is fully responsible for the workperformed under that arrangement. An Issuermay contract with only one Participation Agent toperform all monitoring and accounting activitiesrelated to pooled Participations, as designated inform HUD 11706H (see Appendix I-7); and(3)Financial requirements described in Chapter 3.Ginnie Mae will review the request and notify the applicant inwriting of its decision. The Ginnie Mae application fee is notrequired for existing Issuers who seek approval to issue HMBS.If additional information is requested by Ginnie Mae, theapplicant has 60 days to provide it. If the requested informationis not submitted to Ginnie Mae within 60 calendar days, theapplication package will be rejected and returned.If the application is denied, Ginnie Mae will advise the applicantin writing of the reason(s) for its decision.Ginnie Mae, in its sole discretion, may refuse to grant anyrequest for HMBS Issuer approval if it determines that theapplicant has failed to meet the specific requirements set forthin this MBS Guide, or if Ginnie Mae otherwise determines thatapproval of the applicant would be detrimental to the MBSProgram.(B) New Issuer EligibilityA new entity that wishes to issue HMBS securities must firstcomply with all Ginnie Mae program eligibility requirementsdescribed in Chapter 2 and the application procedure describedin Chapter 7. The entity will then need to satisfy the eligibilityrequirements set forth above in Section 35-2(A).35-3: ISSUER RISKS ANDLIABILITIESAn HMBS Issuer has certain obligations that may not becustomary for a mortgage servicer in the private sector. EachIssuer must be aware of these obligations and must makesuitable financial arrangements to ensure that it has thecapacity to fulfill them. Some of the risks and liabilities are moreGinnie Mae 5500.3, Rev. 135-3Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)generally described in Chapter 5 and elsewhere in this MBSGuide.(A) Purchase EventsIssuers are responsible for purchasing any Participation whenthe outstanding principal balance of the related HECM loan isequal to or greater than 98% of the Maximum Claim Amount.Section 35-10 describes this Mandatory Purchase Event. Inaddition, Section 35-10 describes certain optional purchaseevents.The Issuer must purchase any related Participation in anyoutstanding HMBS pools when a Mandatory Purchase Eventoccurs, regardless of whether the Issuer receives timelyinsurance payments, if at all. If insurance payments are notavailable, the Issuer must apply its own funds to acquire theParticipations upon the occurrence of a Mandatory PurchaseEvent.Under certain circumstances, for instance when a HECM loanbecomes due and payable, an Issuer may not be able to assignthe mortgage to FHA. In this instance, the Issuer must utilize itsown funds to purchase any outstanding Participations.Issuers are responsible for using their own funds to ensure thatsecurity holders receive any outstanding principal and interestdue on the Final Distribution Date.(B) Interest Due SecurityHolders But Not Payableby MortgagorAn Issuer is responsible for making funds available for interestpayments due security holders even if associated interestpayments are not required to be paid by the mortgagor on theunderlying Participation. When a mortgage is prepaid, either inpartial or full repayment before the end of the month, themortgagor pays interest only until the payoff date. With HECMs,the mortgagee must, according to FHA requirements, permit themortgagor to prepay at any time without penalty. Securityholders, however, are entitled to interest through the end of themonth. The Issuer must make up any interest payment shortfalldue security holders from its own funds.(C) Costs Related toDefective MortgagesIf a HECM loan is found to be defective at any time after therelated Participations have been pooled, the Issuer must curethe defect or purchase all related Participations. Substitutionsof Participations related to HECM loans in HMBS pools are notpermitted. An Issuer must receive prior written permission fromGinnie Mae’s Office of Issuer & Portfolio Management beforepurchasing Participations related to defective HECM loans. Arequest to purchase all Participations related to a defectiveGinnie Mae 5500.3, Rev. 135-4Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)HECM loan must be submitted to the Office of Issuer & PortfolioManagement (see Addresses) in accordance with the FormLetter for Loan Purchase (Appendix VI-2).(D) Pool AdministrationCostsIssuers are responsible for all pool administration costs asdescribed in this chapter and in Chapter 5, generally.Administration costs for HMBS pools include those associatedwith tracking, accounting for and monitoring the pooledParticipations, in addition to servicing the related HECM loans.(E) Guaranty FeeIssuers are required to pay a monthly guaranty fee to GinnieMae for each HMBS security for which the Issuer is Issuer ofrecord.The Issuer pays the monthly guaranty fee by making adequatefunds available in the central P&I custodial account for ACHdebit by the CPTA (See Section 6-4). The CPTA calculates theamount of the guaranty fee using the RPB data from theMonthly Pool, Loan and Participation level accounting datareported by the Issuer in the preceding month (See reportingrequirements in Section 35-12 and Appendix VI-17, HMBSIssuer Pooling and Reporting Specification).1. Computing the Guaranty Fee: The monthly guaranty feeis computed based on the aggregate principal balance ofthe guaranteed securities outstanding at the beginning ofthe monthly reporting period. The monthly rate used tocompute the fee is the annual rate of .06 percent (6basis points) divided by 12 months.2. HMBS Guaranty Fee Deposits and Collection: No laterthan 7 a.m. (EST) on the 19th calendar day of thepayment month (collection date) the Issuer must depositinto its designated central P&I custodial account “sameday funds” or “good funds” equal to the amount neededto pay the fees. The CPTA notifies the Issuer on the 7thbusiness day of the amount of the guaranty fee to bedebited on the collection date. On that specified date,each Issuer’s central P&I custodial account will bedebited via ACH for the guaranty fee amount reported.The monthly collection of guaranty fees via ACH debitwill occur at 7:00am (EST) on the 19th calendar day ofthe month, if that day is a business day. If the 19thcalendar day is not a business day, then collection willoccur on the 20th calendar day if that day is indeed abusiness day. If neither the 19th nor 20th calendar daysof the month are business days, then the applicablecollection date must be the first business dayGinnie Mae 5500.3, Rev. 135-5Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)immediately preceding the 19th calendar day of themonth.(F) ExtinguishmentIf Ginnie Mae declares a default and extinguishment under theapplicable Guaranty Agreement, the Issuer forfeits and waivesany and all rights to reimbursement or recovery of any of its ownfunds used to satisfy the obligations of the HECM mortgagor,including expenditures or accruals related to the pooledParticipations. This includes, but is not limited to, accruedinterest, funds applied to or on behalf of mortgagors, servicingfees, monthly insurance premiums paid to FHA, and otheramounts added to the HECM loan balance even if suchamounts have not been pooled in an HMBS security.35-4: APPLICATION FORCOMMITMENTAUTHORITY, LOANNUMBERS AND POOLNUMBERSIn order to participate in the HMBS program, the Issuer mustapply for and obtain from the Office of Issuer & PortfolioManagement single family commitment authority and poolnumbers.(A) Application forCommitment Authorityand Pool NumbersTo participate in the HMBS program, Issuers must requestcommitment authority and pool numbers as described both inChapter 8 and in Section 35-4(B), below. Applications forcommitment authority must be made electronically throughGinnieNET, using an Issuer’s HMBS identification number.Issuer requests for commitment authority should cover theIssuer’s production schedule for 120 days.Commitmentauthority usage will be based on the original principal balance ofthe HMBS security at pooling.(B) Unique LoanIdentifiersA unique Ginnie Mae loan identification number shall beassigned to each HECM loan by the CPTA.35-5: PARTICIPATIONREQUIREMENTSEach issue of HMBS securities must be backed by a separatepool of Participations, each of which must comply with thefollowing requirements:(A) Relationship to HECMMortgage(1)A Participation is that portion of a HECM loan that anIssuer pools into a Ginnie Mae HMBS. Each pooledParticipation must relate to a single HECM loan, and thatHECM loan must satisfy the mortgage eligibilityrequirements discussed below in Section 35-6.(2)A Participation is an interest in the principal balance of aHECM loan that has been pooled in an HMBS pool (i) thatdoes not represent interests backing any other pooledParticipation and (ii) that has an original principal amountand Participation interest rate as shown in the Scheduleto the applicable Guaranty Agreement. The outstandingGinnie Mae 5500.3, Rev. 135-6Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)principal balance of a HECM loan may include fundsprovided by the Issuer on behalf of mortgagors, including,for instance, funds to pay taxes and insurance, servicingfees, mortgage insurance premium (MIP) payments andinterest accruing on the HECM note, a portion of whichmay be attributable to the Ginnie Mae guaranty fee.As the mortgagor’s loan balance increases each month,the loan balance that is not otherwise pooled and doesnot represent any interest backing another Participation,is eligible to be securitized as a new Participation inanother HMBS pool.Interest that accrues on a Participation at the relatedParticipation interest rate will be added to the principalamount of such Participation and thus will not be eligibleto be securitized as a new Participation. As discussedbelow, the Participation Interest Rate is the note rate ofthe related HECM loan less the related Servicing FeeMargin. Because the note rate is reduced by theServicing Fee Margin, amounts accrued in respect of theServicing Fee Margin, and interest accruals thereon at thenote rate, do not accrue to the principal amount of theParticipation. Amounts added to the outstanding balanceof a HECM loan in respect of MIP, servicingcompensation paid on a flat monthly fee arrangement andadditional amounts drawn by the mortgagor, as well asany interest accrued on any such amounts, at the noterate, are not included in the Participation Interest Rateand are not added to the principal amount of any existingParticipation. Such amounts, as well as any amountsadded to the outstanding balance of a HECM loan inrespect of the Servicing Fee Margin with respect to anyParticipation (including any interest accrued thereon atthe note rate), are eligible to be included in a futureParticipation and securitized in a future HMBS Security.HMBS Issuers may select, at their discretion, the timingand frequency of pooling Participations, so long aspooling requirements are met.(B) Minimum AmountA Participation may be of any dollar amount; there is no limit onthe number of Participations associated with a given HECMloan.(C) ParticipationIdentification NumberThe Issuer must assign to each Participation a unique three digitidentification number appended as a suffix to the unique GinnieMae loan identifier. This suffix will then be used to tie theGinnie Mae 5500.3, Rev. 135-7Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)pooled Participation back to the related HECM loan. As Issuerspool successive portions of a mortgagor’s HECM loan intoParticipations, each successive Participation suffix must beassigned sequentially. i.e., “001”, “002”, etc.(D) Participation InterestRateEach Participation bears a Participation Interest Rate equal tothe note rate of the related HECM loan, less the Servicing FeeMargin. For adjustable rate HECM loans, Participation InterestRates must change on the same index adjustment date of therelated HECM loan.(E) Servicing Fee Margin(1)The Servicing Fee Margin generally represents theamount of the servicing compensation payable to theIssuer (other than servicing compensation paid on a flatmonthly fee arrangement) to cover the Issuer’s servicingcosts, including the guaranty fee. The Servicing FeeMargin is established by the issuer at pooling and shallnot change throughout the life of the Participation. TheServicing Fee Margin may vary depending on the IssueDate of the Security and the servicing fee compensationstructure for the HECM.(2)The servicing fee compensation structure for each HECMmay reflect a servicing fee paid as a flat monthly fee or asa portion of the note rate. At pooling, Issuers mustindicate which servicing fee compensation structure (flatmonthly fee or as a portion of the note rate) was selectedfor the HECM related to the Participation to be pooled.HMBS pools may contain Participations related toHECMs which use either servicing fee compensationstructure.(3)Ginnie Mae 5500.3, Rev. 1With respect to a HECM loan for which the servicingcompensation is a flat monthly fee, the Servicing FeeMargin is established by the Issuer and is a rate (i) for aParticipation backing a Security issued prior to July 1,2011, not less than 0.06% (6 bps) nor more than 0.75%(75 bps), and (ii) for a Participation backing a Securityissued on or after July 1, 2011, not less than 0.36% (36bps) nor more than 1.50% (150 bps). With respect to aHECM loan for which the servicing compensation isbased on a portion of the note rate, the Servicing FeeMargin is established by the Issuer and is a rate (i) for aParticipation backing a Security issued prior to July 1,2011, not less than 0.25% (25 bps) nor more than 0.75%(75 bps), and (ii) for a Participation backing a Securityissued on or after July 1, 2011, not less than 0.36% (3635-8Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)bps) nor more than 1.50% (150 bps). The Servicing FeeMargin established by the Issuer for a Participation maynot change after issuance of the related pool.Participations related to the same HECM may each havedifferent Servicing Fee Margins.35-6: MORTGAGEELIGIBILITYREQUIREMENTSEach HMBS security issuance must be backed by a pool ofParticipations, each of which must comply with the followingrequirements. The requirements described in this sectionreplace those requirements found in Section 9-2.(A) InsuranceThe HECM loan related to each Participation must be, and mustremain, insured under Section 255 of the National Housing Act,and must at all times comply with the requirements for obtainingand maintaining such insurance.(B) Security for LoanThe HECM loan related to each Participation must be securedby one of the following four housing classifications, and in eachinstance, the Mortgagor(s) must occupy the dwelling as theirprincipal residence: (1) a 1- to 4- family residence, (2) acondominium unit designed for one-family occupancy, (3) amanufactured home that meets the requirements set forth in theFHA Handbooks, including that it is classified and taxed as realestate or (4) a single family residence located in a planned unitdevelopment (PUD).(C) HECM Loans at 98% ofMaximum Claim AmountAn Issuer may pool a Participation, provided that as of the dateof pooling, the outstanding principal balance of the HECM loanrelated to any Participations, plus any borrower-requesteddraws under such HECM loan, must be and must remain, lessthan 98% of the Maximum Claim Amount of the HECM loan.HECM loans are ineligible for pooling in the Ginnie Mae TLIprogram.(D) Assignment OptionGinnie Mae will only permit the pooling of Participation interestsin HECM loans originated under the assignment option.Participation interests in HECM loans with the shared premiumoption, as described in the FHA Handbooks, are ineligible forHMBS pooling.(E) Payment PlanFor an HMBS security backed by a pool of Participations relatedto adjustable rate HECM loans, the HECM loan related to eachParticipation may allow the use of any of the payment planoptions available to mortgagors and described in the FHAHandbooks.For an HMBS security with an issue date on or before May 1,2014, that is backed by a pool of Participations related to fixedGinnie Mae 5500.3, Rev. 135-9Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)rate HECM loans, the HECM loan related to each Participationmay allow the use of any of the payment plan options availableto mortgagors and described in the FHA Handbooks.For an HMBS security with an issue date on or after June 1,2014, that is backed by a pool of Participations related to fixedrate HECM loans, the HECM loan related to a Participationmust (1) if originated with an FHA case number assigned beforeSeptember 30, 2013, have been originated as a closed-end loan(as defined hereafter) and be fully drawn prior to the issue date,(2) if originated with an FHA case number assigned on or afterSeptember 30, 2013, have been originated with the SingleDisbursement Lump Sum payment plan, or (3) be related to aParticipation that is in a pool backing an HMBS security with anissue date on or before May 1, 2014.For an HMBS security with an issue date on or after June 1,2014, that is backed by a pool of Participations related to fixedrate HECM loans, the pool of Participations may commingleParticipations related to fixed rate HECMs that satisfy any of thepooling parameters in the preceding sentence.For the purposes of the pooling parameters, the term “closedend loan” means a loan for which the loan documents do notpermit the borrower to redraw funds to the extent that theborrower partially prepays any outstanding balance after loanclosing. For the purposes of the pooling parameters, the“closed-end” requirement does not prohibit the borrower’sprepayment of the loan.(F) Servicing FeeCompensationFHA requires that a mortgagee choose a servicing feemethodology of either a flat monthly fee, as authorized by FHA,or a servicing fee computed as a percentage of the mortgagenote interest. Ginnie Mae accommodates both servicing feecompensation structures, as described above in Section 355(E).(G) Issuer ObligationsIssuer Advances: Effective with any HMBS security issuance,an Issuer must be current with the following obligations:(1) the required payments to or on behalf of themortgagor as they relate to the HECM loan for which anyParticipations remain outstanding;(2) the payment of the MIP and any interest on MIP dueFHA on a HECM loan related to a Participation;(3) the payment of any late charges due FHA on theHECM loan related to the Participation; and(4) satisfactory compliance with any other customaryGinnie Mae 5500.3, Rev. 135-10Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)covenants that Issuers are required to perform pursuantto the HECM mortgage insurance program.(H) Failure of Borrower toMeet ObligationsA Participation is not eligible for pooling if, as of the HMBSsecurity issuance date, any of the following conditions exist withrespect to the related HECM loan:(1) a mortgagor has died and the property is not theprincipal residence of at least one surviving mortgagor,unless an Eligible Non-Borrowing Spouse satisfies theconditions for deferral as described in this section below;(2) a mortgagor has conveyed all title in the property andno other mortgagor retains title to the property;(3) a surviving mortgagor no longer occupies the propertyas their principal residence, and the property is not theprincipal residence of at least one other mortgagor;(4) for a period in excess of twelve consecutive calendarmonths, a mortgagor has failed to occupy the propertydue to physical or mental illness and the property is notthe principal residence of at least one other mortgagor; or(5) the mortgagor has not performed an obligation of themortgagor as stated in the terms of their mortgage ornote.The terms of some HECM loans provide for deferral of due andpayable status when the last surviving mortgagor dies and thereis an Eligible Non-Borrowing Spouse identified on the HECMwho satisfies the FHA qualifying attributes and FHA ongoingrequirements for deferral. If the Eligible Non-Borrowing Spouseceases to satisfy these attributes and requirements after thedeath of the last surviving mortgagor, the deferral period isterminated and no additional Participations related to the HECMmay be pooled.(I) Interest RateAny HECM loan related to a Participation may be either a fixedrate or adjustable rate mortgage.(J) Adjustable RateMortgagesFHA permits the origination of adjustable rate HECM loans.(1)Interest Rate Adjustments:The annual adjustable rate HECM loans related to a poolmay have different interest rate adjustment dates. TheParticipations that make up a pool of annual adjustablerate HECM Participations must all be related to HECMloans with an interest rate that adjusts on an annual basisGinnie Mae 5500.3, Rev. 135-11Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)and that will adjust within twelve months following themonth of pool issuance.The monthly adjustable rate HECM loans related to a poolmust have the same interest rate adjustment date – thefirst day of the month. The Participations that make up apool of monthly adjustable rate HECM Participations mustall be related to HECM loans with an interest rate thatadjusts on a monthly basis and that will adjust in themonth immediately following pool issuance.Ginnie Mae 5500.3, Rev. 1(2)Available Indices: Each HECM mortgage related to apooled Participation that backs an HMBS security mustbe set to the same index. The available indices for amonthly adjustable rate HECM are (a) the weeklyaverage yield on United States Treasury Securitiesadjusted to a constant maturity of one year (one-yearCMT), and (b) the average of the London interbankoffered rates (LIBOR) for one-month United States dollardeposits (one-month LIBOR). The available indices forone-year adjustable rate HECM are (a) one-year CMT,and (b) the average of the LIBOR for twelve-month UnitedStates dollar deposits (one-year LIBOR).(3)Calculating adjustments:(a)Each HECM loan must provide for initial andsubsequent interest rate changes to be calculatedby adding a “mortgage margin” to the publishedindex, and applying the rounding rule as describedbelow. Each HECM with an interest rate thatadjusts annually is subject to a 2% annual cap anda 5% lifetime cap. Each HECM with an interestrate that adjusts monthly is subject to a lifetimecap established by the lender at loan origination.(b)The mortgage margin is the amount, in basispoints (“bps”), to be added to the published indexin order to establish a note rate adjustment. TheFHA-approved lender establishes this mortgagemargin at loan origination. Furthermore, andconsistent with existing Ginnie Mae marginpolicies the HECM loan mortgage margin mustalways remain constant for the life of the loan. Itis not necessary that all of the HECM loansrelated to any Participations in an HMBS poolpossess the same mortgage margin.(c)The HECM loans related to any Participations35-12Date: 11/23/2015
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS –SPECIAL REQUIREMENTS (HECM / HMBS)must provide for calculation of the new interestrate by rounding the sum of the index plus themo
CHAPTER 35: HOME EQUITY CONVERSION MORTGAGE LOAN POOLS - SPECIAL REQUIREMENTS (HECM / HMBS) Ginnie Mae 5500.3, Rev. 1 35-3 Date: 11/23/2015 To request approval, the Issuer should submit a letter of interest to Ginnie Mae's Office of Issuer & Portfolio Management (see Addresses) and include applicable documents from Appendix I-1.
Part One: Heir of Ash Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26 Chapter 27 Chapter 28 Chapter 29 Chapter 30 .
TO KILL A MOCKINGBIRD. Contents Dedication Epigraph Part One Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Part Two Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18. Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26
With a home equity conversion loan the borrower does not have to make monthly payments to repay the loan. Home equity conversion loans do not have a predetermined maturity date, as do conventional loans. But it is a loan, and every loan must be repaid. Home equity conversion loans do not need to be repaid until the last surviving borrower dies.
DEDICATION PART ONE Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 PART TWO Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 .
financing for your Home Equity/Home Equity Line of Credit loan. This application will help you provide the information necessary to process your financial statement for your Home Equity/Home Equity Line of Credit loan request. If you are not able to provide all of the reques
qHome Equity Credit Line qFixed Rate Home Equity Loan qVariable Rate Home Equity Loan Date Received Log Number . 2/22 Non-Owner Occupied Fixed Rate Home Equity Loan Non-Owner Occupied Fixed Rate Home Equity Loan Fixed Rate Application 611 River Drive Elmwood Park, New Jersey 07407 1-800-363-8115 . FAX: (201) 797-5086 Loan Originator's Name
SUMMARY This study on A Home Equity Conversion Program for Hawaii's Elderly Homeowners indicates that home esuitv conversion has the potential to assist elderlv homeowners in need of additibnai income bv allowins homeowners to draw hpon their home equity while continuing to resibe in their homes
Home equity conversion plans can broadly be divided into loan plans and split equity plans. In the loan plans, the aged homeowner accumulates a debt to be paid off at some future time. In the split equity plans, the aged person sells the house and the equity is split into owner- ship rights that belong to the buyer-investor and occu- .
