Important Pool Dates
| H-15 RELEASE DATES|
||November 25 *
||November 24 *
||November 30 *
||November 28 *
Chapter 26-2 - Mortgage Eligibility, Pool, and Loan Package Requirements
After the initial fixed rate period of a hybrid ARM, or, in the case of the 1-Year ARM, after the first year, the interest rate of each mortgage in an ARM pool or loan package must be subject to an annual adjustment, based on one of two eligible index options: the one-year constant maturity treasury (CMT) index or the one-year London Interbank Offered Rate (LIBOR). The former refers to the published weekly average yield of U.S. Treasury securities, adjusted to a constant maturity of one year: CMT. This index is published in the Federal Reserve Statistical Release H.15, Selected Interest Rates, and is available on the internet at: http://www.federalreserve.gov/releases/h15/#weekly. The latter refers to the rate calculated by the British Bankers' Association for U.S. dollar deposits of a stated maturity, as published in the Money Rates section of The Wall Street Journal. The Issuer must apply the index, using the most recently published figure, in effect 30 days prior to a mortgage interest rate change. In all cases, the Issuer must use an exact day count. For example, if a mortgage interest rate change date falls on the 1st day of a month that is preceded by a 31-day month, the index determination date will be the 2nd day of the preceding month. Ginnie Mae will also periodically publish the H.15 Release date for the quarterly interest rate change dates on its website. These dates must be used when adjusting pool or loan package interest rates based on the CMT index.
H.15 is published each Monday, unless that day is a federal holiday. If a federal holiday falls on Monday, the H.15 is published on the next business day that is not a federal holiday. The release date, rather than the date on which the Issuer receives the release, is considered to be the date that the publication is available to each Issuer. If a release date and the index determination date coincide, the H.15 index value released on that date is considered to be available to an Issuer, whether or not the Issuer has actually received the H.15 data.
For example, if the day 30 days prior to an interest rate adjustment date is a Monday, the Issuer must use the index rate contained in the H.15 released on that Monday in order to adjust the interest rate on the mortgages in a pool or loan package. This is true without regard to when the Issuer actually receives the H.15 released on that Monday.
If the 30th day before an interest rate adjustment date falls on a Monday that is also a federal holiday, and the H.15 is not released until the following Tuesday, the Issuer must use the index rate contained in the H.15 that was released on the preceding Monday or the next business day if that Monday is also a federal holiday.
In all cases for loans indexed to the CMT, the applicable interest rate for the loan must conform to the interest rate contained in the H.15 release in effect on the 30th day of the lookback period.
Similarly, the 30-day lookback period shall also apply to loans tied to the LIBOR index. Issuers should apply the same methodology discussed above for the CMT index in order to determine the appropriate rate for loans tied to the LIBOR index. Issuers, however, must use the applicable one-year LIBOR index rate found in the Money Rates section of The Wall Street Journal on the first business day of each week that is also a publishing day. If the 30th day before an interest rate adjustment date falls on a Monday that is a non-publishing day, the Issuer must use the LIBOR index rate published in the Money Rates section of The Wall Street Journal on the first business day of the preceding week, which is typically a Monday or a Tuesday if Monday is a non-publishing day. If the 30th day before an interest rate adjustment date falls on a day other than Monday, the Issuer must use the LIBOR index rate published in the Money Rates section of The Wall Street Journal on the first business day of that week, which is typically a Monday or a Tuesday if Monday is a non-publishing day. Ginnie Mae will also periodically publish the applicable dates which will be used to adjust LIBOR-based pool or loan package interest rates on its website.
In most instances, the CMT index will be published on the same day that the LIBOR index is published. If the LIBOR index is published in the Money Rates Section of The Wall Street Journal on a Monday that is a federal holiday, that published index rate shall be used to adjust all pools and loan packages tied to the LIBOR, while adjustments to pools or loan packages tied to the CMT index shall be calculated using the index figure from another date determined using the procedures outlined in this section.