The purpose of this Multiclass Participants Memorandum (MPM) is to inform interested participants that, effective for August 2013 transactions, Trust Assets that are delivered to the Trustee for a transaction on the related Pool Wire Date may be subject to a repurchase agreement (a “repo”) between the Sponsor and a third party (a “repo lender,” which may include an intermediary bank acting on behalf of the repo lender).
Sponsors are reminded to communicate with their repo lenders well in advance of the Pool Wire Date to assure expeditious transfer of the Trust Assets. If the Trust Assets are subject to a repo, then Trust Counsel must prepare and distribute the Trustee’s Receipt and Safekeeping Agreement using the applicable form attached hereto (instead of the form that is included in the Multiclass Securities Guide October 1, 2011 Edition). The draft Trustee’s Receipt and Safekeeping Agreement must be circulated at least one business day prior to the applicable Pool Wire Date to the transaction parties, including Ginnie Mae, and to the repo lender, the Financial Advisor and the Legal Advisor.
In connection with closing of a transaction in which the Trust Assets are subject to a repo, the Trustee will issue the Book-Entry Securities from the Trustee Issuer Account at the applicable Book-Entry Depository to the Security Account designated by the Sponsor or its repo lender, as specified in the Issuance Statement for the Securities. Accordingly, Trust Counsel should prepare the Issuance Statement using the applicable form attached hereto (instead of the form that is included in the Multiclass Securities Guide October 1, 2011 Edition).
In addition, Certificated Securities will be authenticated by the Trustee and delivered at the closing in accordance with instructions from the Sponsor or its repo lender, as applicable. If a Certificated Security is to be issued to the repo lender, the repo lender must execute a Transfer Affidavit relating to such Certificated Security.
Interested parties are reminded that a repo lender’s interest in any Trust Assets will automatically terminate upon the settlement of the Securities and the Trust Assets will thereafter be held by the Trustee for the benefit of the related Trust.
An update to the Multiclass Securities Guide containing the attached forms and the information provided herein will be forthcoming.
Please call Ginnie Mae’s Office of Capital Markets at (202) 401-8970 with any questions or comments regarding this announcement.
- Exhibit A: Form of Trustee’s Receipt and Safekeeping Agreement for Single Family, Multifamily and HREMIC transactions
- Exhibit B: Form of Trustee’s Receipt and Safekeeping Agreement for Callable transactions
- Exhibit C: Form of Issuance Statement for Single Family, Multifamily and HREMIC transactions
- Exhibit D: Form of Issuance Statement for Callable transactions