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Platinum Securities​​

http://www.ginniemae.gov/products_programs/programs/PublishingImages/total_platinum_volume2013.pngA Ginnie Mae Platinum security is formed by combining Ginnie Mae MBS pools that have uniform coupons and original terms to maturity into a single certificate.

Ginnie Mae Platinum Securities provide MBS investors with greater market and operating efficiencies. Investors owning smaller pools of Ginnie Mae MBS can combine new or existing MBS into larger Ginnie Mae Platinum pools. A Ginnie Mae Platinum security may be used in structured financings, repurchase transactions, and general trading.

  • Ginnie Mae Platinum securities increase marketability and liquidity for relatively illiquid MBS pools, which, when combined, still meet PSA "good delivery" guidelines.

  • Ginnie Mae Platinum pool processing costs for investors, for monthly principal and interest payments, are lower due to the fact that multiple MBS pools are combined into one larger pool.

  • Prepayment variation for Ginnie Mae Platinum securities may be less than the MBS due to the diversification of the underlying mortgages.

Ginnie Mae Platinum Securities are issued under the Ginnie Mae Multiclass Securities Program, providing an important adjunct to Ginnie Mae's mortgage-backed securities program. Ginnie Mae requires that the pool of Ginnie Mae MBS underlying a Ginnie Mae Platinum pool consists entirely of Ginnie Mae I MBS or entirely of fixed-rate Ginnie Mae II MBS. In both cases, the securities must have the same pool type, coupon rate and delivery eligibility. Both 30-year and 15-year Ginnie Mae MBS Certificates are eligible for Ginnie Mae Platinum pools. Ginnie Mae Platinum pools can be created from seasoned or current MBS production; depositors can contribute entire or partial pools of Ginnie Mae MBS certificates.

Ginnie Mae guarantees the timely payment of principal and interest on each Ginnie Mae Platinum pool. This guaranty is backed by the full faith and credit of the United States government. In exchange for Ginnie Mae's guaranty of the Ginnie Mae Platinum pool, a guaranty fee is charged. Details of the fee may be obtained by calling Ginnie Mae's Office of Capital Markets at (202) 401-8970.

Ginnie Mae Platinums Trade Good Delivery for TBA Transactions

Subject to relevant Securities Industry and Financial Markets Association (SIFMA) guidelines, 30-year Ginnie Mae Platinum securities are good delivery against 30-year Ginnie Mae TBA (To Be Announced) transactions, even if the underlying Ginnie Mae MBS have a current remaining term to maturity of less than 28 years. Similarly, 15-year Ginnie Mae Platinum securities are good delivery against 15-year Ginnie Mae TBA transactions. Ginnie Mae Platinum securities trade good delivery against TBA transactions because they are identical to Ginnie Mae MBS for administrative and operational purposes.

Last Modified: 10/24/2014 8:58 AM