Base Offering Circular Multifamily
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Mortgage Loans. In addition, effective with multifamily pools submitted for processing
beginning March 1, 1997, Ginnie Mae adopted a program (the Small Loan Program) that
permitted the issuance of Ginnie Mae Project Loan Certificates based on and backed by from one
or more small, multifamily Mortgage Loans, each with a maximum original principal balance of
$1,000,000 and a maximum original term to maturity of 35 years, and all with the same
Mortgage Rate.
Each Ginnie Mae Project Loan Certificate will provide for the payment to the registered
holder of that Ginnie Mae Project Loan Certificate of monthly payments of principal and interest
equal to the aggregate amount of the scheduled monthly principal and interest payments on the
Mortgage Loans underlying that Ginnie Mae Project Loan Certificate, less applicable servicing
and guaranty fees. In addition, such payments will include any prepayments and other
unscheduled recoveries of principal of, and any Prepayment Penalties on, an underlying
Mortgage Loan to the extent received by the Ginnie Mae Issuer during the month preceding the
month of the payment.
The related Offering Circular Supplement will describe certain characteristics of the
Ginnie Mae Project Loan Certificates and the underlying Mortgage Loans.
FHA Insurance Programs
The FHA is an organizational unit within the U.S. Department of Housing and Urban
Development. FHA was established to encourage improvement in housing standards and
conditions, to provide an adequate home financing system by insuring housing mortgages and
credit and to exert a stabilizing influence on the mortgage market.
FHA multifamily insurance programs generally are designed to assist private and public
mortgagors in obtaining insured financing for the construction, purchase or rehabilitation of
multifamily housing pursuant to the Housing Act or, with respect to a risk sharing pilot program,
the Housing and Community Development Act of 1992, as amended. Mortgage Loans are
provided by FHA-approved institutions, which include mortgage banks, commercial banks,
savings and loan associations, trust companies, insurance companies, pension funds, state and
local housing finance agencies and certain other approved entities.
Mortgage Loans insured under the programs described in the related Offering Circular
Supplement have such maturities and amortization features as the FHA may approve. Generally
the minimum mortgage loan term is at least ten years, and the maximum mortgage loan term
does not exceed the lesser of 40 years and 75% of the estimated remaining economic life of the
improvements on the Mortgaged Property.
Tenant eligibility for FHA-insured projects generally is not restricted by income, except
for projects as to which rental subsidies are made available with respect to some of or all the
units therein or to specified tenants.
The principal characteristics of the Mortgage Loans underlying the Ginnie Mae
Multifamily Certificates in a particular Trust, and the FHA Programs under which each
Mortgage Loan is insured, will be described in the related Offering Circular Supplement.