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Multiclass Participants Memoranda (MPMs)

All Multiclass Participants Memoranda (MPMs) can be accessed via our online library (powered by AllRegs) or downloaded in Portable Document Format (PDF) from this page. Please click herearrow to download Adobe Acrobat Reader.

Only a subset of MPMs are listed on this page. In order to access all MPMs b​ack to year 2002, please click herearrow. Please direct any questions you may have to your Ginnie Mae Account Executive in the Office of Issuer and Portfolio Management at (202) 708-1535 or to the Office of Capital Markets at (202) 401-8970.

5 most recent MPMs
9/20/2021 - MPM 21-01
Cessation of New LIBOR-Indexed Multiclass Securities

The purpose of this Multiclass Participants Memorandum (MPM) is to inform interested participants in the Multiclass Securities Program that, effective beginning with January 2022 transactions, Ginnie Mae will no longer permit the issuance of new Multiclass Securities that bear interest at a rate determined by reference to LIBOR unless such Multiclass Securities are (i) re-securitizations of existing LIBOR Classes that (ii) do not increase the total unpaid principal balance of outstanding LIBOR Classes. This restriction will not apply to Platinum Securities.

Capitalized terms used but not defined herein have the meanings in the Ginnie Mae Multiclass Securities Guide currently in effect, as amended by previous Multiclass Participants Memoranda.

Please call Ginnie Mae’s Office of Capital Markets at (202) 475-7820 with any comments or questions regarding this announcement. ​

10/7/2020 - MPM 20-03
Adoption of ARRC LIBOR Fallback Recommendations for LIBOR Classes of Ginnie Mae Multiclass Securities Issued Before March 2020

In March 2020, Ginnie Mae adopted recommendations of the Alternative Rates Reference Committee (ARRC) for fallback language for LIBOR floating rate securities issued in March 2020 or later (the “ARRC Recommendations”).1 The purpose of this Multiclass Participants Memorandum (MPM) is to inform interested participants that Ginnie Mae will adopt the same ARRC Recommendations for issuances of LIBOR floating rate securities before March 2020. Accordingly, the fallback language for all Ginnie Mae LIBOR floating rate securities will be the same, regardless when those securities were issued.

For all LIBOR floating rate securities, Ginnie Mae will determine:

  • if and when a transition event occurs with respect to LIBOR,
  • the date on which LIBOR will be replaced for LIBOR Classes, and
  • the applicable benchmark replacement for LIBOR and spread adjustment, in each case using, and subject to, the defined parameters or list of alternatives specified in the ARRC Recommendations, some of which contemplate or require action by other regulatory bodies.

In the event a benchmark replacement in the ordered list of alternatives is unavailable on a replacement date but later becomes available, Ginnie Mae may reselect the initially unavailable alternative. Ginnie Mae may also make other conforming changes without the consent of security holders or any other party.

Participants are encouraged to read the current Single Family Base Offering Circular and Multifamily Base Offering Circular, as applicable, for a detailed description of the fallback provisions adopted by Ginnie Mae. The specific terms set forth in the operative documents for any issuance, including the related trust agreement and applicable Standard Trust Provisions after giving effect to the terms of this MPM, will be controlling.

Capitalized terms used herein have the meanings in the Guide.

The Guide, including the Base Offering Circulars, can be found on the Ginnie Mae Website: https://www.ginniemae.gov/investors/multiclass_resources/Pages/multiclass-securities-guide.aspx

Please call Ginnie Mae’s Office of Capital Markets at (202) 475-7820 with any questions or comments regarding this announcement.

 

1 See ARRC Recommendations Regarding More Robust Fallback Language for New Issuances of LIBOR Floating Rate Notes, dated April 25, 2019, and ARRC Recommendations Regarding More Robust Fallback Language for New Issuances of LIBOR Securitizations, dated May 31, 2019, both available at: https://www.newyorkfed.org/arrc/fallbacks-contract-language.

6/12/2020 - MPM 20-02
SMBS Program Updates

The purpose of this Multiclass Participants Memorandum (MPM) is to inform interested participants of the following updates to the Stripped Mortgage-Backed Securities (SMBS) program, effective for June 2020 transactions:

  • All Ginnie Mae Multifamily Certificates are eligible trust assets for SMBS transactions.
  • For any SMBS Series, the Ginnie Mae Guaranty Fee payable by the Sponsor will be the sum of (i) $10,000, in the case of any Series backed by Ginnie Mae Multifamily Certificates and (ii) the greater of (y) $75,000 or (z) the Ginnie Mae Guaranty Fee Percentage of the aggregate Original Class Principal Balance of the related Securities, payable to Ginnie Mae on the Closing Date.*
  • For any SMBS Series, the Ginnie Mae Guaranty Fee Percentage will be the sum of (i) 0.075% of the first $100 million of the aggregate Class Principal Balance of the Securities as of the Closing Date and (ii) 0.025% of the remaining aggregate Class Principal Balance of the Securities as of the Closing Date.*

Capitalized terms used but not defined herein have the meanings in the Ginnie Mae Multiclass Securities Guide currently in effect, as amended by previous Multiclass Participants Memoranda. Please call Ginnie Mae’s Office of Capital Markets at (202) 475-7820 with any comments or questions regarding this announcement.

 

 

 

* Subject to change by Ginnie Mae.

3/19/2020 - MPM 20-01
Announcement of Updates to Multiclass Securities Guide and Adoption of ARRC LIBOR Fallback Recommendation for New Issuance of LIBOR Classes of Ginnie Mae Multiclass Securities

The purpose of this Multiclass Participants Memorandum (MPM) is to inform interested participants that, effective March 1, 2020, all parts of the Ginnie Mae Multiclass Securities Guide (the “Guide”), including the Single Family Base Offering Circular and Multifamily Base Offering Circular, have been updated to incorporate program enhancements implemented since the March 1, 2017, updates were last published. Those enhancements include:

  1. Ginnie Mae’s adoption of the recommendations of the Alternative Rates Reference Committee (ARRC) relating to fallback language for new issuances of LIBOR floating rate securities (as so adopted, the ARRC Recommendations). 1The ARRC is a group of private-market participants and official sector entities, including banking and financial sector regulators, convened by the Federal Reserve Board and the Federal Reserve Bank of New York to facilitate the transition from U.S. dollar LIBOR, which may cease to exist after 2021, to the ARRC’s recommended alternative, the Secured Overnight Financing Rate (SOFR). For LIBOR Classes issued after March 1, 2020, Ginnie Mae will determine:

    o if and when a transition event occurs with respect to LIBOR,
    o the date on which LIBOR will be replaced for LIBOR Classes, and
    o the applicable benchmark replacement for LIBOR and spread adjustment, in each case using, and subject to, the defined parameters or list of alternatives specified in the ARRC Recommendations, some of which contemplate or require action by other regulatory bodies. In the event a benchmark replacement in the ordered list of alternatives is unavailable on a replacement date but later becomes available, Ginnie Mae may reselect the initially unavailable alternative. Ginnie Mae may also make other conforming changes without the consent of security holders or any other party. Participants are encouraged to read the Single Family Base Offering Circular and Multifamily Base Offering Circular, as applicable, for a detailed description of the provisions adopted by Ginnie Mae. The specific terms set forth in the operative documents for any issuance, including the related trust agreement and applicable Standard Trust Provisions, will be controlling.

  2. The addition of SOFR as an available index for new issuance of floating rate Multiclass Securities and adoption of the ARRC recommended SOFR fallback provision.
  3. The removal of Cost of Funds Index (COFI) as an available index for new issuances.

Capitalized terms used herein have the meanings in the Guide.

The Guide, including the Base Offering Circulars, can be found on the Ginnie Mae Website (www.ginniemae.gov) under Investors – Multiclass Resources. Please call Ginnie Mae’s Office of Capital Markets at (202) 475-7820 with any questions or comments regarding this announcement.

________________________

​1 See ARRC Recommendations Regarding More Robust Fallback Language for New Issuances of LIBOR Floating Rate Notes, dated April 25, 2019, and ARRC Recommendations Regarding More Robust Fallback Language for New Issuances of LIBOR Securitizations, dated May 31, 2019, both available at: https://www.newyorkfed.org/arrc/fallbacks-contract-language.

5/6/2019 - MPM 19-01
Notice Regarding the Removal of the Transaction Initiation Letter and Checklist Requirement

The purpose of this Multiclass Participants Memorandum (MPM) is to inform interested participants that, effective for May 2019 transactions and for all other future transactions, Ginnie Mae will no longer require the execution or delivery of the Transaction Initiation Letter and Checklist as described under “Transaction Guidelines for the Ginnie Mae Multiclass Securities Program – General Overview – Initiating a Transaction” and “– Transaction Initiation Letter” in the Ginnie Mae Multiclass Securities Guide currently in effect, as amended by previous Multiclass Participants Memoranda (the “Guide”).

After the initial inquiry with the potential Sponsor, Ginnie Mae will email the Sponsor confirming the designation assigned to the proposed Ginnie Mae Multiclass Securities offering.

Sponsors will still be expected to provide Ginnie Mae and the Financial Advisor with (a) the proposed Securities Structure on Final Structure Date, (b) a Trust Asset List that describes the type(s) of Trust Assets to be included in the related Trust and affirmation that any Underlying Certificates or Underlying SMBS Securities, as applicable, included in the Trust will evidence, indirectly or directly, Ginnie Mae Certificates, (c) in the case of Underlying Certificates evidencing interests in Freddie Mac or Fannie Mae Certificates, a reference sheet or terms sheet (as applicable) from the related Underlying Certificate Disclosure Document and (d) any other information Ginnie Mae or the Financial Advisor may request with respect to the proposed transaction.

Capitalized terms used herein have the meanings in the Guide.

Please call Ginnie Mae’s Office of Capital Markets at (202) 475-7820 with any questions or comments regarding this announcement.


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Last Modified: 3/25/2021 4:42 PM