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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
5/1/2023 - MPM 23-01
Selection of CME Term SOFR plus Spread Adjustment as Replacement Rate for all LIBOR Classes of Ginnie Mae Multiclass Securities Effective after June 30, 2023

In 2020, Ginnie Mae adopted recommendations of the Alternative Reference Rates Committee (ARRC) for fallback language for all LIBOR floating rate multiclass securities to address the pending cessation of LIBOR.1

The purpose of this Multiclass Participants Memorandum (MPM) is to inform interested participants in the Multiclass Securities Program that, in accordance with the previously adopted ARRC fallback language and the Adjustable Interest Rate (LIBOR) Act (LIBOR Act) passed by Congress in March 2022 (together with the regulations of the Federal Reserve Board of Governors promulgated thereunder), Ginnie Mae has selected CME Term SOFR as the reference rate for all LIBOR Classes outstanding after June 30, 2023.

All tenors of LIBOR for all LIBOR Classes will be replaced with the corresponding tenor of CME Term SOFR for calculations of the interest amount payable for all interest periods with determination dates occurring after June 30, 2023. The replacement rate and the calculation of the interest amount payable on such LIBOR Classes, for interest periods with determination dates occurring after June 30, 2023, will include the applicable tenor spread adjustment of 0.11448% per annum, 0.26161% per annum or 0.71513% per annum in the case of LIBOR Classes that reference one-month LIBOR, three-month LIBOR or twelve-month LIBOR, respectively, as specified in the LIBOR Act.

Any minimum or maximum interest rate applicable to any LIBOR Class will remain the same. Corresponding changes to any related pooling REMIC subaccounts will also be made.

For all capitalized but not defined terms used herein, refer to Ginnie Mae’s Multiclass Securities Guide currently in effect, as amended by previous Multiclass Participants Memoranda.

This MPM shall serve as notice to all applicable trustees of Ginnie Mae’s selection.

The Ginnie Mae Multiclass Securities 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.

_______________________________________




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.


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