Ginnie Mae MBS Guide (5500.3, Rev. 1) Chapter 32 — Construction Loan Pools — Special Requirements
Ginnie Mae MBS Guide Chapter 32 (Construction Loan Pools — Special Requirements). New-source fetch + gap-fill (verbatim).
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Verbatim provisions from Ginnie Mae MBS Guide (5500.3, Rev. 1) Chapter 32 — Construction Loan Pools — Special Requirements — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 This chapter describes special requirements that apply to a pool consisting of a single loan for the construction of multifamily housing. The requirements stated in this chapter modify those set forth in previous chapters for applying for and maintaining issuer status, obtaining commitment authority and pool numbers, submitting pool issuance documents, delivering securities, and administering pools. The pool suffix is “CL” or “CS.” The construction loan pool designations have the following meanings: (1) “CL” identifies a pool consisting of a single construction loan; the interest rate payable on the securities backed by a CL pool will also be the interest rate payable, upon conversion of the construction loan securities, on the resulting project loan securities. (2) “CS” identifies a pool consisting of a single construction loan; the interest rate payable on the securities backed by a CS pool will differ from the interest rate payable, upon conversion of the construction loan securities, on the resulting project loan securities. Construction loan pools can be formed only under the Ginnie Mae I MBS Program.
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 To be eligible to issue construction loan securities, an applicant must satisfy the eligibility requirements set forth in MBS Guide, Ch. 2 and 3, including the net worth requirements applicable to issuers of construction loan securities. (Please See MBS Guide Chapter 2, Part 9 and Chapter 3, Part 8)
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 In addition to the risks and liabilities described in MBS Guide, Ch. 5, a construction loan pool issuer incurs the following liability: if the securities mature, the issuer must retire the securities at par, in cash, using its own funds. (Please See MBS Guide Chapter 32, Part 10, § I and J)
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 These fees are the same as those for project loan securities. (Please See MBS Guide Chapter 31, Part 3)
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
COMMITMENT AUTHORITY TO GUARANTEE SECURITIES To participate in the program, issuers must request commitment authority and pool numbers as described in MBS Guide, Ch. 8. All multiline commitment authority will expire the last day of the month that is 24 months from the date of approval of the commitment authority. Multiline commitment authority cannot be converted to single-line commitment authority.
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 The procedure for applying for multiline commitment authority or pool numbers is described in MBS Guide, Ch. 8, Part 3. Section B. Commitment
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 The commitment fee is described in MBS Guide, Ch. 6, Part 2, § B. Section C. Pool Numbers
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 Consecutive pool numbers must be reserved for an issue of construction loan securities and the related project loan securities. The lower pool number is to be used for the construction loan securities.
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
MORTGAGE ELIGIBILITY AND POOL REQUIREMENTS A construction loan pool consists of one mortgage representing a single construction loan. The mortgage must satisfy the following requirements: Section A. FHA Insurance
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 The mortgage must be insured by FHA under the National Housing Act and the appropriate implementing regulations and must be eligible for pooling under both the construction loan and the project loan MBS programs. Section B. Minimum Mortgage Amount
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 The mortgage amount, after all advances, must total at least $250,000. Section C. Initial Endorsement
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 The mortgage note must have been initially endorsed by FHA for insurance of advances.
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
: 2015-05-01 Prior to each issuance of securities, the issuer takes the following steps with respect to FHA- insured advances: (1) makes a request to FHA for the insurance of advances; (2) makes timely disbursement to all payees named in form HUD 92403; and (3) submits documents to the document custodian for its certification and to PPA for the issuance of securities, as described in MBS Guide, Ch. 32, Part 8, § B and Ch. 32, Part 9, § B, respectively.
Ginnie Mae MBS Guide Chapter 32 — Construction Loan Pools — Special Requirements
REQUIRED DOCUMENTS FOR CERTIFICATION BY DOCUMENT CUSTODIAN After initial endorsement by FHA, the documents listed below must be delivered to the document custodian, which certifies to their receipt on the back of the Schedule of Pooled Mortgages, form HUD 11706 (Appendix III-7). Section A. Basic Pool Documents