| Title: | Ginnie Mae (APM 07-11) |
| Source: | Ginnie Mae |
| Date: | 8/30/2007 |
|  Related Document(s): |
| |
| |
Summary:
Ginnie Mae is eliminating the restriction on the size of mortgage loans guaranteed by the Department of Veterans Affairs (VA)
that can be pooled in mortgage-backed securities guaranteed by Ginnie Mae. Effective with pools issued on or after September
1, 2007, Ginnie Mae will no longer limit the size of VA loans to the maximum original loan amount for conforming loans. Conforming
loans are mortgage loans that meet the purchase criteria of Fannie Mae or Freddie Mac, pursuant to Section 302(b)(2) of the
National Housing Act, and Section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act, respectively.
Ginnie Mae expects that this change will expand the availability of low-cost financing and increase homeownership opportunities
for America’s veterans and their families, particularly in high-cost areas. Ginnie Mae will continue to require that the amount
of the borrower’s cash down payment, plus the amount of the available VA guaranty, be equal to at least 25% of the lesser
of the purchase price or the Certificate of Reasonable Value.
Please select the Related Document to view APM 07-11.