U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410

FEB 26 1997

97-10

PRESIDENT, GOVERNMENT NATIONAL

MORTGAGE ASSOCIATION

MEMORANDUM FOR: All Participants in the Government National

Mortgage Association (Ginnie Mae) Mortgage-

Backed Securities Program

FROM: Kevin G. Chavers

SUBJECT: Announcement of Ginnie Mae Small Loan Program for

Multifamily Issuers

Ginnie Mae has developed a Small Loan Security Program to

securitize small FHA multifamily project loans (between five and

twenty units) developed under FHA\'s Small Loan Processing

Procedures. Multifamily issuers may begin to submit small loan

pool packages to Ginnie Mae\'s pool processing agent, The Chase

Manhattan Bank, on March 1, 1997 for processing.

Issuers of small loan pools are required to meet all the

requirements applicable to PL, PN, and LM securitization as

explained in Chapter 16 of the GNMA I Guide (5500.1 REV 6). For

pool submission and document custodian submission requirements,

refer to Chapter 16, Sections 9 and 10.

In addition to the requirements for a PL or PN pool, a small

loan pool requires the following:

\(1\) The Ginnie Mae issuer must also be approved to originate

and service loans under FRA\'s Small Loan Processing

Procedure.

\(2\) While there is a minimum of one loan per pool, there may

be multiple loans included in one pool.

\(3\) All loans in a small loan pool must have the same

interest rate.

\(4\) All loans in a small loan pool must be issued and

serviced by the same multifamily issuer.

\(5\) The maximum individual loan amount is \$1 million.

\(6\) The maximum term of the mortgage is 35 years.

\(7\) The security rate must be at least 50 basis points less

than the mortgage rate. The 50 basis points would

include the 13 basis points for the Ginnie Mae guaranty

fee, giving the issuer a minimum servicing fee of 37

basis points.

Securities backed by a small project mortgages) are

distinguishable from other Ginnie Mae project loan securities by

the suffix \"LS\" in each certificate number.

The prospectus for the small loan securities must include on

the face of the prospectus the words \"SMALL LOAN SECURITY\".

Further, an additional paragraph 3 is to be typed onto the last

page of the standard prospectus as follows: \"The pooled mortgages)

is (are) a small loan(s)\". See Appendix 25 for Form HUD 1724,

\"Prospectus \-- Project Loan Securities\".

If you have any questions regarding the Small Loan Program,

please call the Office of Multifamily Programs on (202) 708-2043.

Attachment

GNMA 5500.1 Rev. 6

CHG 51

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 51

REMOVE PAGES INSERT PAGES

Table of Contents v and vi, xi and xii same

Glossary iii and iv same

Chapter 1 1-5 and 1-6 same

Chapter 3 3-1 and 3-2 same

Chapter 16 16-1 and 16-2, 16-5 and

16-6, 16-13 and 16-14, same

16-19 thru 16-21 (and 22)

16-19 thru 16-24

Appendix 85 1 and 2

1 (and 2) FEB 1997

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410

FEB 13 1997 97-08

PRESIDENT, GOVERNMENT NATIONAL

MORTGAGE ASSOCIATION

MEMORANDUM FOR: All Participants in the Ginnie Mae Mortgage-Backed

Securities Programs

FROM: Kevin G. Chavers

SUBJECT: Amendment to All Participants Memorandum (APM) 96-11:

Payment in Accordance with Reported Remaining Principal

Balances on Mortgage-Backed Securities

All Participants Memorandum (APM) 96-11, dated June 10, 1996

(attached) stated that \"For Ginnie Mae I pools, all principal and

interest (P&I) information reported to the depository on form HUD

11714 must be reported in electronic form no later than the 8th

business day.\" Furthermore, it stated that a PC-based software

application would be made available for issuers who are unable to

provide the data in an electronic format by the Participants

Trust corporation (PTC). At this time, PTC is not able to make

the PC-based software available in time to meet the March 1997

deadline. Therefore, Ginnie Mae is amending Paragraph 1, item 3

in APM 96-11 as follows:

All issuers are strongly encouraged to submit the data

reported on form [HUD
11714](http://www.hud.gov/utilities/intercept.cfm?http://www.ginniemae.gov/guide/pdf/11714.pdf)
electronically to PTC.

The

requirement that issuers must report the data electronically

to PTC is being postponed until further notice.

The requirement that form HUD 11714 be received by PTC by

the 8th business day of the month is also postponed until

further notice. However, form HUD 11714 must be received by

PTC by the 15th of the month.

Attached are the guide change pages with the record layouts

for submitting the information in 9 track tapes or electronic

(CPU/CPU) transmissions.

Notwithstanding the amendment to APM 96-11 described above,

beginning March 1, 1997, Ginnie Mae issuers must comply with all

other reporting and paying requirements stated in APM 96-11.

Ginnie Mae will be closely monitoring issuer compliance.

Institutions that fail to comply with these requirements may be

in violation of the guaranty or contractual agreement and related

guide provisions. Therefore, Ginnie Mae strongly encourages

immediate compliance so that all parties may

2

benefit from the added confidence gained through making certain

that the information reported is consistent with the amount paid

to the Ginnie Mae security holders.

If you have any questions, please call your

SingleFamily/Manufactured Housing Account Executive on (202) 708-1535,
or

Multifamily Account Executive on (202) 708-2043.

Attachments (2)

\(1\) APM 96-11

\(2\) GNMA 5500.1 Rev. 6, Appendix 16

GNMA I

GNMA 5500.1 Rev. 6

CHG 49

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 49

REMOVE PAGES INSERT PAGES

Appendix 16 1 and 2 1 thru 4

1 (and 2)

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410

JAN 21 1997 97-06

PRESIDENT, GOVERNMENT NATIONAL

MORTGAGE ASSOCIATION

MEMORANDUM FOR: All Participants in the Government National

Mortgage Association (\"Ginnie Mae\") Mortgage-

Backed Securities Program

FROM: Kevin G. Chavers

SUBJECT: Readmittance of Ginnie Mae Defaulted Issuers and Entities

with Principals and officers of Defaulted Issuers

Mortgage-Backed Securities Program (Program) participants that

have been declared in default and have received a letter of

extinguishment from Ginnie Mae may subsequently indicate an

interest in returning to full participation. These past

participants may apply as the same or a different organization for

consideration by Ginnie Mae.

Ginnie Mae will consider applications from these past

participants. Ginnie Mae, however, reserves the right to decide,

in its sole discretion, who may participate in its programs.

Principals and employees of the defaulted issuers may appear

on applications from the defaulted issuer or a different entity.

Depending on facts and circumstances associated with the default,

applications for reentry will be considered as set out below.

Defaulted Issuers and Entities with Principals and Officers of

Defaulted Issuers (Applicants)

1\. Applicants are not permitted to reenter the Program for

a period of three years following the receipt of the

letter of extinguishment. Should applicants be debarred

or sanctioned by any government agency or by a

government-chartered entity for a period in excess of the

period that Ginnie Mae restricts reentry, they are not

permitted to reenter any Ginnie Mae program until the

removal of the other sanctions.

2\. Prior to approval to participate in the Ginnie Mae

Mortgage-Backed Securities Program, applicants are

required to reimburse Ginnie Mae for deficiencies in

Principal and Interest and Taxes and Insurance Accounts

(Custodial Accounts) at the time of extinguishment.

3\. Provisional Participation. Applicants are required to

serve a three-year period of provisional participation

(Provisional Participants). Provisional Participants

2

are required to maintain their delinquency statistics,

DQ2, DQ3, and DQP at or below minimums described in

Section 2-2 of the Ginnie Mae I Guide, or Section 3-1 of

the Ginnie Mae II Guide.

Applicants are required to maintain pool administration

procedures in accordance with policies stated in the

Ginnie Mae Guides. The measure of compliance will be.the

Issuers Administrative Profile (IAP). The IAP is a

product of completed field or desk procedural reviews.

IAP scores, at the time a review report is prepared, must

be equal to or less than the average scores of issuers in

the same class in the preceding year.

Delinquency and IAP statistics may not exceed maximum

levels set by Ginnie.Mae.

Applicants shall receive procedural reviews after six and

twelve months of program participation, and yearly for

the following two years. All reviews will use reviewers

designated by Ginnie Mae. All but the review in year

three will be performed at the issuers, expense and shall

not exceed \$12,000 for each review.

Applicants that fail to satisfy the requirements of a

Provisional Participant may, at Ginnie Mae\'s sole

discretion, be required to leave the MBS program.

Principals and Officers of Defaulted Issuers

For the purpose of administering this policy, \"Principals

and Officers\" are defined as:

All business organization owners and officers who are or

were required to submit resumes with the application to

Ginnie Mae. In addition, the issuer\'s Chairman, Chief

Executive Officer, Chief Operating Officer, President,

any senior or executive vice presidents, and vice

presidents of servicing, origination and marketing are

considered principals.

1\. Principals and officers of a defaulted issuer who were

primarily responsible for management of the defaulted

issuer are not permitted to represent a Ginnie Mae issuer

for a period of three years following the receipt of the

letter of extinguishment. Ginnie Mae considers the

Chairman, Chief Executive Officer, Chief operating

Officer, President, any senior or

3

executive vice presidents and vice presidents of

servicing, origination and marketing to be primarily

responsible for management of the defaulted issuer, as

well as other principals and officers identified by

Ginnie Mae.

Should principals or officers be debarred or sanctioned

by any government agency or by a government-chartered

entity for a period in excess of the period that Ginnie

Mae restricts reentry, they are not permitted to

represent a Ginnie Mae issuer until the removal of the

other sanctions.

2\. Principals and officers engaged in management of the

defaulted issuer, but not specifically identified in

paragraph 1, are not permitted to represent a Ginnie Mae

issuer for two years following the receipt of the letter

of extinguishment. Should principals or officers be

debarred or sanctioned by any government agency or

government-chartered entity for a period in excess of the

period that Ginnie Mae restricts reentry, they are not

permitted to represent a Ginnie Mae issuer until the

removal of the other sanctions.

3\. All other persons, not otherwise identified in paragraphs

1 and 2, above, who have been authorized on the form

[11702](http://www.hud.gov/utilities/intercept.cfm?http://www.ginniemae.gov/guide/pdf/11702.pdf)
to act for the defaulted issuer, are

not permitted

to represent a Ginnie Mae issuer for a period of one year

following the receipt of the letter of extinguishment.

Should such persons be debarred or sanctioned by any

government agency or government-chartered entity for a

period in excess of the period that Ginnie Mae restricts

reentry, they are not permitted to represent a Ginnie Mae

issuer until the removal of the other sanction.

4\. Other officers, technical, and administrative employees

who had no management responsibilities at the defaulted

issuer, are permitted to work for applicants without

being subject to the restrictions above.

Applicable pages which change Ginnie Mae Guides 5500.1 and

5500.2 on this \'subject are attached.

Attachments

GNMA I

GNMA 5500.1 Rev. 6

CHG 48

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 48

REMOVE PAGES INSERT PAGES

Table of Contents i and ii same

Chapter 6 none 6-9 thru 6-12

1 (and 2) JAN 1997

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410

JAN 15, 1997 97-04

PRESIDENT, GOVERNMENT NATIONAL

MORTGAGE ASSOCIATION

MEMORANDUM FOR: All Participants in the Government National

Mortgage Association Mortgage-Backed

Securities Program

FROM: Kevin G. Chavers

SUBJECT: Deposit/Investment of Federal Housing Administration

(\"FHA\") Escrows Other Than Those Established for

Principal, Interest, Taxes and Insurance

The Government National Mortgage Association (\"Ginnie Mae\")

herein provides guidance and clarification for all participants

in the Ginnie Mae Mortgage-Backed Securities Multifamily Program

concerning the proper establishment and maintenance of FHA-required

escrow accounts when the loan is pooled in a Ginnie Mae

Mortgage-Backed Security.

Mortgagees of loans pooled in Ginnie Mae Mortgage-Backed

Securities hold only nominal title to the loans. Actual title is

vested in Ginnie Mae through executed but unrecorded assignments

of the legal documents.

In order to properly reflect its actual trustee interest in

all escrows established for the loans and projects, Ginnie Mae

requires that all FHA-required escrows, established for the

benefit of a multifamily insured project securitized by Ginnie

Mae, must comply with the following.

Savings, Checking and Insured Money Market Accounts

Issuers may deposit tax and insurance escrow funds, as well

as other required FHA escrows, in interest-bearing accounts.

Such accounts must be insured by the Federal Deposit Insurance

Corporation (FDIC) or the National Credit Union Administration

(NCUA) and must be established in accordance with all

requirements of the Master Agreement For Servicer\'s Escrow

Custodial Account, Form HUD 11720. These accounts must be

consistent with the criteria in Section 11-6, Highlights of Pool

Administration Requirements, of GNMA Handbook 5500.1 Rev 6

(\"Guide\").

If the account balance exceeds \$100,000, the institution

must meet the criteria of Section 11-7, Custodial Institution

Ratings, of the Guide. Disposition of all earnings must be in

accordance with.FHA requirements regarding interest on escrows in

HUD-FHA Handbook 4530.1 REV-1. Principal and interest funds may

not be deposited in interest-bearing accounts or investments.

Certificates of Deposit

Issuers may use certificates of deposit (CD) for escrow

accounts, if permitted by FHA. The CD must be issued by an

institution insured by the FDIC or NCUA. If the CD exceeds

\$100,000, the institution must meet the rating requirements of

Section 11-7, Custodial Institution Ratings, of the Guide. The

CD must be held in trust for the project, with the trustee being

the Issuer and Ginnie Mae. The trustee-name styling of the CD

shall be, \"(Name of Issuer) and/or Ginnie Mae, as their interests

may appear\". Disposition of earnings must be in accordance with

FHA requirements regarding interest on escrows in HUD-FHA

Handbook 4530.1 REV-1.

U.S. Treasury Bills, Notes, Bonds and Other Obligations of the

U.S. Government

Issuers may use Direct Obligations of the Federal Government

backed by the,full faith and credit of the United States and

Obligations of Federal Government Agencies as escrow deposits.

These include U.S. Treasury Bills, Notes and Bonds and Ginnie Mae

Mortgage-Backed Securities, Ginnie Mae Participation Bonds, and

Farm Credit Administration issues, as permitted by FHA. The

assets must be held in trust for the project, with the trustee

being the Issuer and Ginnie Mae. The trustee-name styling of the

asset shall be, \"(Name of Issuer) and/or Ginnie Mae, as their

interests may appear\". Disposition of earnings must be in

accordance with FHA requirements regarding interest on escrows in

HUD-FHA Handbook 4530.1 REV-1.

Letters of Credit

All multifamily project escrows established by an

Irrevocable, Unconditional Letter Of Credit, as permitted by FHA,

must meet the following criteria. The format of the letter of

credit must follow that in Appendix 56(C) of the Guide, and the

issuer shall be named as beneficiary. The issuer must execute,

in blank, a Transfer of Letter of Credit using the format at

Appendix 56(D) of the Guide, the original of which must be filed

with the document custodian. Any substitute letter of credit or

extension which changes the letter of credit number or any terms

or conditions of the letter of credit will require a new

execution in blank and filing of a Transfer of Letter of Credit

form. The issuing bank must meet the rating published in Section

11-7, Custodial Institution Ratings, of the Guide.

Other Acceptable Assets

Issuers may use AAA-rated Ginnie Mae-collateralized tax-exempt

bonds and AAA-rated prerefunded bonds, as permitted by FHA

as escrow deposits. Prerefunded bonds are bonds that originally

may have been issued as general obligation or revenue bonds but

are now secured, until the call date or maturity, by an \"escrow

fund\" consisting entirely of direct U.S. Government obligations

that are sufficient for paying the bondholders. These assets

must be held in trust for the project, with the trustee being the

Issuer and Ginnie Mae. The trustee-name styling of the asset

shall be, \"(Name of Issuer) and/or Ginnie Mae, as their interests

may appear\". Disposition of earnings must be in accordance with

FHA requirements regarding interest on escrows in HUD-FHA

Handbook 4530.1 REV-1.

For deposit accounts, these changes will be mandatory as of

June 1, 1997. For all other forms of collateral, these changes

are effective at the first opportunity to restyle the account

name (i.e., extension of LOC, sale or reinvestment of U.S.

Treasury Bills, etc.).

Attachments

GNMA I

GNMA 5500.1 Rev. 6

CHG 47

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 47

REMOVE PAGES INSERT PAGES

Chapter 16 16-9 thru 16-22 16-9 thru 16-21

(and 22)

Appendix 56 1 thru 3 (and 4)

and 9 (and 10) same

1 (and 2) JAN 1997

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410

97-03

January 14, 1997

PRESIDENT, GOVERNMENT NATIONAL

MORTGAGE ASSOCIATION

MEMORANDUM FOR: All Participants in the Government National

Mortgage Association (\"Ginnie Mae\") Mortgage-Backed

Securities Program

FROM: Kevin G. Chavers

SUBJECT: Pooling 203(k) Loans

Ginnie Mae is clarifying the requirements for pooling FHA

insured 203(k) loans in Ginnie Mae I pools where the borrower is a

nonprofit agency (as defined in HUD Handbook 4155.1, Rev.4, Change

1, and as further qualified by [Mortgagee Letter
96-52](http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/96-52ml.txt),
dated

September 19, 1996).

In addition to individual owner-occupied 203(k) loans, all

203(k) loans where the borrower is an eligible nonprofit agency and

the loans are part of the nonprofit\'s affordable housing program

approved by FHA pursuant to Mortgagee Letter 96-52 , are eligible

for Ginnie Mae I pools. The issuer pooling such loans must

maintain, in the pool file with the document custodian, a copy of

the FHA affordable housing program approval letter covering the

loans.

This change is effective for all 203(k) loans closed that are

part of a nonprofit\'s FHA-approved affordable housing program.

The applicable Guide changes to Chapters 3 and 8 of GNMA

Handbook 5500.1 Rev. 6 and Chapter 7 of GNMA Handbook 5500.2 are

attached.

Attachment

GNMA I

GNMA 5500.1 Rev. 6

CHG 46

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 46

REMOVE PAGES INSERT PAGES

Chapter 3 3-3 thru 3-8 same

Chapter 8 8-3 and 8-4 same

1 (and 2) JAN 1997

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410

DECEMBER 12, 1996

96-32

PRESIDENT, GOVERNMENT NATIONAL

MORTGAGE ASSOCIATION

MEMORANDUM FOR: All Participants in the Ginnie Mae Mortgage-

Backed Securities Program

FROM: Kevin G. Chavers

SUBJECT: GNMA I Guide Change - \"Revision to Parameters of Multifamily

Delinquency Threshold\"

This memorandum transmits the Guide changes for a previously announced

change to the GNMA I Mortgage-Backed Securities program. The standard
for

determining the 7.5 percent delinquency threshold for multifamily

issuers under the Basic Eligibility Requirements (GNMA Guide 5500.1 Rev
6,

Section 22h(5)) was announced in All

Participants Memorandum 95-22. The new Guide pages are attached.

Attachment

GNMA I

GNMA 5500.1 Rev. 6

CHG 44

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 44

REMOVE PAGES INSERT PAGES

Chapter 2 2-11 thru 2-14 same

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410

AMENDED

96-23

OCTOBER 9, 1996

PRESIDENT, GOVERNMENT NATIONAL

MORTGAGE ASSOCIATION

MEMORANDUM FOR: All Participants in the Government National

Mortgage Association Mortgage-Backed

Securities Program

FROM: Kevin G. Chavers

SUBJECT: Application for Issuer Approval, Increase in Net Worth

Requirement, Reconfirmation of Compliance with Ginnie

Mae Program Requirements when an Issuer Undergoes a

Change in Control, and Classified Balance Sheet

Requirement

As part of our Business Process Reengineering efforts, the Government
National

Mortgage Association (Ginnie Mae) and the Federal Housing Administration
(FHA)

are pleased to announce implementation of a combined application form
for

obtaining Ginnie Mae issuer and FHA mortgagee status. The new process
will

enable institutions to submit an application for both approvals

simultaneously.

A copy of the new form is attached to this memorandum. The form is also

available on the HUD Homepage on the worldwide web (http://www.hud.gov).
To

find the form, go to the Library section of the Homepage and click on
HUD

Forms Warehouse. The Homepage contains instructions on how to download
the

form. To order any quantity of forms, lenders may call 1-800-767-7468.

This All Participants Memorandum also addresses several other changes.

Ginnie Mae is increasing the base net worth requirement for
single-family

issuers to \$250,000 (the same as FHA\'s base net worth requirement).

Additionally, Ginnie Mae is eliminating a special net worth treatment
for all

issuers with internal reserve pools. Further, Ginnie Mae would like to
remind

issuers of new responsibilities that must be completed when the issuer

undergoes a change in control, and the need to provide a classified
balance

sheet as part of their annual audit submission. The changes are
discussed in

more detail in the balance of this memorandum.

Issuer Approval:

Effective immediately, institutions seeking FHA and/or Ginnie Mae

approval are to complete the new form HUD 11701/92001. Qualified
applicants

may request one of the following three types of approval: 1) FHA
approval

only; 2) Ginnie Mae approval only; or 3) FHA and Ginnie Mae approval.

Applicants requesting both FHA and Ginnie Mae approval will be processed

simultaneously by Ginnie Mae and FHA

staffs. The applicant will receive separate notification from each
agency as

to the request for approval. Ginnie Mae will process the application

simultaneously, however as is currently the case, PHA mortgagee approval
is

a prerequisite for Ginnie Mae issuer approval.

Ginnie Mae has eliminated the requirement that institutions seeking

Ginnie Mae, single-family issuer approval be approved by the Federal
National

Mortgage Association (Fannie Mae), as a precondition to Ginnie Mae
approval.

However, FHA- approved status continues to be a prerequisite for Ginnie
Mae

approval.

Increase in Net Worth Requirement, and Indexing Net Worth to the
Consumer

Price Index:

In order to make base net worth consistent with FHA requirements, and

to ensure that issuers can fulfill their financial obligations, Ginnie
Mae is

increasing the base net worth requirement for issuers possessing
single-family

status only, to \$250,000, effective October 1, 1996. The base net worth

requirement for multifamily or manufactured housing issuers will
continue to

be \$500,000.

Ginnie Mae is also eliminating a special net worth treatment for all

issuers with internal reserve pools. Currently, the amount of internal

reserve (IR) securities that an issuer has outstanding is divided in
half

before applying the incremental net worth percentage. The lower risk
that

Ginnie Mae expected from the IR structure has not materialized.

The base net worth requirement for all issuer types will be indexed to

inflation and adjusted every five years with a one year advance notice
to

issuers. The change in price levels will be measured by the Consumer
Price

Index (CPI). The base net worth requirement may float downward subject
to a

\$250,000 or \$500,000 minimum depending upon an issuer\'s pool type
eligibility.

The adjusted base net worth will be rounded to the nearest thousand. The

reference period from which inflation will be calculated is December
1995.

The first adjustment of the base net worth requirement will be on
January 1,

2002 which will reflect the change in price level during 1996 through
2000.

Future adjustments will follow in this manner. The Ginnie Mae President
shall

have discretion to waive or lessen any increase or decrease given by the

indexing formula.

Changes in Control:

Pursuant to the recent regulatory changes, issuers are now required to

notify Ginnie Mae in advance of a change in control, i.e., stock or a
new

partner obtaining significant influence over an issuer (20 percent or
more

change in

2

stock ownership). The following documentation must be provided to Ginnie

Mae in connection with the change in control of issuers: 1) a written

certification that, after the change in control, the issuer shall
continue

to comply with all Ginnie Mae program requirements; and 2) the
submission

of business resumes for the new.owner(s) and corporate officers of the

business entity. Any changes in ownership involving a Ginnie Mae issuer

with Manufactured Housing status requires Ginnie Mae\'s prior written

approval. The affected issuer will be required to update their business

status with Ginnie Mae by completing the Ginnie Mae portion of form HUD

11701/92001.

In the event that a Ginnie Mae approved issuer is merged or

consolidated with an unapproved entity, the unapproved entity must
formally

apply to Ginnie Mae for issuer status and be approved by Ginnie Mae
prior

to the merger or consolidation taking place.

Classified Balance Sheet:

Effective with annual audits performed on or after September 30,

1996, existing Ginnie Mae issuers are required to include a classified

balance sheet and a statement of operations and cash flows, prepared in

accordance with the standards for financial audits of the U.S. General

Accounting Office\'s Government Auditing Standards, issued by the

Comptroller General of the United States. The classified balance sheet

shall show the division of total assets into current, non-current, and
the

division of total liabilities into current and long-term liabilities.

Applicable changes to the GNMA Guides 5500.1 and 5500.2 on these

subjects are attached. Also included in the Guide changes are other

matters discussed in the Federal Register, Vol. 60, No. 156, which
became

effective September 13, 1995, and Vol. 58, No. 235, published December
9,

1993\. If you have any questions on this memorandum, please contact your

Single-Family/Manufactured Housing Account Executive at (202) 708-1535
or

your Multifamily Account Executive at (202) 708-2043. FHA-specific

questions should be directed to the Office of Lender Approval and

Recertification at (202) 708-1515.

Attachments

3

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410 96-25

November 7, 1996

PRESIDENT, GOVERNMENT NATIONAL

MORTGAGE ASSOCIATION

MEMORANDUM FOR: All Participants in the Ginnie Mae Mortgage- Backed

Securities Program

FROM: Kevin G. Chavers

SUBJECT: Ginnie Mae I and Ginnie Mae II Guide Changes

This memorandum transmits Guide changes associated with

previously announced changes to Ginnie Mae\'s Mortgage-Backed

Securities Program. The policies and procedures were announced

in All Participants Memoranda 95-32 \"Master Agreements\", 95-23

\"Streamlined Certification Requirements and Revised Thresholds

for Non-compliance\", 96-14 \"Pool Issuance and Immediate

Transfer\", 96-12 \"Amendment of the Minimum Threshold Required for

Posting a Letter of Credit for Pools Past Due for Final

Certification or Recertification\", and 96-10 \"Transfer of

Mortgage Servicing Requests\" issued through June 21, 1996.

Most of the chapters are being issued in their entirety due

to the extensive changes made to HUD Handbooks 5500.1 Rev. 6 and

GNMA 5500.2., Issuers should review the entire chapters and

appendices to ensure compliance with current policies in the

Ginnie Mae Mortgage-Backed Securities Program.

Attachment

GNMA I

NOV 1996

GNMA

5500.1 Rev. 6

CHG 43

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 43

REMOVE PAGES INSERT

PAGES

Table of Contents i thru iv same

Appendices v thru ii (and vii) same

Summary of Addresses i thru iv i thru iii (and iv)

Chapter 1 1-1 thru 1-7 (and 8) 1-1 thru 1-8

Chapter 2 2-3 thru 2-8 same

2-13 thru 2-24 2-13 thru 2-27

(and 28)

Chapter 3 3-1 thru 3-4, same

3-7 and 3-8

Chapter 6 6-7 and 6-8 same

Chapter 8 8-1 thru 8-8 same

Chapter 9 9-1 thru 9-8 same

Chapter 10 10-1 thru 10-8 same

Chapter 11 11-7, 11-8, same

11-15 thru 11-18

Chapter 14 14-1, 14-2 same

Chapter 15 15-1 thru 15-10 same

Chapter 16 16-3, 16-4,

16-7 thru 16-12, same

16-15 thru 16-18

Chapter 17 17-3 and 17-4, same

17-7 thru 17-10

1

Chapter 18 18-1 thru 18-6 same

Chapter 19 19-1 thru 19-4 same

Chapter 20 20-1 thru 20-4 20-1 thru 20-3

(and 4)

Appendix 6 1 thru 7 (and 8) 1 thru 8

Appendix 7 1 thru 6 1 thru 8

Appendix 8 1 and 2 1 thru 3 (and 4)

Appendix 10 1 thru 3 (and 4) same

Appendix 18 1 thru 4 same

Appendix 21 1 thru 3 (and 4) same

Appendix 52 1 thru 4 same

Appendix 75 1 thru 3 (and 4) 1 thru 5 (and 6)

Appendix 84 Resolution of Board

of Directors and

Certificate of

Authorized

Signatures for

Immediate Pool

Transfer of Issuer

Responsibility

2

GNMA I

REVISED

GNMA 5500.1 Rev. 6

CHG 42

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 42

REMOVE PAGES INSERT PAGES

Table of Contents i, ii, ix (and x) same

Appendix 2 1 thru 4 1 thru 9 (and 10)

Chapter 2 2-5 thru 2-10, same

2-13 and 2-14

Chapter 6 6-1 thru 6-7 (and 8) same

Chapter 11 11-1 thru 11-17 (and 18) 11-1 thru 11-18

1 (and 2) Oct. 1996

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410 96-13

JUNE 17, 1996

PRESIDENT, GOVERNMENT NATIONAL

MORTGAGE ASSOCIATION

MEMORANDUM FOR: All Participants in the Ginnie Mae Mortgage-

Backed Securities Programs

FROM: Kevin G. Chavers, President, T

SUBJECT: Ginnie Mae I Guide Change - \"Change in Procedures for

Reimbursement Of Multifamily Mortgage Insurance Claim Cost\"

This memorandum transmits a change to Ginnie Mae\'s

procedures for submission of Requests for Reimbursement of

Mortgage Insurance Claim Costs (Section 16-6(a) GNMA Handbook

5500.1 Rev. 6 - March 1996).

Effective immediately, Ginnie Mae will require all issuers

to expeditiously process through to final settlement requests for

insurance benefits to FHA, inclusive of all filings for

supplemental benefits, prior to filing a claim for reimbursement

with Ginnie Mae.

Ginnie Mae will not reimburse issuers for interest

shortfalls in the form of surcharges levied by FHA, due to

untimely filing of required notices to FHA.

Attachment

GNMA I

GNMA 5500.1 Rev. 6

CHG 41

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 41

REMOVE PAGES INSERT PAGES

Chapter 16 16-5 and 16-6 Same

1 (and 2)

JUN 1996

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

WASHINGTON, D.C. 20410 96-11

JUN 10 1996

PRESIDENT, GOVERNMENT NATIONAL

MORTGAGE ASSOCIATION

MEMORANDUM FOR: All Participants in the Ginnie Mae

Mortgage-Backed Securities Program

FROM: Kevin G. Chavers, President

SUBJECT: Payment in Accordance with Reported Remaining Principal

Balances on Mortgage-Backed Securities

The Government National Mortgage Association (GNMA or Ginnie Mae)

has developed new program enhancements involving reporting remaining

principal balances (RPBS) and paying securities holders by issuers for

both GNMA I and GNMA II Mortgage-Backed Securities (MBS) programs.

After March 1, 1997, issuers must follow these program revisions:

1\. Issuers must report all corrections in RPBs reported to Ginnie

Mae\'s central paying and transfer agent (CPTA) by the 5th

business day of the month;

2\. Issuers will be required to pay securities holders principal

and interest on the RPBs reported (including corrections);

3\. For Ginnie Mae I pools, all principal and interest (P&I)

information reported to the depository on form HUD 11714 must

be reported in electronic form no later than the 8th business

day; and

4\. All P&I information reported on forms HUD 11710A and D, 11714

(for Ginnie Mae Is), the actual amount debited by the CPTA

(for Ginnie Mae IIs) and the securities holders payments must

be in agreement.

By emphasizing accurate and timely RPB reporting and accurate

securities holders payment, Ginnie Mae expects that administrative costs

will be reduced and MBS value increased for both issuers and securities

holders.

1\. Importance of Accurate and Timely Reporting of Remaining

Principal Balances

RPBs reported by issuers are used to calculate a \"factor\" for

each pool in Ginnie Mae MBS. Factors are widely used in the

industry for processing P&I payments to securities holders and

for the trading of securities. Accurate and timely RPB

reporting and accurate payments to securities holders can

result in reduced administrative costs for both issuers and

securities holders. To the extent that the trading process is

facilitated, the desirability and marketability of Ginnie Mae

MBS are increased. This can result in better pricing, and

increased value to issuers.

2

In addition, Ginnie Mae MBS are used as collateral for Ginnie

Mae guaranteed multiclass securities \-- Ginnie Mae Platinums

or REMICs (Real Estate Mortgage Investment Conduits).

Accurate and timely reporting of the RPBS by the issuer

community becomes critical as Ginnie Mae guarantees more and

more REMICs and Ginnie Mae Platinum securities. To the extent

that accurate and timely RPB reporting and accurate payments

to securities holders increase demand for Ginnie Mae MBS as

collateral for multiclass securities, issuers will benefit

from better pricing on the market.

In order to achieve these benefits, each issuer must have a

mechanism for assuring timely, 100% accurate RPB reporting on

Ginnie Mae MBS securities.

2\. Revised Procedures to Report RPBs on Ginnie Mae I and II MBS

and to Correct Reported RPBs

RPBs on Ginnie Mae I and Ginnie Mae II MBS must be reported by

close-of-business on the 2nd business day of each month.

Corrections on RPBs must be made by the 5th business day. No

corrections on RPBs will be accepted after the 5th business

day.

Issuers must pay securities holders based on the RPBs reported

including corrections). If an issuer discovers an error in

RPBs between the 6th business day and the pass-through date,

the issuer must pay based on the RPBs reported (including

corrections made on or before the 5th business day).

3\. Electronic Reporting.

Form HUD 11714, \"Issuer\'s Monthly Remittance Advice,\" for

Ginnie Mae I pools, must be submitted in electronic form if

the securities are held in book entry form at the depository,

currently Participants Trust Company (PTC), in the nominee

name \"MBSCC & Co.\" Issuers providing electronic form HUD 11714

will not be required to submit a hard copy of the form HUD

11714 to PTC.

Attached are the record layouts for those submitting the

information in 9 track tapes or electronic (CPU/CPU)

transmission (media). This layout is identical to the one

already being used, and therefore requires no change for

issuers who currently send media to PTC. For issuers that are

unable to create the details in the media specified above, PTC

will provide a PC-based software application which will enable

issuers to produce a file of data for transmission. All media

must be sent to PTC to be received by the 8th business day of

the month. Details on the mailing of these files can be

arranged by calling the Manager of P&I Operations at PTC,

Michael Scarpa at (212) 312-6606.

3

Following this conversion, a date will be set which will

require all issuers to electronically transmit this data to

PTC (eliminating tapes) by either CPU/CPU transmission or PC

modem transmission.

4\. Agreement of 11710A and D, 11714 and Cash Payments

The following must be in agreement:

\(1\) The sum of Lines A, C and D of all forms HUD 11714

prepared each month by an issuer, either electronic or

paper (for Ginnie Mae Is), or the actual principal amount

paid to the CPTA (for Ginnie Mae IIs);

\(2\) The sum of all forms HUD 11710A, Section 2, Box E, Total

Principal;

\(3\) Form HUD 11710D, Box 9, Total Principal Due Holders; and

\(4\) Actual principal payments to securities holders (for

Ginnie Mae I).

Related interest amounts must also be in agreement.

5\. Corrections

Errors discovered subsequent to the 5th business day must be

reflected in the RPB report made by the 2nd business day of the

following month. Differences in pool-to-security balances that

result from RPB reporting errors create under- or over-

collateralization of pools. Such differences in pool-to-security

balances must be corrected in the manner described in Appendix 11

of the GNMA I Mortgage-Backed Securities Guide and in Appendix 12

of the GNMA II Mortgage-Backed Securities Guide, which also require

that the cause of each such difference of \$100.00 or more be

explained in a hard copy attachment to the total amount of the

error does not exceed \$100.00, issuers may (1) recover the

erroneous principal payment to securities holders from any

unscheduled recoveries of principal as they occur in that pool, or

\(2\) reduce scheduled payments of principal for that pool by the

amount of the error in the month following the month of occurrence.

4

If the total amount of the error exceeds \$100.00, issuers must

recover the erroneous payment to securities holders from any

unscheduled recoveries of principal as they occur in that pool.

(GNMA I Mortgage-Backed Securities Guide, 5500.1, Appendix 11, page

6, A; GNMA II Mortgage-Backed Securities Guide, 5500.2, Appendix

12, page 6, A). Overpayments of interest may not be recovered from

securities holders.

6\. Penalties

Issuers MUST follow the requirements of this memorandum. Issuers

MUST timely report accurate RPBS, and report any corrections by the

5th business day. Issuers who fail to accurately and timely report

and/or fail to pay securities holders based on the RPBs reported

will be subject to a letter of reprimand for the first occurrence

in a calendar year and to other penalties for subsequent

occurrences. Because of the demands of the securities marketplace,

issuers MUST have procedures for accurate reporting of RPBs and

paying securities holders on those RPBS.

Thank you for your cooperation. Changes to the Guides are

attached. For further information on this memorandum, please call your

customer service representative.

Attachments

GNMA I

JUN 1996

GNMA 5500.1 Rev. 6

CHG 40

U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 40

REMOVE PAGES INSERT

PAGES

Chapter 11 11-5 and 11-6 Same

Chapter 13 13-7 and 13-10 Same

Appendix 11 5 and 6 Same

Appendix 14 3 and 4 Same

Appendix 16 1 1 and 2

1 (and 2) JUN 1996

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Government National Mortgage Association

96-5

Special Attention of: Transmittal for Handbook No.: 5500.1

REV-6

CHG-37

All Participants in the GNMA Issued: March 19, 1996

Mortgage-Backed Securities

Program

1\. This Guide change transmits previously announced changes to

Ginnie Mae\'s Project and Construction Loan Pool Programs.

These changes are applicable to the multifamily programs only,

and reflect policies announced in the following All

Participants Memoranda numbered 92-7, 93-1, 93-3, 93-19, 94-9,

95-6 and 95-7 issued through April 26, 1995. The affected

Guide pages, however, were never issued.

Due to the extensive changes made to chapters 16 and 17 of the

Ginnie Mae I Guide, these chapters are being issued in their

entirety. Issuers should review the entire chapters to ensure

compliance with current policies in the Project and

Construction Loan Pool Programs.

Also provided are the other affected Guide pages.

REMOVE PAGES INSERT PAGES

Table of Contents v, vi Same

xi, xii Same

Glossary xiii thru xvi i thru iv

Summary of Addresses xvii thru xix (and xx) i thru iii

(and iv)

Chapter 16 16-1 thru 16-29 (and 30) 16-1 thru

16-22

Chapter 17 17-1 thru 17-13 (and 14) 17-1 thru

17-11

(and 12)

Appendix 24 1 thru 3 (and 4) Same

7 and 10 Same

17, 18 Same

21 thru 29 (and 30) 21 thru 27

(and 28)

Appendix 25 1 thru 8 1 thru 5

(and 6)

Appendix 31 1 thru 3 (and 4) Same

17 thru 20 Same

23 thru 29 (and 30) 23 thru 27

(and 28)

2

Appendix 32 1 thru 10 1 thru 5

(and 6)

Appendix 53 1 (and 2) Same

Appendix 56 1 thru 3 (and 4) Same

7 (and 8) thru 7 (and 8)

thru

15 (and 16) 11 (and 12)

Appendix 77 7-1, 7-2 Same

8-1 thru 8-4 Same

8-9 thru 8-12 Same

MAR 1996

U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Government National Mortgage Association

95-27

Special Attention of: Issued: November 16, 1995

All Participants in the GNMA

Mortgage-Backed Securities

Program

1\. This change to Hanbook 5500.1 REV-6 is issued as part: of Ginnie
Mae\'s

effort to reduce the volume of paper reports submitted by issuers to

Ginnie Mae or its agent, and to encourage electronic submission of

monthly pool accounting data in a timely and efficient manner.

Consequently, Ginnie Mae introduces a revised form HUD 11710-B. Also,

Ginnie Mae will no longer permit, submission of Monthly Pool Accounting

reports (forms HUD 11710-A, 11710-E, and 11748-C) in hard copy format,

effective March 1, 1996. Beginning with the reporting month of February

1996, all issuers, regardless of the number of pools for which they are

responsible, must submit monthly pool accounting report data via

magnetic tape, diskette, or electronically through Ginnie Mae\'s
Bulletin

Board System (BBS). Please note, however, that issuers at all times must

be able to reproduce hard copy reports for any pool accounting reports

at Ginnie Mae\'s request. Ginnie Mae is likely to request hard copy

reports during its periodic on-site reviews of issuers.

Issuers will continue to submit two (2) hard copy forms HUD 11710-D,

Issuer\'s Monthly Summary Report, signed by an authorized officer, with

their monthly pool report submission.

Issuer\'s Monthly Summary Report, form HUD 11710-D

The revised form HUD 11710-D, included in this package, eliminates all

pool and security detail data required on the form HUD 11710-D currently

in use. The revised form requires submission of only the summary

information of all pool and security detail data. This will eliminate

most of the pages now provided to Ginnie Mae, since the detail data will

be included in the forms HUD 11710-A data transmissions.

2

Issuers are reminded that the \"certification\" on form HUD 11710-D must

be completed and signed by an authorized officer. The \"certification\"

applies to data provided to Ginnie Mae on the form HUD 11710-D, itself,

and to all HUD 11710-A, 11710-E, and 11748-C data submitted, which

supports the form HUD 11710-D information.

Issuer\'s Monthly Accounting Reports

Ginnie Mae offers two (2) additional methods for easing the transition

to the new requirements. The first method, the Issuer Information

System (ITS), is a PC-based software package that assists issuers in

preparing pool accounting data for subsequent transmission, either

electronically or by other acceptable methods. The software provides

for downloading data, performing edit checks, and providing edit reports

to ensure that data submissions are correct and complete. The second

method is the Ginnie Mae Data Exchange Bulletin Board System (BBS) The

BBS allows issuers to electronically submit their monthly pool

accounting data over regular telephone lines. This second method of

reporting permits Issuers, at their option, to replace current methods

of reporting pool data on magnetic tape or diskette that Issuers ship to

Ginnie Mae\'s contractor.

Ginnie Mae believes these two communications facilities, both available

on one program diskette at no charge, will assist issuers in the timely

completion and efficient submission of pool accounting reporting

requirements. Connection charges for the BBS are dependent upon each

user\'s regular long distance carrier rates. Issuers are encouraged to

contact Coopers & Lybrand, L.L.P. (C&L) at the number referenced below

for additional information and/or registration.

The procedures and format specifications for using either magnetic tape

or diskettes are shown in Appendix 11 of the GNMA I Mortgage-Backed

Securities Guide (HUD Handbook 5500.1 Rev. 6), and/or Appendix 12 of the

GNMA II Mortgage-Backed Securities Guide (HUD Handbook 5500.2). Record

layouts also appear in these appendices. Issuers can obtain information

regarding electronic submission through the BBS and/or using the ITS

software line during business hours at (703) 918-3594. A C&L

representative will return your call as soon as possible. General

questions regarding magnetic tape/diskette submissions can be handled by

your C&L Pool Accounting Analyst at (703) 918-3500.

3

Corrections of Monthly Accounting Reports

Issuers must submit any and all corrections to the HUD forms 11710-A,

11710-E, and 11748-C in magnetic tape, diskette, or BBS format only.

Hard copy of these reports will no longer be accepted after March 1,

1996\. Format, distribution, and specifications are identical to those

required for regular submission. Each tape or diskette must be clearly

labeled as containing corrections and must contain corrections only.

All corrected data must be submitted no later than the 15th calendar day

of the month following the original reporting month. As a reminder,

each corrected or revised submission must be accompanied by a brief

description of the changes, and two (2) newly-signed forms HUD 11710-D

in hard copy, summarizing and certifying to the accuracy of all Ginnie

Mae pools reported for the month.

All other pool accounting reports, i.e., forms HUD 11710-B, 11710-C,

11748-A, and 11748-B are to be submitted in hard copy format.

REMOVE PAGES INSERT PAGES

Chapter 11 11-3 thru 11-18 11-3 thru 17 (and 18)

Appendix 11 1, 2 Same

29, 30 Same

Appendix 14 1 thru 7 (and 8) Same

1 (and 2) NOV 1995

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Government National Mortgage Association

95-17

Special Attention of: Transmittal for Handbook No.: 5500.1 REV-6

CHG-35

All Participants in the GNMA Issued: July 10, 1995

Mortgage-Backed Securities

Program

1\. This transmits changes to the mortgage-backed securities program
with

regard to the minimum number of loans to be included in GNMA I and GNMA

II custom and multiple issuer pools. These changes are effective for

August 1995 pool issuances.

Under the GNMA I program, the minimum number of loans per pool at time

of issue is reduced from 10 to 5. This applies to GNMA I and GNMA II

custom pools under the single-family level payment (SF), graduated

payment (GP/GT), growing equity (GA/GD), manufactured home (MH), and

buydown (SD) (GNMA I only) mortgage programs. The minimum number of

loans for GNMA II Adjustable Payment (AR) custom pools remains at 5

loans.

Minimum pool sizes will remain unchanged, that is:

For GNMA I pools:

\$1,000,000 SF

\$ 500,000 GP/GT, GA/GD, SD, MH

For GNMA II custom pools:

\$1,000,000 SF

\$ 500,000 GP/GT, GA/GD, AR

\$ 350,000 MH

The Ginnie Mae I pool requirement that no one loan may represent more

than 15 percent of the unpaid principal amount of the pool, is changed

to 20 percent. This retirement is not applicable to GNMA II custom or

multiple issuer pools.

N:Distribution: W-3-1

2

Minimum pool sizes for GNMA II multiple issuer pools (all program types)

will be as follows:

Amount of Pool Minimum Number of Loans

\$250,000 to \$299,000 3

\$300,000 to \$499,000 4

\$500,000 to \$599,000 5

\$600,000 to \$749,000 6

\$750,000 to \$999,000 7

\$1,000,000 or more 8

For GNMA I and GNMA II pools to be used as collateral for state or local

housing bond financing programs, pool sizes and number of loan

requirements remain unchanged (see Section 3-3(k) of the GNMA I Guide

and Section 5-3(1) of the GNMA II Guide).

Guide changes reflecting these new policies are attached.

REMOVE PAGES INSERT PAGES

Chapter 3 3-3, 3-4 Same

3-9, 3-10 Same

Chapter 18 18-1, 18-2 Same

Chapter 19 19-1, 19-2 Same

U.S. Department of Housing and Urban Development

Government National Mortgage Association

95-16

Special Attention of: Transmittal for Handbook No.: GNMA 5500.1 REV-6

CHG-34

All Participants in the GNMA

Mortgage-Backed Securities Program Issued: July 7, 1995

1\. This memorandum transmits a change to the Government National
Mortgage

Association\'s (Ginnie Mae) policy pertaining to the approval process
for

a Lost Instrument Bond with Unlimited Liability submitted to Ginnie Mae

in substitution for a lost note. Previous policy required issuers to

submit a copy of the Lost Instrument Bond to Ginnie Mae for review and

approval. After receiving Ginnie Mae\'s written approval for the Lost.

Instrument Bond, the issuer was instructed to forward Ginnie Mae\'s

approval letter and the Lost Instrument Bond to the document custodian

for placement in the custodial loan file.

Effective immediately, Ginnie Mae is changing this procedure. Ginnie

Mae document custodians are given authority to review and approve Lost

Instrument Bonds with Unlimited Liability. The Ginnie Mae issuer must

send the bond directly to the document custodian. The document

custodian will review the bond to determine whether it is in the form

prescribed by Ginnie Mae. If it is in such form, the document custodian

will place the original bond directly in the custodial loan file.

Attached are revisions to Appendix 77 of the GNMA I Guide (GNMA 5500.1

REV-6), and Appendix 53 of the GNMA II Guide, (GNMA 5500-2), which

reflect this change.

REMOVE PAGES INSERT PAGES

Appendix 77 5-7 thru 5-18 5-7 thru 5-19 (and 20)

9-11, 9-12 Same

XIII-1 XIII-1, XIII-2

JUL 1995

U.S. Department of Housing and Urban Development

Government National Mortgage Association

Special Attention of: Transmittal Handbook No.: GNMA 5500.1 REV-6

All Participants in the GNMA Issued: May 1995

Mortgage-Backed Securities

Programs

1\. This Transmits

Handbook GNMA 5500.1 REV-6, \"Government National Mortgage Association

Mortgage-Backed Securities Guide.\"

2\. Explanation of Material

This handbook prescribes GNMA\'s requirements for participants in the
GNMA I

Mortgage-Backed Securities Program.

THIS HANDBOOK IS REPRINTED TO INCLUDE REVISIONS THROUGH CHANGE NO. 33
(ALL

PARTICIPANTS MEMORANDUM NO. 95-9) DATED MAY 5, 1995.

N:Distribution: W-3-1

U.S. Department of Housing and Urban Development

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Transmittal Handbook No. GNMA 5500.1 Rev. 6

Special Attention of:

All Participants in the GNMA Issued: May 1993

Mortgage-Backed Securities

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

1\. This Transmits

Handbook 5500.1 Rev. 6, \"Government National Mortgage Association

Mortgage-Backed Securities Guide.\"

2\. Explanation of Material

This Handbook prescribes GNMA\'s requirements for participants in the

Mortgage-Backed Securities Program.

THIS HANDBOOK IS REPRINTED TO INCLUDE REVISIONS THROUGH

CHANGE NO. 26, DATED 4/30/93.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

HUD-23 (9/81)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

GNMA 5500.1 Rev. 6

CHG

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

MORTGAGE-BACKED SECURITIES GUIDE

CHANGE 27

REMOVE PAGES INSERT PAGES

Table of Contents xi, xii Same

Appendix 81 ADD 1 thru

19 (and 20)

1 (and 2) JUL 1993

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Handbook GNMA 5500.1 REV-6

U.S. Department of Housing and Urban Development

Washington, D.C. 20410

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Program Participants

and Departmental Staff

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

April 1984 Government National

Mortgage Association

GNMA I

Mortgage-Backed

Securities Guide

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_