Sec. 403. Guarantee of multifamily securities
367 words·~2 min read·
/bill/114/hr/1491/ih/section-403·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Director shall develop, adopt, publish, and enforce standards for— the approval by the Director of multifamily guarantors to issue securities collateralized by eligible multifamily mortgage loans; and guarantee by Ginnie Mae of the timely payment of principal and interest on such securities collateralized by eligible multifamily mortgage loans and insured by Ginnie Mae. The standards required under paragraph
(1)shall include standards sufficient to ensure that— each multifamily guarantor is well-capitalized, except that such standards regarding capitalization shall take into consideration the unique characteristics of financing for mortgages for multifamily housing; guarantees provided pursuant to this section accommodate various business models for such financing, which shall include providing guarantees for entire securities and for particular trances under such securities; and credit risk-sharing levels under any such guarantees are commensurate with such levels under the Delegated Underwriting and Servicing Lender Program of the Federal National Mortgage Association and the Capital Market Execution Program Series K Structured 2Pass-Through Certificates originated and offered under the Program Plus Lender Program of the Federal Home Loan Mortgage Corporation. Ginnie Mae shall charge a guarantee fee for guarantees provided pursuant to this section and such fee shall be determined by Ginnie Mae— in the same manner and using the same procedures used pursuant to title II to determine guarantee fees for securities backed by single-family housing mortgages, with such changes as Ginnie Mae determines to be necessary to account for the differences between the single-family guarantee business and the multifamily guarantee business; and taking into account the differences between the guarantee fees structures of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. The Director shall take into account, in carrying out this section, in providing any issuing platform, and in establishing any requirements relating to the guarantee of securities collateralized by eligible multifamily mortgage loans, the particular nature and characteristics of such securities and loans, as distinguished from eligible mortgages and securities guaranteed pursuant to title II, and as may be necessary to accommodate the multifamily housing financing market. The full faith and credit of the United States is pledged to the payment of all amounts which may be required paid under any insurance provided under this section.