Ginnie to Securitize FHA High-Balance Loans

Ginnie Mae has announced that pools backed by the Federal Housing Administration's temporary high-balance loans will be ready for issuance on April 1. Ginnie Mae said it will create a new multiple-issuer security under the Ginnie Mae II mortgage-backed securities program to accommodate the loans. "We believe it's important that Ginnie Mae support the stimulus package and create a vehicle that will improve market liquidity as soon as possible," said Thomas R. Weakland, Ginnie Mae's acting vice president. "This new security will enable more borrowers to qualify for safe, affordable FHA-insured loans, which is critically important as the mortgage industry continues to navigate the ongoing market upheaval." All single-family loans higher than the FHA's current loan limit of $362,790 will be eligible for inclusion in the new pools. The agency can be found on the Web at http://www.ginniemae.gov.