Ginnie to Securitize VA Jumbos

Ginnie Mae has announced that it will begin securitizing Department of Veterans Affairs guaranteed jumbo loans with balances above the $417,000 conforming loan limit starting Sept. 1.Currently, VA loans going into Ginnie Mae mortgage-backed securities cannot exceed the conforming loan limit. "We expect this change will expand the availability of low-cost financing and increase homeownership opportunities for America's veterans, particularly in high-cost areas, by encouraging lenders to make more VA loans," Ginnie executive vice president Michael Frenz said. Approximately 30% of the loans that back Ginnie MBS are VA-guaranteed loans. Ginnie Mae, a government-owned corporation within the Department of Housing and Urban Development, can be found online at http://www.ginniemae.gov.