HUD No. 05-123
| For Release
September 12, 2005
GINNIE MAE ANNOUNCES SPECIAL PROCEDURES FOR SECURITY HOLDERS IN DISASTER-AFFECTED AREAS
Washington, DC, September 12, 2005 - Today Ginnie Mae announced that it is advising issuers to make sure mail service is available before sending checks to security holders who live in areas where mail service has been suspended due to Hurricane Katrina.
Under the Ginnie Mae guarantee, issuers are normally required to make principal and interest payments to security holders on the 15th and 20th of each month. However, the lack of mail service in certain disaster areas is making it impossible for some issuers to ensure the delivery of checks to security holders.
To resolve this issue for the small number of Ginnie Mae investors who hold physical securities, beginning with checks due to security holders on September 15, 2005, Ginnie Mae is advising its issuers to verify that postal service has been restored before sending checks. 'We think it is in the best interest of all concerned to ensure that all payments are safely held until checks can be forwarded to investors with a certainty that they will be received,' explained Michael Frenz, Executive Vice President for Ginnie Mae.
To make sure investors receive security payments as quickly as possible, Ginnie Mae is advising issuers to check with the United States Postal Service on a daily basis to determine when post offices have restored service. Once issuers are certain of postal service delivery, checks should be sent immediately. The advisory only applies to investors who hold physical certificates.
Additionally, investors can expedite the process of receiving checks by contacting the appropriate Ginnie Mae issuer and providing an alternate mailing address. If the issuer of record is unknown or the investor holds a Ginnie Mae II security, contact JPMorgan Chase at 1-800-234-GNMA. For information see APM 05-18.
A list of the post office locations that have suspended mail service and are not accepting standard or periodical mail can be found at United States Postal Service National Mail Service Updates.