|HUD No. 00-126|
|Further Information:||For Release|
|In the Washington, DC area: 202/708-0685||Monday|
|Or contact your local HUD office||June 5, 2000|
GINNIE MAE ANNOUNCES PLANS TO USE FEDWIRE
WASHINGTON The Government National Mortgage Association (Ginnie Mae) has announced plans to use Fedwire for clearance, settlement and payment processing of its securities. This move is a part of a set of initiatives designed to increase the attractiveness and liquidity of Ginnie Mae securities here and abroad.
Executives of Ginnie Mae and the Federal Reserve Bank of New York (Fed) also announced plans to work closely with the government securities industry, through the Bond Market Association (BMA), to plan the move to Fedwire. The project will include the design and implementation of important functionality to automate transaction fail tracking and interim accounting and payment adjustment processes related to repurchase agreements. Ginnie Mae and the Fed will be working closely with industry participants in the design of this functionality through a task force coordinated by the BMA.
Ginnie Mae also plans to work closely with the Fed, the BMA, and all its program participants in establishing the sequence and timing of the Ginnie Mae securities conversion and test requirements to assure a smooth transition.
More detailed information on the move of Ginnie Mae securities to Fedwire will be available during the summer.
Ginnie Mae is a wholly-owned government corporation within the Department of Housing and Urban Development that supports federal housing initiatives by providing liquidity to the secondary mortgage market and by attracting capital to the residential mortgage markets.
Ginnie Mae programs help increase the supply
of affordable housing by guaranteeing securities issued by private lenders
backed by pools of residential mortgages insured by the Federal Housing
Administration (which is part of HUD), the Department of Veterans Affairs
and the Rural Housing Service.