Ginnie Mae Announces Ending of New LIBOR-Indexed Multiclass Securities

Ginnie Mae recently issued MPM 21-01 which informs participants in the Multiclass Securities Program that, effective with January 2022 transactions, Ginnie Mae will no longer permit the issuance of new Multiclass Securities that bear interest at a rate determined by reference to LIBOR.  With that said, as stated in the memorandum, Ginnie Mae will still permit the issuance of Multiclass Securities that reference LIBOR if such securities are: (1) re-securitizations of existing LIBOR Classes that (2) do not increase the total unpaid principal balance of outstanding LIBOR Classes.  Note that this restriction will not apply to Platinum Securities.