05_MH_HR-1_Report_Requirement_2007_ATTACHMENT___E.doc

01/01/2007

Ginnie Mae Manufactured Housing Reporting Instructions -

Requirements for Accounting Report Forms

Purpose of the MHPR-1 Report: This report is used to request monies from Ginnie Mae to cover anticipated shortfalls in monthly principal and interest payments due to security holders of Ginnie Mae I MBS portfolios. The MHPR-1 is a required form. Even if there is no need for Ginnie Mae to advance funds, the MHPR-1 still provides Ginnie Mae monthly accounting data. The original report must be in Ginnie Mae’s possession no later than the 10th day of the reporting month.

Definition of Terms:

1.

Amount of Principal and Interest on Deposit at the End of the Reporting Month - Enter the balance of principal and interest on deposit at the end of the reporting month in the defaulted issuer’s P&I custodial bank account.

2. Total Amount Collected Between the 1st and the 9th day of the Current Month - enter the total amount of principal and interest payments collected by the subservicer on Ginnie Mae MBS servicing portfolio from the 1st day of the month to the afternoon of the 9th day of the month, minus out the gross service fees wired to Ginnie Mae on the 3rd business day of the current month.

3.

Estimated Collections of the 10th Day through the 15th Day of the Current Month - enter the estimated principal and interest payments to be collected by the subservicer on Ginnie Mae’s MBS servicing portfolio between the 10th and 15th day of the reporting month. Ginnie Mae suggests that the subservicer use the following estimation methodology:

1.

Prepare a worksheet outlining daily collections for the period 10th to 15th for the past six months.

2.

Calculate average daily collections by totaling collections for a five-day period over the past six months and dividing by the number of days. Note: The divisor, the number of days over the past six months, will change each reporting period as weekends and holidays often fall between the 10th and 15th of each month.

3.

Multiply the number of day’s collections will be deposited to issuer’s P&I account times the average daily collection.

4.

From the amount calculated in step 3, subtract $10,000 and record the difference as the estimated collections for the period 10th to the 15th.

The subservicer is encouraged to use the above estimation process; however, the subservicer may deviate if its estimation process is more precise. For example, some subservicer’s loan servicing system provides information on deposits in transit as of the 10th day of the reporting period, thus reducing the period of days necessary to estimate collections.

4. Self explanatory

5. Self explanatory

6. Purchase of Manufactured Housing Holding Loans from MBS Servicing Pools - enter the (outstanding principal due the security holder plus one month interest) needed to pass-through to the security holders on the 15th day of the current month for Ginnie Mae’s purchase of manufactured housing holding loans. (Delinquent and bankruptcy loans will transfer to another category at a later date.)

7.

Purchase of Manufactured Housing Whole Loans from MBS Servicing Pools - enter the (outstanding principal due the security holder plus one month interest) needed to pass-through to the security holders on the 15th day of the current month for Ginnie Mae’s purchase of manufactured housing whole loans.

8.

Purchase of Manufactured Housing Acquired Properties from MBS Servicing Pools - enter the (outstanding principal due the security holder plus one month interest) needed to pass-through to the security holders on the 15th day of the current month for Ginnie Mae’s purchase of manufactured housing real estate owned (REO) loans.

9. Amount to Buydown VA Loans - enter the total amount of principal due security holders during the reporting month on VA loans going into foreclosure that are in Ginnie Mae I MBS servicing pools to avoid the VA no bid policy.

10. Soldiers and Sailors Civil Relief Act (SSCRA)- enter the interest shortfall amount needed to make the SSCRA loans whole. The SSCRA permits a maximum interest rate of six percent on the mortgage debt incurred before entry into military service. The issuer must lower the interest rate to six percent during the borrower’s active duty. Ginnie Mae will reimburse the interest shortfall payment for defaulted portfolios.

11. Amount Due Investors on the 15th of the Month - enter the total amount of principal and interest due security holders during the current month (add lines 5 through 10).

12. Self explanatory

13. Self explanatory

14. Service Fee Collected - enter the gross servicing fee spread between the interest rate on the mortgages and interest rate on the securities. Wire the gross amount of service fees collected along with claim proceeds, sales proceeds and Ginnie Mae whole loan collections to Ginnie Mae on the third business day of the month following receipt in one wire. Be sure to fax the MHPR-7, Detailed Wire Support Form to Ginnie Mae.

Purpose of the MHPR-2 Report: This report is used to request monies from Ginnie Mae to cover anticipated shortfalls in monthly principal and interest payments due to security holders of Ginnie Mae II MBS portfolios. The MHPR-2 is a required form. Even if there is no need for Ginnie Mae to advance funds, the MHPR-2 still provides Ginnie Mae monthly accounting data. The original report must be in Ginnie Mae’s possession no later than the 10th day of the reporting month.

Definition of Terms:

1.

Amount of Principal and Interest on Deposit at the End of the Reporting Month - Enter the balance of principal and interest on deposit at the end of the reporting month in the defaulted issuer’s custodial P&I custodial bank account for Ginnie Mae II securities.

2.

Total amount collected between the 1st and the 9th day of the current month - enter the total amount of principal and interest payments collected by the subservicer on Ginnie Mae MBS servicing portfolio from the 1st day of the month to the afternoon of the 9th day of the month, minus out the gross service fees wired to Ginnie Mae on the 3rd business day of the current month.

3.

Estimated Collections of the 10th Day through the 15th Day of the Current Month - enter the estimated principal and interest payments to be collected by the subservicer on Ginnie Mae’s MBS servicing portfolio between the 10th and 15th day of the reporting month. Ginnie Mae suggests that the subservicer use the following estimation methodology:

1.

Prepare a worksheet outlining daily collections for the period 10th to 15th for the past six months.

2.

Calculate average daily collections by totaling collections for a five-day period over the past six months and dividing by the number of days. Note: The divisor, the number of days over the past six months, will change each reporting period as weekends and holidays often fall between the 10th and 15th of each month.

3.

Multiply the number of day’s collections will be deposited to issuer’s P&I account times the average daily collection.

4.

From the amount calculated in step 3, subtract $10,000 and record the difference as the estimated collections for the period 10th to the 15th.

The subservicer is encouraged to use the above estimation process; however, the subservicer may deviate if its estimation process is more precise. For example, some subservicers’ loan servicing system provides information on deposits in transit as of the 10th day of the reporting period, thus reducing the period of days necessary to estimate collections.

4. Self explanatory

5. Self explanatory

6. Purchase of Manufactured Housing Holding Loans from MBS Servicing Pools - enter the (outstanding principal due the security holder plus one month interest) needed to pass-through to the security holders on the 15th day of the current month for Ginnie Mae’s purchase of manufactured housing holding loans. (Delinquent and bankruptcy loans will transfer to another category at a later date).

7. Purchase of Manufactured Housing Whole Loans from MBS Servicing Pools - enter the (outstanding principal due the security holder plus one month interest) needed to pass-through to the security holders on the 15th day of the current month for Ginnie Mae’s purchase of manufactured housing whole loans.

8. Purchase of Manufactured Housing Acquired Properties from MBS Servicing Pools - enter the (outstanding principal due the security holder plus one month interest) needed to pass-through to the security holders on the 15th day of the current month for Ginnie Mae’s purchase of manufactured housing real estate owned (REO) loans.

9. Amount to Buydown VA Loans – enter the total amount of principal due security holders during the reporting month on VA loans going into foreclosure that are in Ginnie Mae II MBS servicing pools to avoid the VA no bid policy.

10. Soldiers and Sailors Civil Relief Act (SSCRA) - enter the interest shortfall amount needed to make the SSCRA loans whole. The SSCRA permits a maximum interest rate of six percent on the mortgage debt incurred before entry into military service. The issuers must lower the interest rate to six percent during the borrower’s active duty. Ginnie Mae will reimburse the interest shortfall payment for defaulted portfolios.

11. Amount Due Investors on the 20th of the Month - enter the total amount of principal and interest due security holders during the current month (add lines 5 through 10).

12. Self explanatory

13. Self explanatory

Service Fee Collected - enter the gross servicing fee spread between the interest rate on the mortgages and interest rate on the securities. Wire the gross amount of service fees collected along with claim proceeds, sales proceeds and Ginnie Mae whole loan collections to Ginnie Mae on the third business day of the month following receipt in one wire. Be sure to fax the MHPR-7, Detailed Wire Support Form to Ginnie Mae.

14. Purpose of the MHPR-3 Report: This report is to provide summary information by defaulted issuer to Ginnie Mae on the activities related to the collection of escrow funds and the disbursement of those funds for the payment of taxes and insurance on Ginnie Mae MBS pooled loans. The report will also reflect any reimbursement requests by the subservicer for escrow (number 3 below) or the repayment of escrow monies to Ginnie Mae (number 5 below) during the reporting month.

Preparation Instructions:

1. Escrow Beginning Balance - enter the bank statement balance of T&I custodial account at the beginning of the reporting period to pay taxes and insurance due on Ginnie Mae MBS pooled loans. This line should match prior month MHPR-3, line 6 ending balance.

2.

Collections - enter the amount of escrow monies collected during the reporting month for the payment of taxes and insurance.

3.

Funding by Ginnie Mae - enter the funds provided by Ginnie Mae to make up shortfalls in the escrow accounts needed to pay taxes and insurance on Ginnie Mae MBS pooled loans.

This amount should match the MHPR-5, column 8, Disbursements by Ginnie Mae.

4.

Disbursements - enter the amount of escrow monies paid during the reporting month for the payment of taxes and insurance. This amount should match the MHPR-5, column 6, Invoice amount.

5.

Repayments to Ginnie Mae - enter the reimbursement of funds to Ginnie Mae for prior funding of shortfalls in escrow accounts needed to pay taxes and insurance on Ginnie Mae MBS pooled loans. This amount should match the MHPR-5, column 8, net repayments to Ginnie Mae.

6.

Escrow Ending Balance - enter the amount of monies on deposit in the T&I custodial bank account at the end of the reporting period to pay taxes and insurance due on Ginnie Mae MBS pooled loans.

Purpose of the MHPR-4 Report: This report is to provide summary information by defaulted issuer to Ginnie Mae on the activities related to the collection of principal and interest and the disbursement of those funds for paying security holders of Ginnie Mae I and II pooled loans. The report will also reflect any reimbursement request(s) by the subservicer for principal and interest (number 3 below) or the repayment of principal and interest to Ginnie Mae (number 5 below).

Preparation Instructions:

1.

Principal and Interest Account Beginning Balance - enter the amount of monies on deposit in the P & I custodial bank account at the beginning of the reporting period to pay security holders. This amount should match the prior month MHPR-4, line 6, ending balance.

2.

Collections - enter the amount of principal and interest collected during the reporting month to pay security holders.

3. Funding by Ginnie Mae - enter the funds provided by Ginnie Mae to make up shortfalls in principal and interest needed to pay security holders. This amount should match the

MHPR-1, line 13 and the MHPR-2, line 13.

4.

Disbursements - enter the amount of principal and interest paid out during the reporting month to pay security holders. This amount should match the MHPR-1, line 11.

5. Repayments to Ginnie Mae - All collections, minus any outstanding checks, after providing for security holder payments, are to be returned by wire using the MHPR-7 to Ginnie Mae as of the close of business on the 20th of each month.for Ginnie Mae I and the 25th of each month for Ginnie Mae II.

6.

Principal and Interest Account Ending Balance: - enter the amount of monies on deposit at the end of the reporting period to pay MBS security holders.

Purpose of MHPR-5 Report: This report will be used to support any reimbursement requests by the subservicer for escrow advances and to provide loan level accounting for Ginnie Mae’s advance receivable.

Due to the potentially large volume of advances and repayments occurring in a given month for a particular issuer, Ginnie Mae strongly suggests that the subservicer automate this report. One subservicer prepared this report utilizing the following process:

1.

At month end, the subservicer loan servicing system generated a report listing corporate advances by issuer at the loan level. The report, in ASCII format, was converted into a dBASE file.

2.

At month end, the subservicer’s loan system generated a report of repayments at the loan level by issuer. This report, in ASCII format, was converted into a dBASE file.

3.

Both dBASE files were merged into a larger common file, listing advances and repays. The file was sorted first by loan number and second by the net amount owed to Ginnie Mae. Thus, the sorted file matched prior month advances with current month repays.

4.

At a loan level, when the net of advances and repays equaled zero, the loan number (i.e. record) was removed from the common dBASE file. This file was then printed and submitted to Ginnie Mae for payment if the advances exceeded repayments.

Any system generated report must provide loan level detail indicating the issuer number, loan number, nature of the advance, the invoice amount, escrow balance at time of disbursement, the amount advanced and the net needed from Ginnie Mae. Since Ginnie Mae does not require the subservicer to submit copies of all invoices paid during the reporting month, the subservicer must maintain an audit trail for review by Ginnie Mae’s auditors. Whether the subservicer utilizes an automated or manual report, it is imperative that the subservicer maintain the invoice supporting the required advance.

Preparation Instructions:

1.

Loan Number - enter the loan number the subservicer has assigned to the mortgage.

2.

Borrower Name - enter the name of the mortgagee.

3.

Escrow Type - enter “Taxes,” “Insurance,” or “Penalty.” If a request for a penalty such as late tax payment is submitted, maintain evidence in addition to the invoice if due to prior subservicer error. If the mortgagee repays an advance, report escrow type as “Repayment.”

4.

Vendor - enter the name of the vendor performing the service.

5.

Date Incurred – record the date the expense was incurred or the period of time the service was provided.

6.

Invoice Amount - enter the amount the vendor is charging for services provided (invoice amount, not estimated amount). It is Ginnie Mae’s policy not to prepay for any services, except when it is the industry practice (such as hazard insurance) to do so. Note: An invoice amount remains on the MHPR-5 report until it is repaid. If the mortgagee repays a prior advance, show the recovery as a negative invoice. On the following month, remove the loan from the schedule of Ginnie Mae Advances.

7.

Escrow Balance - enter the amount available in the escrow account of the borrower for this expense.

8.

Advance Request/Refund - calculate the difference between invoice amount and the escrow balance (Column 6 minus Column 7). Any repayments should be recorded as a negative amount in Column 7. Compare the month end totals of Column 8 with the prior month. If the advance balance increased over the prior month, bill Ginnie Mae for the difference. If the balance fell over the prior month, return this difference to Ginnie Mae. If the subservicer utilizes an automated database, the total advance balance reported on MHPR-5 must agree to the advance balance reported on the Month End Trial Balance.

Purpose of the MHPR-6 Report: This report is to request reimbursement of extraordinary expenses made by the subservicer on Ginnie Mae’s behalf. Expenses include all extraordinary costs incurred by the subservicer for subservicing contract. Extraordinary expenses are all costs outside of the agreed-upon servicing fee. The MHPR-6 report is to be submitted to Ginnie Mae when the vendor requests reimbursement for expenses.

Definition of Terms:

1. Ginnie Mae Pool Number - Ginnie Mae pool number assigned to the loan.

2. Subservicer Loan Number - loan number assigned by the subservicer.

3. Borrower Name - person liable for paying loan.

4. Vendor Name - individual or company requesting payment for goods or services rendered.

5. Invoice Date – self-explanatory.

6. Type of Expenses - legal fees, maintenance and repairs, and other.

7. Vendor Invoice Amount - dollar amount of the invoice received from vendor.

10. Summary of Expenses by Type - provides Ginnie Mae a summary of expenses for the reporting month by expense type, refers to column 6, Type of Expenses.

11. Legal Fees - all legal fees associated with the holding loan, sale of REO’s and sale of whole loans.

12. Maintenance and Repairs - expenses incurred in preparing the property for sale or maintaining the property.

11. Other - expenses other than legal fees and maintenance and repairs.

12. Total Expenses - total of all types of expenses incurred during the reporting month.

The Figures Must Be Certified By An Officer Of The Contractor’s Firm

Purpose of the MHPR-7 Report: This report is used to wire all collections of funds to Ginnie Mae, identified by the type of collections and by defaulted issuer. This information is necessary to assist Ginnie Mae in its allocation of bank accounts and in reconciling collections with the subservicer’s monthly accounting reports. It is imperative that this form be faxed or e-mailed on the same day, if not before, a wire is sent to Ginnie Mae. The subservicer must send Ginnie Mae a hard copy of this form and any other support that is required.

Definition of Terms:

1. Defaulted Issuer Name - The name of the defaulted issuer that the collections are for.

2. Issuer Number - The assigned 4 digit issuer identification number at the time they enter the Ginnie Mae program.

3. Portfolio Number - The defaulted issuer 4 digit portfolio number assigned by Ginnie Mae at the time of default.

4. Whole Loan Collections - The monthly principal and interest payments that the mortgagees make on their loans. This amount should be reported on the MHWL-1 and the MHWL-2, Section I, line 5, Principal Repayments. The interest payments should be reported on the MHWL-1 and the MHWL-2, Section II, Breakout of Collections, line 2, Interest Payments.

5. Repayment of Advances - All collections including advances, after providing for the security holder payments must be returned to Ginnie Mae on the 20th of each month from the P&I custodial bank account. This amount should be reported on the MHPR-4 accounting reports.

6. Deficiency Judgments – These funds are from customers paying on debts that were placed on their credit reports. These loans were removed from the accounting reports at the time the judgment was placed.

7. Sales Proceeds - REO sales proceeds must be wired to Ginnie Mae with the breakout of gross sales proceeds, sales commission and net proceeds on the 3rd business day of the following month. This amount should be reported on the MHAP-1, (column 9), the MHAP-2, (line 4), and the MHAP-4, (column 7) accounting reports.

8. Service Fee Collections - The master subservicer must calculate the gross service fees for the prior month and remit the gross fees to Ginnie Mae on the 3rd business day of each month.

9. Late Fees - Collections of late fee payments for mortgage payments received after the grace period.

10. Miscellaneous Expenses Recovery - recovery of funds received from the mortgage on extraordinary expenses per contract agreement.

11. Taxes and Insurance Recovery - These funds are taxes and insurance payments that the mortgagee made to help bring their account whole, for which Ginnie Mae had made prior advances on behalf of the mortgagee. This amount should be reported on the MHPR-3, line 5, Repayments to GNMA, the MHWL-5, line 7, Repayments to GNMA, and the MHHR-5, line 5, Repayments to GNMA, accounting reports.

12. Claims Proceeds – Enter the amount of claims proceeds collected from FHA and VA

13. Total Cash - This is the total amount of the wire to Ginnie Mae and should equal the sum of columns 4 through 12.