Ginnie Mae said acute care hospital loans backed the by Federal Housing Administration are eligible for Multifamily REMIC transactions starting in August 2011.
To be considered eligible collateral, the Section 242 Loans underlying the related Ginnie Mae MBS pools may not include any equipment as part of the security for such loans.
“The inclusion of MBS backed by acute care hospital loans in REMIC transactions will ultimately increase the liquidity of the securities,” said Ginnie Mae President Ted Tozer. “This will, in turn, substantially lower the financing costs for hospitals.”
Department of Housing and Urban Development Guidelines require that the facility have no more than 50% of patient days attributable to chronic convalescence and rest, drug and alcohol, epileptic, nervous and mental deficiency and tuberculosis.
While there is no limit on the amount that can be financed, the loan to value ration may not exceed 90%.
View the announcement here.