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Project: Fee Study Report

Agency: Ginnie Mae’s Office of Capital Markets

Falcon served as a subcontractor to Ernst and Young, Ginnie Mae’s Structured Transaction Financial Advisor, to assist with providing the Office of Capital Markets with financial advisory services as it relates to the implementation and creation of all multiclass programs and products. Falcon was specifically tasked to assist with evaluating fees charged in connection with the Ginnie Mae Platinum and Ginnie Mae real estate mortgage investment conduit (“REMIC”) Securities programs.

 

The objective of the Fee Study Report was to analyze:

  • If the fees reasonably compensate Ginnie Mae for its guarantee of principal and interest

  • If the fees are competitive with those charged by Fannie Mae and Freddie Mac for their comparable programs

  • Market sentiment with respect to the relative levels of program fees between Ginnie Mae, Fannie Mae, and Freddie Mac

  • If inter-Agency government relationships should be viewed differently than the public sector

 

The report provided an assessment of the pricing and cost variables associated with the issuance of a Ginnie Mae REMIC and Platinum securities, and included cost and pricing information on Fannie Mae and Freddie Mac REMIC and CUSIP aggregation programs.