Ginnie Mae Project Loans (GNPL), one of the major agency CMBS products, had a breakout year in 2020 as new issuance doubled since 2019. Typically fixed rate loans that have a maturity term of 35-40 years and full amortization, GNPL are backed by multi-family, health care and rural housing properties, and carry explicit US government guarantee and an outstanding balance of about $137 billion.

In this paper we provide an introduction of the project loans, including their characteristics and Real Estate Mortgage Investment Conduit (REMIC) features, and explain GNPL prepayment behavior and drivers captured by Yield Book GNPL prepayment model.