Ginnie Mae’s Mortgage-Backed Securities Portfolio Tops $2 Trillion, Providing More Americans the Opportunity for Homeownership

Ginnie Mae’s Mortgage-Backed Securities Portfolio Tops $2 Trillion, Providing More Americans the Opportunity for Homeownership

WASHINGTON, D.C. – (RealEstateRama) — Ginnie Mae’s mortgage-backed securities (MBS) portfolio has reached $2.008 trillion in unpaid principal balance, the federal guarantor announced today. That’s up from $1 trillion just eight years ago.

Ginnie Mae

“The fact that Ginnie Mae has reached $2 trillion in outstanding principal underscores the corporation’s role and highlights our responsibilities as a pillar of America’s secondary mortgage market,” Ginnie Mae EVP and Chief Operating Officer Michael Bright said of the milestone. “Ginnie Mae’s explicit, transparent and paid-for government guaranty has set our MBS apart as one of the most reliable fixed-income securities in the world.”

Now in its 50th year, Ginnie Mae has seen a tremendous amount of growth over the last decade due to its reliable business model that ensures the timely payment of principal and interest to security holders. The safe, efficient and rapid growth has been facilitated by a technology platform that is undergoing continuous modernization, as outlined in the recent white paper “Ginnie Mae 2020.”

Ginnie’s business model significantly limits risks to taxpayers by providing a safe, effective and government-backed channel for the flow of capital for U.S. mortgages from around the world. Ginnie has never missed a payment — even during the financial crisis — and returns money to the U.S. Treasury every year. By continuing to attract global capital into the housing finance system, Ginnie helps to support homeownership for veterans, first-time homebuyers, and millions of low- and moderate-income Americans throughout the country.

Approximately $35.75 billion of Ginnie Mae MBS was issued in September. September issuance is comprised of $34.58 billion of Ginnie Mae II MBS, and $1.17 billion of Ginnie Mae I MBS, of which $1.03 billion is backed by multifamily mortgages. Total MBS issuance for fiscal year 2018 was $434.7 billion.

About Ginnie Mae
For the past 50 years, Ginnie Mae has provided Americans, including veterans, first-time homebuyers, and low- and moderate-income borrowers, the opportunity for homeownership. Ginnie Mae is a wholly-owned government corporation that attracts global capital into the housing finance system to support homeownership for millions of homeowners throughout the country. Ginnie Mae mortgage-backed securities (MBS) programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.

Contact: Douglas Robinson

(202) 475-7818

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Ginnie Mae

At Ginnie Mae, we help make affordable housing a reality for millions of low- and moderate-income households across America by channeling global capital into the nation's housing markets. Specifically, the Ginnie Mae guaranty allows mortgage lenders to obtain a better price for their mortgage loans in the secondary mortgage market. The lenders can then use the proceeds to fund new mortgage loans available. Without that liquidity, lenders would be forced to keep all loans in their own portfolio, meaning they would not have adequate capital to make new loans.

Unlike the GSEs, Ginnie Mae is profitable. We do not buy or sell loans or issue mortgage-backed securities (MBS). Therefore, our balance sheet doesn't use derivatives to hedge or carry long term debt.

Contact:

Phone: (202) 708-0926

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