Approximately 191,000 homes and apartment units were financed by Ginnie Mae [1] guaranteed mortgage-backed securities (MBS) in February, as Ginnie Mae’s MBS issuance volume for February 2022 hit $53.01 billion.
“The release of February MBS pool factors and prepayment activity show encouraging results,” said Ginnie Mae Office of Capital Markets SVP John Getchis [2]. “Noticeably, borrower default-related prepayments occurring in Ginnie Mae’s securities continue their trend of monthly declines. February’s default-related prepayments consisted of less than 29,000 loans, the lowest level since April 2020, and well below the 48,708 average of the preceding 12-months. This trend improves the value proposition of Ginnie Mae MBS relative to other fixed-income and MBS investments.”
Approximately 230,000 homes and apartment units were financed by Ginnie Mae guaranteed mortgage-backed securities (MBS) in January [3], as MBS issuance volume for January 2022 hit $62.98 billion.
A breakdown of February 2022 issuance of $53 billion includes $50.26 billion of Ginnie Mae II MBS and $2.75 billion of Ginnie Mae I MBS, which includes approximately $2.59 billion in loans for multifamily housing. As of February 28, Ginnie Mae's total outstanding principal balance stood at $2.179 trillion, up from $2.168 trillion in January 2022, and up from $2.106 trillion year-over-year.
In late January, Ginnie Mae issued a new memorandum (APM 22-01) [4] stating that they are streamlining its documentation requirements for servicers participating in the Federal Housing Administration’s (FHA) Advanced Loan Modification program (ALM).
The memo did away with the requirement for recordation and title insurance in some cases. The new policy also supports the Biden Administration’s “goal of assisting homeowners impacted by the pandemic get on the road to economic recovery” by creating a more efficient process so that servicers can assist more homeowners to transition from forbearance to permanent loan modifications.