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Ginnie Mae Enhances MBS Data Disclosure

Ginnie Mae [1], the principal financing arm for government mortgage loans, today announced that it is implementing a new Environmental, Social, and Governance (ESG) stratification record in the Single-Family Supplemental File that is part of Ginnie Mae’s Disclosure Data Download [2] page.

According to a Ginnie Mae press release, the objective is to give Ginnie Mae mortgage-backed securities investors information that supports their sustainable investing decisions and solutions. Department of Housing and Urban Development (HUD) representative Douglas Robinson writes that the objective is to give Ginnie Mae mortgage-backed securities investors information that supports their sustainable investing decisions and solutions.

The ESG record will provide pool-level aggregate information about the extent of loans and unpaid principal balance (UPB) dollars that are in low- and moderate-income areas, Robinson reports.

The Low- and Moderate-income areas used in formulating this new disclosure record are defined by the Department of Housing and Urban Development (HUD) [3]. As a part of the HUD Community Development Block Grant Program, HUD delineates geographic areas that are designated as Low- and Moderate-income areas. The new disclosure aggregates to the pool level the Number of Loans, % of Loans, UPB Dollars, % UPB Dollars across low- and moderate-income areas applicable to the pool.

Any reader with questions pertaining to this recent announcement should send an email to investorinquiries@hud.gov [4]. Those inquiries will be addressed within 2 business days.

Ginnie Mae in 2013 began releasing monthly loan-level data for existing, active single-family mortgage-backed securities (MBS).

"The release of loan-level data for existing single-family MBS is an important step toward improving our transparency," Ginnie Mae President Ted Tozer said at the time. "Enhancing MBS disclosures assists Ginnie Mae in attracting global capital by meeting the needs of investors more effectively and enabling them to make better-informed investment decisions.

The company has since been continuing to enhance its MBS data disclosure system.