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Ginnie Mae Reports Record MBS Issuance in April

Ginnie Mae reported that its mortgage-backed securities (MBS) issuance volume for April 2021 was a record $89.70 billion. This total marks another strong month for Ginnie Mae, with its now-record issuance volume up from $82.25 billion issued in March, $77 billion issued in February, and $82.6 billion issued in January. Approximately 332,300 homes and apartment units were financed by Ginnie Mae guaranteed MBS in April of 2021.

“Investors continue to add Ginnie Mae MBS to their fixed-income portfolios because of the high-quality and liquidity of the securities,” said Ginnie Mae Acting Executive Vice President Michael Drayne. “Our commitment to maintain a strong and flexible MBS program that produces the types of securities investors demand is the foundation of Ginnie Mae’s ability to finance affordable homeownership and rental housing.”

A breakdown of April issuance of $89.70 billion includes $85.48 billion of Ginnie Mae II MBS and $4.22 billion of Ginnie Mae I MBS, which includes $4.16 billion of loans for multifamily housing.

Ginnie Mae's total outstanding principal balance as of April 30 was $2.109 trillion, up from $2.095 trillion in March, and down slightly from the April 2020 level of $2.145 trillion.

Ginnie Mae continues to lend a hand to struggling homeowners nationwide, working with an estimated 2.2 million homeowners currently in forbearance plans, according to the Mortgage Bankers Association (MBA). Of that total, the share of Ginnie Mae loans in forbearance decreased 20 basis points this week to just 5.82% of the overall volume.

"Homeowners who have exited forbearance and been able to take up their original payment again are performing at almost the same rate as the overall mortgage servicing portfolio," said Mike Fratantoni, MBA's SVP and Chief Economist

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.

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