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Ginnie Mae Updates Its Outline for the Future

This week, Ginnie Mae [1] published an update to its Ginnie Mae 2020 white paper that was released in 2018. Apart from a detailed progress report on what it planned to accomplish by next year, the update also gave some proposals on housing finance reform.

The report noted that under the Presidential Memorandum signed in March 2019, Ginnie Mae and other federal
stakeholders "have been directed to propose reforms for the U.S. housing finance system."

Ginnie Mae said that this directive meant that the agency would modernize its operations and technology and also propose administrative and legislative changes, "that enhance our program requirements and our standards, ensuring safety and soundness."

Additionally, the report indicated that the reform plan could also include "further policy consideration not presented in this update."

Looking at the progress that the agency had made towards the goals enumerated in its Ginnie Mae 2020 white paper, the update indicated that Ginnie Mae's mortgage-backed securities (MBS) platform remained robust and secure. While modernization would remain a top priority, Ginnie Mae said that its state-of-the-art platform already had the ability to easily scale without market disruption or operational incidents" as demonstrated in the period since the 2008 financial crisis, when the total MBS outstanding grew from less than $500 billion to over $2.1 trillion today."

"At $2.1 trillion in size and growing, the Ginnie Mae MBS portfolio is an integral component of the U.S. mortgage finance system," said Maren Kasper, Acting President, Ginnie Mae. "Ginnie Mae continues to demonstrate its capacity to effectively operate and maintain a state-of-the-art technology platform and counterparty risk framework, keeping pace with innovation and evolution in the mortgage finance system."

The agency said that the update included its efforts to continue to improve operations, enhance the user experience, and move towards adopting digital mortgages against the modernizations benchmarks presented in its white paper last year.

Additionally, Ginnie Mae said that it continued to evolve its counterparty risk management program and maintaining a strong focus on program innovation.

"This allows us to fulfill our mission by facilitating liquidity in the American housing market, ensuring the health of the Ginnie Mae security and protecting taxpayer interests," Kasper said. "The report details the progress we have made in the last year and outlines our blueprint for the future."

Click here [2] to read the full report.