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Ginnie Mae Issues $72B in MBS, Publishes RFI

Ginnie Mae mortgage-backed securities (MBS) issuance volume was $72.45 billion in June 2021, the 12th consecutive month that volume has exceeded $70 billion. Ginnie Mae MBS issuance reflects the liquidity of the program and its value in meeting the mortgage needs of homebuyers and rental property owners. Approximately 272,280 homes and apartment units were financed by Ginnie Mae guaranteed MBS in June.

“Robust issuance and consistent investor demand demonstrate the utility of the Ginnie Mae MBS program and its role in supporting affordable homeownership and rental housing,” said Ginnie Mae Acting EVP Michael Drayne. “Our commitment to maintaining a strong and innovative MBS program that produces the types of securities investors demand and that Issuers can use to finance home loans in their communities is the foundation of Ginnie Mae’s mission.”

A breakdown of June issuance of $72.45 billion includes $68.98 billion of Ginnie Mae II MBS, and $3.47 billion of Ginnie Mae I MBS, which in turn includes $3.37 billion of loans for multifamily housing. Ginnie Mae's total outstanding principal balance as of June 30 was $2.117 trillion, up from $2.114 trillion in May, and down slightly from $2.125 trillion in June 2020.

Ginnie Mae has also published a Request for Input (RFI) on updates to eligibility requirements for single-family MBS issuers. Responses to the RFI are due Monday, August 9, 2021.

"This announcement underscores Ginnie Mae’s commitment to continuously assess its MBS Guide requirements with a goal of continuing to ensure Issuer success in our program, while minimizing risk to the government’s unconditional guarantee,” said Ginnie Mae SVP and Chief Risk Officer Gregory Keith.

The RFI was drafted in order:

  • To address all lines of mortgage banking activity (including the interest rate risk to origination pipelines), and the entirety of the issuer’s financial profile;
  • To introduce risk-based capital requirements, reflecting the varying risk associated with different asset types;
  • To align our requirements to the greatest degree possible with the other governmental bodies who regulate this area; and
  • To make the requirements easy to calculate and integrate into an issuer’s capital planning.

Click here to view Ginnie Mae’s RFI.

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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