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Ginnie Mae’s MBS Issuance Volume Rises

Ginnie Mae mortgage-backed securities (MBS) issuance volume was $74.29 billion in July 2021. 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 274,882 homes and apartment units were financed by Ginnie Mae guaranteed MBS in July 2021.

Issuance in July was up over June 2021’s totals, showing a $1.84 billion rise in volume month-over-month.

“Strong issuance and steady investor demand demonstrate the broad appeal and value of the Ginnie Mae MBS program and its role in financing affordable homeownership and rental housing,” said Ginnie Mae Acting EVP Michael Drayne. “Our commitment to maintaining an innovative MBS program that produces the types of securities investors demand and that Issuers can use to help consumers purchase homes in their communities is the foundation of all that we do.”

Issuance in July included $70.19 billion of Ginnie Mae II MBS, and $4.11 billion of Ginnie Mae I MBS, which, in turn, includes $3.99 billion of loans for multifamily housing. Ginnie Mae's total outstanding principal balance as of July 31 was $2.121 trillion, up from $2.112 trillion in the prior month, and up slightly from $2.115 trillion in July 2020.

Earlier this week, Ginnie Mae closed out its Request for Input (RFI) on updates to eligibility requirements for single-family MBS issuers, as it continues to assess its MBS Guide requirements. 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.

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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