Ginnie Mae [1] mortgage-backed securities (MBS) issuance volume was $70.85 billion in August 2021, reflecting the liquidity of the MBS program and its value in meeting the mortgage needs of homebuyers and rental property owners. Approximately 260,779 homes and apartment units were financed by Ginnie Mae guaranteed MBS last month. In July, MBS issuance volume [2] was $74.29 billion.
“Although loan production is slowing, Ginnie Mae continues to see strong MBS issuance and steady investor demand, a reflection of 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 [3]. “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 continues to drive our efforts every day.”
A breakdown of August 2021 issuance of $70.85 billion includes $67.75 billion of Ginnie Mae II MBS and $3.10 billion of Ginnie Mae I MBS, which in turn includes approximately $3.0 billion of loans for multifamily housing. Ginnie Mae's total outstanding principal balance as of August 31 was $2.124 trillion, up from $2.121 trillion in the prior month, and up slightly from $2.118 trillion in August 2020.
In early July, Ginnie Mae closed out its Request for Input (RFI) [4] on updates to eligibility requirements for single-family MBS issuers, as the entity 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.