Ginnie Mae announced that investors purchased a record $32 billion of Platinum Securities spread across 217 pools in the fiscal year that ended September 30. Platinum Securities volume in fiscal year 2018 was approximately $20 billion.
Ginnie Mae Platinum Securities are issued through the Ginnie Mae Multiclass Securities Program and, according to Ginnie Mae, "provide investors of mortgage-backed securities (MBS) with greater market and operating efficiencies."
Investors who hold multiple pools of MBS can combine new or existing MBS into a single Ginnie Mae Platinum Certificate. Once a Ginnie Mae Platinum Certificate has been created, it can be used in structured finance transactions, repurchase transactions and general trading.
"The record volume caps a strong year for the Ginnie Mae Platinum program," Ginnie Mae said in a statement.
In April, Ginnie Mae introduced a Platinum product for Home Equity Conversion Mortgages (HECMs), known as HMBS, part of the modernization of Ginnie Mae’s Platinum Securities Program. Investors can create Platinum products using fixed-rate MBS (15- and 30-year mortgages); Weighted Average Coupon (WAC) Adjustable Rate Mortgage (ARM) and Jumbo Only Fixed mortgages.
"The market adoption of the modernized process for Platinum products has been strong: prior to modernization, fiscal year 2017 production of Platinum securities with fixed-rate collateral was only $7.88 billion," Ginnie Mae noted. "Following modernization and automation inside the new MyGinnieMae portal, volume grew to more than $20 billion in fiscal year 2018."
“The results this year clearly demonstrate that our Platinum program modernization efforts are aligned with the needs of investors,” said John Daugherty, SVP, Office of Securities Operations. “Making it simpler for investors to manage their portfolio of Ginnie Mae securities, while enhancing the liquidity of their Ginnie Mae investments, supports our mission to foster a strong secondary mortgage market for government mortgage loans. We’re helping borrowers across the U.S. obtain the lowest mortgage rates an efficient market can offer.”