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MBS Represent ‘Strong Source of Capital’ for Homeowners

Ginnie Mae on Tuesday announced that mortgage-backed securities (MBS) have continuously been a "strong source of capital for America's homeowners."
The company, which funds government-backed loans, reports more than $76.2 billion of securities issued in November, the fifth consecutive month issuance topped $70 billion.
The November numbers represent home financing for more than 274,000 households, according to Ginnie Mae.
"Historically low interest rates continue to drive home purchases and mortgage refinancing," said Ginnie Mae EVP Eric Blankenstein. "As we enter a New Year, investors and issuers can be sure that Ginnie Mae is focused on meeting the diverse product needs of investors and issuers that keep capital flowing to millions of families each year."
The November issuance of $76.29 billion includes:
  • $72.43 billion of Ginnie Mae II MBS
  • $3.86 billion of Ginnie Mae I MBS, which includes $3.77 billion of loans for multifamily housing.
Ginnie Mae's total outstanding principal balance as of November 30 was $2.115 trillion, essentially flat with October 2020 and up from $2.111 trillion in November 2019.
Ginnie Mae describes its I and II MBS as follows:

Ginnie Mae I MBS are modified pass-through mortgage-backed securities for which registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae I securities can include single-family, multifamily, manufactured home and project construction loans.

Ginnie Mae II MBS are modified pass-through mortgage-backed securities for which registered holders receive an aggregate principal and interest payment from a central paying agent. An Issuer may participate in the Ginnie Mae II MBS either by issuing custom, single-Issuer pools or through participation in the issuance of multiple-Issuer pools, which combine loans with similar characteristics.

According to the company, Ginnie Mae Ginnie MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the Department of Housing and Urban Development’s Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service.

According to Ginnie Mae, it is the "only MBS to carry the explicit full faith and credit of the United States government."

For more information on monthly MBS issuance, UPB balance, REMIC monthly issuance and global market analysis visit Ginnie Mae Disclosure.

About Author: Christina Hughes Babb

Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Contact Christina at christina.hughesbabb@thefivestar.com.

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