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The State of Ginnie Mae MBS Issuance

Ginnie Mae, a wholly-owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country, has announced that issuance of its mortgage-backed securities (MBS) hit a total of $30.31 billion for March 2018. That’s down slightly from February’s total of $33.2 billion and January’s $36.4 billion.

Ginnie’s monthly MBS issuance has been trending downward since August 2017, when it totaled $44.1 billion.

Breaking things down further, Ginnie’s March’s issuance included $28.659 billion of Ginnie Mae II MBS and $1.651 billion of Ginnie Mae I MBS, which includes $1.412 billion of loans for multifamily housing.

Total unpaid balance for Ginnie Mae I and II MBS as of February 2018 totaled $1.934 trillion, up from $1.798 trillion in February 2017.

According to Ginnie Mae’s latest release, Ginnie’s MBS programs “directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.”

Ginnie Mae I MBS “are modified pass-through mortgage-backed securities on which registered holders receive separate principal and interest payments on each of their certificates.” Ginnie Mae I MBS 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.”

MBS issuance for Fiscal Year 2018 to the end of March totaled $216.949 billion. Ginnie Mae total outstanding principal balance of $1.942 trillion is up from $1.805 trillion in March 2017.

About Author: David Wharton

David Wharton, Editor-in-Chief at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has nearly 20 years' experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. He can be reached at [email protected].

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