Ginnie Mae has announced the expansion of its low- to moderate-income (LMI) disclosure initiative to include loan-level pool data for U.S. Department of Agriculture, Rural Housing Service (USDA-RHS) loans [1]. This pool level borrower income data will be used in Ginnie Mae's Mortgage-Backed Security Level "LMI Income" disclosure.
Ginnie Mae has been working to enhance its LMI disclosures, beginning with LMI geographic information two years ago, and the addition of LMI income earlier in 2023. These disclosures are key to Ginnie Mae's social and environmental mission, and align with increased environmental, social and governance (ESG) considerations from its mortgage-backed securities (MBS) investors.
As of April 2023, Ginnie Mae reported nearly 800,000 USDA-RHS loans in its portfolio representing more than 7% of Ginnie Mae's single-family MBS.
"We are excited to expand our work with USDA RHS and further support the critical role which they play in rural areas across the country," said Sam Valverde, Ginnie Mae's Principal EVP [2]. "These additional disclosures highlight a uniquely impactful portion of our business and enable investors to measure and potentially expand their impact across these communities."
USDA-RHS is one of Ginnie Mae's key government loan partners and offers a variety of programs to build and improve housing and essential community facilities in rural areas. The commitment and resources USDA-RHS bring to rural communities helps drive economic security and prosperity, with our MBS program creating the liquidity to finance their lending. USDA-RHS loans are integral to the economy and quality of life in rural communities, often the most affordable and efficient available mortgage.
Ginnie Mae’s MBS portfolio outstanding grew to $2.404 trillion in May 2023 [3], including $34 billion of total MBS issuance, leading to $14 billion of net growth. Issuance for this month was $1 billion higher than April’s reported total of $33 billion, and $6 billion higher than March’s recorded total of $28 billion.
May’s new MBS issuance supported the financing of more than 113,000 households, including more than 55,000 first-time homebuyers. Approximately 75% of the May MBS issuance reflects new mortgages that support home purchases, as refinance activity remained low due to higher mortgage rates. To date in 2023, Ginnie Mae has supported the pooling and securitization of more than 232,000 first-time homebuyer loans.