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Ginnie Mae’s MBS Portfolio Nears $2.5T in August

Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.458 trillion in August, including $38.1 billion of total MBS issuance, leading to $18 billion of net growth. Issuance for this month was approximately the same as July’s $38 billion, but lower than June’s $39.5 billion.

August’s new MBS issuance supports the financing of more than 123,000 households, including 59,000 first-time homebuyers. Approximately 76% of the August MBS issuance reflects new mortgages that support home purchases, as refinance activity remained low due to higher interest rates.

For the 2023 calendar year to date, Ginnie Mae supported the pooling and securitization of over 410,000 first-time homebuyer loans. The August issuance includes $36.9 billion of Ginnie Mae II MBS and $1.2 billion of Ginnie Mae I MBS, including approximately $1.01 billion in loans for multifamily housing.

In July, Ginnie Mae’s MBS portfolio outstanding grew to $2.440 trillion, including $37.5 billion of total MBS issuance, leading to $18 billion of net growth. Issuance for this month was lower than June’s $39 billion, but higher than May’s $34 billion, and April’s $33 billion.

August also marked the 55th anniversary of Ginnie Mae, as the Honorable Marcia L. Fudge, Secretary of the U.S. Department of Housing and Urban Development (HUD), marked the occasion by discussing the important contributions Ginnie Mae has made to expand access to affordable housing and mortgage lending for historically underserved communities.

“Since its founding, Ginnie Mae has helped make the American Dream of equitable, affordable homeownership and rental opportunities a reality for millions of Americans. It has served as the principal financing arm for government-mortgage loan programs that serve low- and moderate-income households, first-time homebuyers, veterans, rural communities, and Tribes.

“We recognize the tremendous contributions of Ginnie Mae and commit to continuing to work together to build a more equitable housing finance system that makes access to safe, secure, and fair housing possible for all.

“This year marks the 55th anniversary of the passage of the Housing and Urban Development Act of 1968, which President Lyndon B. Johnson signed into law in 1968 and marked the creation of the Government National Mortgage Association, or Ginnie Mae, as a government corporation within HUD. The law went into effect shortly after the enactment of the Civil Rights Act of 1968, which included the Fair Housing Act, enshrining the right of all Americans to access fair, affordable housing, and mortgage lending free from discrimination.

Ginnie Mae President Alanna McCargo added, “I am grateful for Secretary Fudge’s recognition and strong support of Ginnie Mae’s critical work. Housing is a powerful tool for building economic security, opportunity, and intergenerational wealth. From day one, Ginnie Mae’s mission has always been to serve those facing barriers to attaining the American Dream of homeownership. During Ginnie Mae’s 55-year history, we have helped millions of low-to-moderate income Americans, first-time homebuyers, veterans, and households in rural and tribal communities attain affordable housing and rental opportunities. We remain deeply committed to building on that foundation today.”

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.

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