Ginnie Mae Portfolio Netted $15B in Growth During October

According to a new news release from Ginnie Mae, their mortgage-backed securities portfolio (MBS) outstanding balance grew to $2.492 trillion in October, a number that includes $33.8 billion of total MBS issuance which has led to Ginnie Mae picking up a cool $15 billion of net portfolio growth in a single month. 

What did all of this money go towards? October’s new MBS supported the financing of nearly 110,000 households, of which 53,000 were first-time buyers. 

Approximately 75 percent of the October MBS issuance reflects new mortgages that support home purchases, because refinance activity remained low due to higher interest rates. 

The October issuance includes $32.5 billion of Ginnie Mae II MBS and more than $1.3 billion of Ginnie Mae I MBS, including approximately $1.2 billion in loans for multifamily housing. 

For the 2023 calendar year to date, Ginnie Mae supported the pooling and securitization of more than 520,000 first-time homebuyer loans. 

For more information on monthly MBS issuance, Unpaid Principal Balance (UPB), real estate investment conduit (REMIC) monthly issuance, and global market analysis, visit Ginnie Mae Disclosure. 

In addition, supporting Ginne Mae’s mission to promote broader access to mortgage financing, the company has announced the launch of a “social bonds” label for single-family forward mortgage-backed securities supporting its mission-oriented work and communicate to investors the positive social impacts of its financing framework.  

The launch will help increase investor awareness of the value proposition in Ginnie Mae securities, increasing opportunities to attract new sources of capital in support of lenders and borrowers Ginnie Mae ultimately serves.  

The prospectus revisions highlight structural aspects of Ginnie Mae’s programs that have a significant social impact by promoting broader access to mortgage financing for historically underserved communities. With the revision to the prospectus, investors will have the choice, along with MBS pool level disclosure data, to independently determine Ginnie Mae MBS as “social bonds,” meaning the underlying collateral is designed to support a positive social and affordable housing outcome. The new Social Impact and Sustainability Framework outlines the characteristics of Ginnie Mae’s Social Bonds and broader portfolio. 

Additional information about Ginnie Mae is available here.