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Ginnie Mae’s MBS Portfolio Grows by $23B in October

Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.3 trillion in October 2022, boosted by $37 billion of total MBS issuance, leading to $23 billion of net growth. October’s MBS issuance supports the financing of more than 125,000 households, including more than 57,000 first-time homebuyers. Approximately 70% of October MBS issuance reflects new mortgages that support home purchases, as refi activity continued to decline due to higher mortgage rates.

Mortgage rates rode the 7%-mark throughout October, and just today, Freddie Mac reported the 30-year fixed-rate mortgage (FRM) back above that mark at 7.08% for the week ending November 10, 2022.

Ginnie Mae’s October issuance includes $36.25 billion of Ginnie Mae II MBS and $1.43 billion of Ginnie Mae I MBS, including approximately $1.32 billion in loans for multifamily housing.

“Ginnie Mae’s role as an essential source of mortgage finance is clearly illustrated by the strong growth in our total portfolio and the large share of MBS supporting first-time homebuyers,” said Ginnie Mae President Alanna McCargo. “The steepest increase in mortgage rates in decades is a headwind for homebuyers, but Ginnie Mae’s guaranty and insuring agency partners are here with products and programs to help consumers achieve their dream of homeownership.”

Ginnie Mae recently announced policy changes to strengthen the mortgage sector by increasing issuer liquidity by shortening the re-pooling seasoning requirement for reperforming loans, from six months to three months, and allowing issuers the option to pool re-performing loans into TBA eligible Ginnie Mae II Multi-Issuer Pools. Ginnie Mae plans to effectuate these policy changes no later than the end of the first quarter of 2023 with a formal policy notice forthcoming.

In another recent move to boost the housing market and protecting against risk, Ginnie Mae extended the mandatory implementation date of the RBC requirement to December 31, 2024. The RBC requirement is part of a larger set of financial eligibility guidelines released simultaneously with Federal Housing Finance Agency (FHFA) requirements on August 17, 2022. The RBC requirement is an important component of measuring risk, designed to strengthen and bolster the Issuers that support the government mortgage market.

“The state of the U.S. housing market is evolving rapidly, and housing affordability has eroded nationwide, with first-time homebuyers and lower-income households that Ginnie Mae exists to serve feeling the effects most acutely,” added McCargo. “Our issuers and the mortgage servicing industry are integral to the government mortgage system, and they are also adapting and adjusting to market conditions. As always, we are focused on working with our counterparties to manage risks and ensure continuity in serving the most underserved households through all economic cycles.”

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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