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Ginnie Mae MBS Issuance Topped $404B in FY 2023

Ginnie Mae has published its Annual Financial Report for fiscal year 2023, which highlights its financial performance and accomplishments from the past year, and its plans and approaches for strengthening the U.S. housing finance market and supporting affordable and equitable housing opportunities for all Americans.

As the report demonstrates, during fiscal year 2023, Ginnie Mae supported more than 1.2 million households, including underserved communities, first-time homebuyers, servicemembers, and veterans. Mortgage-backed security (MBS) issuance topped $404 billion, and the Ginnie Mae MBS outstanding reached $2.476 trillion.

“I am impressed with our financial results and the incredible impact Ginnie Mae has had on millions of American households, even in the face of a challenging housing market,” said Ginnie Mae President Alanna McCargo. “As the Annual Report shows, we continue to manage an incredibly complex program, numerous risks, and continued growth with strength and precision, and we are managing a number of emerging risks in the housing market with incredible efficiency. I am very proud of our outstanding team for continuously delivering results for the American people during a time when housing affordability has been greatly challenged.”

The 2023 Annual Financial Report demonstrates the progress made toward the strategic plan and, more importantly, the strong risk management, governance, and operational discipline that ensures the Ginnie Mae program continues to deliver strong and stable results for issuers, investors, and American taxpayers.

“For 55 years, Ginnie Mae has worked to make affordable, equitable homeownership and rental housing a reality for tens of millions of American households, with a particular focus on historically underserved communities. For five decades, Ginnie Mae has been a liquidity engine for government-backed mortgage loans to low-to moderate-income (LMI) borrowers, first-time homebuyers, seniors, veterans, rural communities, and Tribes,” added U.S. Secretary of Housing and Urban Development Marcia L. Fudge. “As we look ahead to the next 55 years, I am pleased Ginnie Mae will continue to lead and drive strategic objectives that will ensure an equitable, sustainable, and affordable U.S. housing finance system that serves all Americans.”

Ginnie Mae recently released All Participants Memorandum (APM) 23-14, which features the implementation of the new monthly financial reporting form via the Mortgage Bankers Financial Reporting Form (MBFRF) portal. With the substantial increase in mortgage originations from non-depository lenders, the new MBFRF Short Form is intended to evaluate Issuers’ financial soundness and strength.

“The adoption of the Mortgage Banking Financial Report Form Short Form is a critical step towards counter party financial transparency,” said McCargo. “This enhancement advances our work in managing risk and ensuring the Ginnie Mae MBS ecosystem is sustainable and stable, through all economic conditions and market cycles.”

In addition, Ginnie Mae’s APM 23-13 announced revisions to its definition of High Balance Loans were announced to align with the increased conforming loan limits recently announced by the Federal Housing Finance Agency (FHFA).

Under the new definition, effective for pools or loan packages submitted on or after January 1, 2024, a “High Balance Loan” is defined as a single-family forward mortgage loan with an original principal balance (minus the amount of any up-front mortgage insurance premium) that exceeds the following limits:

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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