Ginnie Mae Reports Record-Breaking Volume In July

Posted by Patrick Barnard on August 20, 2015 No Comments
Categories : Residential Mortgage

Ginnie Mae reports that it guaranteed $47.06 billion in mortgage-backed securities (MBS) in July, surpassing the record set in July 2009 of $46.1 billion.

As of this fiscal year, Ginnie Mae had guaranteed more than $346 billion in MBS, compared to $242 billion as of July 2014.

‘This growth is clear indication of the value of our single securitization platform,’ says Ted Dozer, president of Ginnie Mae, in a release. ‘The scalability of our platform allows Ginnie Mae to support the shift from traditional depository institutions to new entrants, which have primarily been non-depositories. The rapid rise of these new entrants has been critical to our growth and to keeping mortgage credit available to middle class America.’

Ginnia Mae says the increase in volume is, in part, due to a recent cut to the Federal Housing Administration's (FHA) mortgage insurance premiums.

In addition, interest rates for FHA, Veterans Affairs and Rural Housing Service loans have been more competitive in recent months.

Of the volume Ginnie Mae saw in July, 60% was purchase, while 34% was refinance.

‘The increase in purchase activity is further proof that the housing recovery is moving into high gear,’ Tozer says.

Currently, Ginnie Mae's mortgage-backed securities (MBS) portfolio stands at $1.57 trillion in unpaid principal balance (UPB).

‘Despite this rapid growth, the Ginnie Mae platform, while fueling competition, also spreads risk among our issuers,’ Tozer says.

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