Ginnie Mae, the wholly owned government corporation that attracts global capital into the housing finance system announced on Tuesday that its issuance of Mortgage Backed Securities (MBS) over a two month period totaled 186.6 billion at the end of February 2018 taking its total outstanding principal balance to $1.93 trillion, an increase from $1.79 trillion reported during the same period last year. This is a slight increase from an outstanding of $1.92 trillion reported in January 2018.
According to the report, MBS rose above $1billion for the second time since 2016. Giving a breakdown of its monthly issuance in February, Ginnie Mae said that the breakdown included $31.51 billion of Ginnie Mae II MBS and $1.7 billion of Ginnie Mae I MBS. Together, these securities provided access to $33.56 billion in capital for single-family home loans and $1.38 billion for multifamily housing.
On a month-over-month basis, the issuance of Ginnie Mae II MBS was down $3.1 billion from $34.61 billion reported in January 2018. The issuance of Ginnie Mae’s I MBS remained unchanged from the month prior, however together they provided more capital for single-family home loans as well as multifamily housing in January compared with February.
Ginnie Mae’s I MBS are modified pass-through mortgage-backed securities on which registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae II MBS are modified pass-through mortgage-backed securities for which registered holders receive an aggregate principal and interest payment from a central paying agent.
Recently, Ginnie Mae had announced that the MPF Program backed by Ginnie Mae had also surpassed $1 billion in mortgage-backed securities (MBS) issued. The MPF Government MBS product was the result of a partnership forged by the Federal Home Loan Bank of Chicago and Ginnie Mae to issue securities guaranteed by Ginnie Mae and backed by mortgages originated by FHLB member financial institutions. The product provides mortgage lenders, particularly smaller institutions, direct access to the secondary mortgage market, and more options when creating mortgage products for their home-buying customers.