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MBS’ Outstanding Principal Balances Approach $2 Trillion

The total outstanding balance for Mortgage Backed Securities (MBS) at Ginnie Mae approached the 2 trillion-mark increasing to $1.9 trillion in April according to the latest report on MBS issuance by Ginnie Mae on Monday.

On a month-over-month basis, the total issuance of MBS increased to $34 billion in April from $30 billion in March. This included $32.4 billion of Ginnie Mae II MBS and $1.6 billion of Ginnie Mae I MBS, Ginnie Mae said. However, this was a slight decline from $37 billion recorded during the same period last year.

Of the $1.6 billion MBS I securities, loans for multifamily housing remained unchanged at $1.4 billion of loans were for multifamily housing. However, loans for single-family homes declined from $239 million in March to $185 million in April.

The report indicated that on a year-over-year basis, the total outstanding principal increased from $1.8 trillion in April 2017 to $1.9 trillion during the same period this year.

On a quarterly basis, the report indicated that the issuance activity of MBS at Ginnie Mae stood at $117 billion in the first quarter of 2018, a decline from $147 billion recorded in the first quarter of 2017. The total issuance of MBS so far this year stood at $134 billion compared to $473 billion recorded for the whole of 2017, the report said.

While Ginnie Mae I MBS are modified pass-through MBS on which registered holders receive separate principal and interest payments on each of their certificates, Ginnie Mae II MBS are securities for which registered holders receive an aggregate principal and interest payment from a central paying agent. Ginnie Mae I securities can include single family, multifamily, manufactured homes, and project construction loans.

About Author: Radhika Ojha

Radhika Ojha, Online Editor at the Five Star Institute, is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her master’s degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Dallas, Texas. You can contact her at Radhika.Ojha@theMReport.com.

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