Ginnie Mae announced Tuesday that it saw record volume of mortgage-backed securities (MBS) issuance in April, as more than $63 billion of Ginnie Mae were issued in April.
This is the ninth consecutive month MBS issuance exceeded $50 billion and the second time the volume was above $60 billion in a month.
The $63 billion in MBS issuance is a considerable increase from the $55 billion in May and $53 billion.
Ginnie Mae stated single-family mortgage rates consistently near-record-low levels last summer and the scalability of the Ginnie Mae platform to meet market demand and fuel strength in the MBS business.
Platinum securities volume reached $6.6 billion in April via 30 transactions, up from $4.4 billion and 40 transactions in March.
Ginnie Mae also said April showed strong issuance of $1.6 billion in the Ginnie Mae Jumbo Only option.
“Overall, the trend in Ginnie Mae securities is positive, illustrating the agency’s strong commitment to meeting the needs of Issuers, investors, and to the ultimate benefit of the homeowners and renters who rely on a steady supply of mortgage capital,” a release states.
Despite the optimistic numbers by Ginnie Mae, a report by Bloomberg found that the Bloomberg Barclays U.S. MBS Index was -0.3% earlier this month. This is also taking into account the $688 billion in support injected by the Federal Reserve.
This is the worst reading over a similar period since 2013, according to Bloomberg, when that reading was -0.6%.
The report added that while April saw an excess return of 0.48%—mostly due to the $295 billion in support by the fed—last month’s $101 million in central bank brought a return of just 0.03%.
Also, the April prepayment report saw aggregate conventional Fannie Mae 30-year speeds rise 26% following the prior month’s 42% increase.
Although May prepayment speeds are expected to decline between 10-15%.
Another issue is the wave of forbearance after recent legislation allowed homeowners to take advantage of these plans. As of May 17, servicers have seen 8.36% of their loans fall into forbearance, according to the Mortgage Bankers Association.