The total outstanding mortgage-backed securities (MBS) at the Government National Mortgage Association or Ginnie Mae [1] in July climbed to $1.98 trillion from $1.85 trillion during the same period a year ago. According to the agency, whose MBS programs directly support housing finance programs administered by the Federal Housing Administration, and other related agencies, its issuance of MBS totaled $36.77 billion in July.
Breaking down these issuances, Ginnie Mae said that they included $35.38 billion of Ginnie Mae II MBS and $1.39 billion of Ginnie Mae I MBS, which includes $1.229 billion of loans for multifamily housing.
Ginnie Mae data indicated that issuances for single-family home loans remained unchanged at $162 million month-over-month. However, they declined from $463 million recorded during the same period last year. Overall issuances for single-family and multifamily loans also declined year over year to $1.3 billion from $1.9 billion during the same period last year.
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. An Issuer may participate in the Ginnie Mae II MBS either by issuing custom, single-Issuer pools or through participation in the issuance of multiple-Issuer pools, which combine loans with similar characteristics.
On the other hand, Ginnie Mae 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 I securities can include single-family, multifamily, manufactured home and project construction loans.
Earlier, last week, Ginnie Mae had issued a bulletin highlighting processing changes to the HMBS loan-level disclosures beginning with the August 2018 new issuances disclosure and the July monthly disclosure.
Last month Michael Bright, EVP, and COO at Ginnie Mae laid out his vision for the agency during his testimony at the Senate Banking Committee’s hearing to consider his nomination as the President of Ginnie. Bright, who was nominated for this position by the Trump administration in late May said that Ginnie Mae’s bond and its brand were globally recognized as the most pristine mortgage security in the world. “This is because of Ginnie Mae’s track record of success and our robust process for ensuring the timely payment of principal and interest to security holders,” he said. “Ginnie Mae has never missed a payment in its 50 years of existence, even during the financial crisis.” You can read more about Bright's vision for Ginnie Mae here [2].
In June, issued an All Participants Memorandum (APM) announcing the implementation of changes to pooling eligibility requirements for Department of Veteran Affairs' (VA) insured or guaranteed mortgages under the "Loan Seasoning for Ginnie Mae Mortgage-Backed Securities," provision. These changes affect security issuances on or after June 1, 2018, but do not otherwise affect the guarantee or composition of MBS issued before that date. You can read more about the changes by clicking here [3].