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Ginnie Mae: MBS Breaks Annual Issuance Record

Ginnie Mae [1] recently announced that its mortgage back securities (MBS) issuance totaled $504.58 billion for the fiscal year 2017 (FY17)—representing an all-time annual issuance record. Last year, the issuance totaled $466.6 billion.

“Ginnie Mae’s continued strong growth is a testament to our talented and dedicated professional staff, said Michael Bright, Ginnie Mae Acting President.  "In the year ahead we look forward to continuing the performance that has made Ginnie Mae the globally recognized and accepted U.S. government mortgage-backed security."

Ginnie Mae’s release [2] also reports the monthly breakdown of issuance, with the latest information on September. According to the federal government agency, despite the year-over-year increase, MBS issuance in September totaled $41.58 billion, which represents a decrease from August issuance of $44.13 billion.

Further September issuance updates include $39.62 billion of Ginnie Mae II MBS—modified pass-through securities where registered holders receive an aggregate principal and interest payment from a central paying agent.

The release notes that 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.”

Additionally, September issuance on Ginnie Mae I MBS reported $1.96 billion, which provided access to $40.25 billion in capital for single-family home loans and $1.33 billion for multifamily home loans, Ginnie Mae reported.

Similar to Ginnie Mae II MBS, the Ginnie Mae I MBS are also modified pass-through securities. However, Ginnie Mae I MBS ensures registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae reports that these securities can include “single family, multifamily, manufactured home, and project construction loans.”

Overall, the total outstanding unpaid principal balance increased to $1.884 trillion—an increase from $1.871 trillion in August 2016. Meanwhile, the total principal balance is up year-over-year from $1.728 trillion at the end of FY16.