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Ginnie: HMBS Issuance Plummets to $771M

Last week ""Ginnie Mae"":http://ginniemae.gov/ released a report indicating that it guaranteed millions less mortgage-backed securities (MBS) in May than April, posting over $25.4 billion.


""The consistent performance of ""Ginnie Mae's"":http://ginniemae.gov/ MBS over the last several months has been very important to the secondary market as the economy continues to rebound,"" Ted Tozer, president of ""Ginnie Mae"":http://ginniemae.gov/, said in the statement.


""Issuers depend upon the strong pricing and execution of the ""Ginnie Mae"":http://ginniemae.gov/ MBS as a way to maintain the flow of capital for new mortgage loans, and investors depend upon the security of guaranteed timely interest and principal payments.""

According to the report, lenders relinquished more than $17.53 billion of ""Ginnie Mae"":http://ginniemae.gov/ II single-family pool and $5.54 billion in ""Ginnie Mae"":http://ginniemae.gov/ I single-family pools over the course of May. Reverse mortgage lenders made $771 million available in MBS products that month.

Through the MBS program, ""Ginnie Mae"":http://ginniemae.gov/ attracts capital from investors in international credit markets, seeking to secure rental and homeownership opportunities. Federal departments and agencies that participate in MBS include the ""Federal Housing Administration"":http://portal.hud.gov/hudportal/HUD?src=/federal_housing_administration, ""Department of Veterans Affairs"":http://www.va.gov/, ""Office of Public and Indian Housing"":http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing, and the ""Agriculture Department's"":http://www.usda.gov/wps/portal/usda/usdahome Rural Development Housing and Community Facilities Program.

A wholly-owned government entity, ""Ginnie Mae"":http://ginniemae.gov/ guarantees federally insured mortgages and securities for low-to-moderate income families across the country.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.

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