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LENDER/SERVICER PROFILE GOVERNMENT AGENCY Ginnie Mae key personnel Theodore W. Tozer company vitals President Headquarters: Washington, D.C. Mary K. Kinney Phone: 202.708.1535 EVP and COO Take a look inside the numbers Online: GinnieMae.gov Michael J. Najjum, Jr. SVP and CFO Gregory A. Keith SVP and Chief Risk Officer Thomas R. Weakland SVP, Securities Operations John F. Getchis SVP, Capital Markets Barbara Cooper-Jones SVP, Data and Technology Brenda Thomas VP, Management Operations business summary * Portfolio Stats » Total assets: $23.7B » Single-family MBS guarantees: $388B (FY 2012) » Composition: 100% of FHA fixedrate single-family loans and 98.4% of VA fixed-rate single-family loans placed into Ginnie Mae pools » Outstanding single-family MBS: $1.2T » HMBS portfolio (reverse mortgages): $36.9B » MBS guarantees since 2008: $1.7T Portfolio Growth Total Assets » 2012: $23.7B » 2011: $18.9B » Annual Change: +25.3% Revenue » 2012: $1.25B » 2011: $1.06B » Annual Change: +17.1% Expenses » 2012: $86.0M » 2011: $93.7M » Annual Change: -8.2% *Ginnie Mae does not service or originate loans; data based on loans securitized or guaranteed as of September 30, 2012 Note: September 30 marks the end of Ginnie Mae's fiscal year The Government National Mortgage Association (Ginnie Mae) is a government-owned corporation within the U.S. Department of Housing and Urban Development that guarantees mortgage-backed securities (MBS) backed by federally insured or guaranteed loans. Ginnie Mae was formed when Congress split Fannie Mae in 1969 into two entities—the existing Fannie Mae and Ginnie Mae. Unlike Fannie Mae and Freddie Mac, Ginnie Mae does not purchase mortgages from lenders, nor does it buy, sell, or issue securities. It packages government-backed loans for other issuers to make available on the secondary market. Ginnie Mae offers the only MBS that carry the full faith and credit guaranty of the U.S. government. Ginnie Mae Issuers by Institution Type Mortgage Banks: 69% Savings and Loans: 6% Commercial Banks: 14% company's l atest January 31, 2013 U.S. Fed Balance Sheet Shrinks in the Latest Week Others: 5% Credit Unions: 4% Mutual Savings Banks: 2% *As of September 30, 2012 Note: September 30 marks the end of Ginnie Mae's fiscal year The U.S. Federal Reserve's balance sheet shrank in the latest week with reduced holdings of mortgage-backed securities, Fed data released on Thursday showed. The Fed's balance sheet - a broad gauge of its lending to the financial system - stood at $2.991 trillion on Jan. 30, compared with a record-large $2.994 trillion on Jan. 23. The Fed's ownership of mortgage bonds guaranteed by Fannie Mae, Freddie Mac and the Government National Mortgage Association (Ginnie Mae) totaled $965.78 billion compared with $983.17 billion the previous week. The Fed's holdings of Treasuries totaled $1.710 trillion as of Wednesday versus $1.697 trillion the previous week Earnings October 22, 2012 Risk Management —Reuters Executives, Officials Discuss GSE Developments at MBA Conference Government agencies have restructured themselves for better risk protection to help still-struggling mortgage holders and to position themselves for the slow climb out of the mortgage and housing crisis of 2006-2009, executives told the audience at a Mortgage Bankers Association conference in Chicago . . . . Ginnie Mae, while continuing to work with Fannie and Freddie, has also introduced programs for small lenders and is continuing to provide better transparency for investors, according to president Theodore Tozer. Ginnie Mae is upgrading its technology, which will enable it to provide full disclosure on all of its 8 million loans within the next nine to 12 months. Currently, Ginnie Mae provides full disclosure on its loan pools but doesn't have the capability to provide the same visibility down to the individual loan level. The new technology and transparency will also enable Ginnie Mae to more quickly recognize any trends so that it can respond faster if risk appears to be on the rise or if other problems emerge. —TheMReport.com know this Ginnie Mae created and guaranteed the first-ever mortgage-backed security in 1970, a financing vehicle that transformed the capital market and opened homeownership up to more aspiring American families. business summary * » Excess revenues over expenses (net profit): $609.6M » Retained earnings: $16.4B » Ginnie Mae and FHA receipts projected for 2013: $9.4B » At 700, avg. FHA credit score is 6080 points higher than boom years » Contributed 250 loans from defaulted servicer portfolios to an FHA distressed asset sale (first-time seller) » FHA indemnification safe harbor after five years, expected to reduce refi incentives for riskier, seasoned loans » Performed compliance field reviews of more than 54.1% of agency's 266 active issuers and 60.4% of its 48 active document custodian sites » 90% of single-family volume from 25 issuers, compared to 90% from 10 issuers in 2010 *Ginnie Mae does not service or originate loans; data based on loans securitized or guaranteed as of September 30, 2012 Sources: Ginnie Mae (11/13/2012, 1/23/2013), U.S. Department of Housing and Urban Development (11/16/2012, 1/24/2013), Barclays (1/25/2013) 96 states in portfolio* Note: September 30 marks the end of Ginnie Mae's fiscal year