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INVESTMENT GOVERNMENT PROPERTY PRESERVATION
Journal
GINNIE MAE'S
MBS ISSUANCE
VOLUME RISES
Ginnie Mae mortgage-backed securities
(MBS) issuance volume was $74.29 billion in
July 2021. Ginnie Mae MBS issuance reflects
the liquidity of the program, and its value in
meeting the mortgage needs of homebuyers and
rental property owners. Approximately 274,882
homes and apartment units were financed by
Ginnie Mae guaranteed MBS in July 2021.
Issuance in July was up over June 2021's
totals, showing a $1.84 billion rise in volume
month over month.
"Strong issuance and steady investor
demand demonstrate the broad appeal and value
of the Ginnie Mae MBS program and its role in
financing affordable homeownership and rental
housing," Ginnie Mae Acting EVP Michael
Drayne said. "Our commitment to maintaining
an innovative MBS program that produces the
types of securities investors demand and that
issuers can use to help consumers purchase
homes in their communities is the foundation of
all that we do."
Issuance in July included $70.19 billion
of Ginnie Mae II MBS, and $4.11 billion of
Ginnie Mae I MBS, which, in turn, includes
$3.99 billion of loans for multifamily housing.
Ginnie Mae's total outstanding principal
balance as of July 31 was $2.121 trillion, up
from $2.112 trillion in the prior month, and up
slightly from $2.115 trillion in July 2020.
In August, Ginnie Mae closed out its
Request for Input (RFI) on updates to eligibility
requirements for single-family MBS issuers,
as it continues to assess its MBS Guide
requirements. e RFI was drafted in order:
» To address all lines of mortgage banking
activity (including the interest rate risk to
origination pipelines), and the entirety of
the issuer's financial profile;
» To introduce risk-based capital
requirements, reflecting the varying risk
associated with different asset types;
» To align our requirements to the
greatest degree possible with the other
governmental bodies who regulate this area;
and
» To make the requirements easy to calculate
and integrate into an issuer's capital
planning.
