The purpose of this memorandum is to address market concerns regarding the present and future status of Ginnie Mae’s Single-Family Mortgage-Backed Securities (MBS) Programs. The Office of Capital Markets has engaged market participants in public and private forums to explore opportunities to improve liquidity in the marketplace. During these sessions, we’ve asked some difficult questions which included conversion and sunset options. This effort was strictly exploratory and has not yielded any decisions. Unfortunately, speculation that Ginnie Mae was planning to announce a sunset to the Ginnie Mae I Single-Family Program has led to this week’s decay in G2/GN price spreads. This speculation is not warranted.

As we continue our communications with market participants, we seek to ask and answer questions and solicit feedback as we examine options to maintain liquidity and modernize the MBS Programs. This effort does not signify any decision that would lead to market disruption. Any future announcement will be made in conjunction with stakeholders to minimize volatility in the MBS market.

Should you have any questions, please direct them to the Office of Capital Markets staff: John Getchis (202-475-8855) or George Rose (202-475-4924).