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Multifamily MBS Volume Sets Record
by Ginnie Mae | 8/24/2020

The Ginnie Mae multifamily mortgage-backed securities (MBS) program is breaking records. Although most of the attention in the mortgage market is on single-family loan volume as mortgage rates achieve historic lows, owners of properties financed through Ginnie Mae multifamily MBS also are taking advantage of record-low rates to refinance their loans and strengthen their portfolios.

Production figures in the first 9 months of FY 2020 have already surpassed FY 2019 totals, with issuance of Ginnie Mae multifamily MBS hitting $23.1 billion between October 2019 and June 2020 compared to $18.4 billion for all of FY 2019.

 

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While low mortgage rates are essential to this trend, owners can take advantage of low rates because of products in the market that meet their needs. For example, in times of economic uncertainty, the FHA product of long term, fixed rate financing becomes more attractive to borrowers, lenders, and investors.

In addition, multifamily Issuers continue to find value across Ginnie Mae’s products that help them reduce the rate on mortgages within Ginnie Mae MBS. Ginnie Mae Issuers utilizing the Interest Rate Reduction product have seen an average interest rate decrease of approximately 69 bps.

The Ginnie Mae Multifamily MBS Program currently relies on 54 Issuers to service 14,692 pools with $126.3 billion in UPB. Most of these Issuers have enjoyed a longstanding relationship with Ginnie Mae and have helped grow UPB from $39.4 billion in December 2008 to $126.3 billion in June 2020, a 223% increase.

Growth in the program over the last 12 years has been critical to facilitating the construction and renovation of Multifamily housing such as apartment buildings, hospitals, nursing homes, and assisted-living facilities. Today, 28 of 54 Issuers service more than $1 billion in UPB, including 6 Issuers that service more than $5 billion in UPB.

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Laticia Jefferson
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Angel Hernandez
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Roy Hormuth
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Gregory A. Keith
Michael Drayne
Ginnie Mae
Michael R. Bright
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Last Modified: 3/23/2021 10:16 AM