Ginnie Mae’s role in the fixed-income markets is stronger than it has ever been, with record-breaking MBS issuance in several of the past few months. Our outstanding mortgage-backed securities (MBS) have grown steadily, in parallel with the demand for affordable home financing as 30-year fixed-rate mortgage costs fell to levels never before seen. The Ginnie Mae MBS program is here for mortgage borrowers and investors through all market conditions, whether led by purchase mortgage activity or refinance mortgage volume. Consider the numbers: Over the past decade, the value of Ginnie Mae’s outstanding MBS doubled from $1.05 trillion at the end of fiscal year 2010 to $2.12 trillion at the end of fiscal year 2020.
The volume increase in outstanding MBS reflects an expansion of the portion guaranteed by the Department of Veterans Affairs (VA). The share of VA mortgages in new Ginnie Mae MBS has increased sharply over the past ten years, from 23 percent in 2011, to nearly 44% in 2020.
Ginnie Mae is committed to maintaining a strong MBS program built on a foundation of flexibility and reliability in order to meet the secondary market needs of the Issuers responsible for loans to veterans under the VA program, while also minimizing risks to taxpayers.