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Ginnie In Brief

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by Ginnie Mae | 12/20/2018

2018 capped a remarkable decade of growth for Ginnie Mae. We reached $2 trillion in outstanding mortgage-backed securities (MBS), which represents considerable growth from less than $427.6 billion in 2007. Our role in the mortgage market continued to grow, and in 2018 we served nearly 1.9 million American households, and celebrated our 50th anniversary of providing capital to the housing market to help more Americans achieve the goal of homeownership through government lending programs. In our 2018 Annual Report, we take a look back at our accomplishments in the past fiscal year. These include:

Growing our relationships with our largest investors, both long-time and newcomers. We have recognized the importance of finding new, dedicated investors across the globe. The top four countries investing in Ginnie Mae in 2018, based on estimated value of Ginnie Mae holdings among investors from those nations, were Taiwan, Japan, China and Ireland.

Focusing on the intersection of investor and borrower needs, while also protecting taxpayers. Our commitment to this mission led to our decision to sanction a small group of Issuers whose loan performance damaged the integrity of our securities and our ability to effectively serve American homeowners. We have not hesitated to police our program in order to provide the best possible mortgage rate to consumers and a market-predictable MBS to our investors. Monitoring the performance of our security is now part of the routine business of Ginnie Mae, and additional steps can be expected throughout the next year.

Strategically investing in technology and process redesign. Early in 2018, we successfully completed our first three waves of IT infrastructure migration from our pool processing agent to a government SmartCloud. During the year we also announced our commitment to modifying the MBS program to permit the inclusion of mortgages that exist only in digital form, an initiative that will be shaped into a pilot program in 2019. We will continue to invest in technology in the upcoming fiscal year, making enhancements outlined in our June 2018 white paper “Ginnie Mae 2020.”

Responding proactively to the fact that more and more of our Issuers are independent nonbank mortgage lenders. These groups are often efficient at mortgage servicing, but are not subject to federal safety and soundness regulations. This reality requires Ginnie Mae to focus on ensuring the strength and liquidity of our partners and the mortgage market that we serve. To that end, we evolved our approach to counterparty risk management in 2018, and we will take additional steps in 2019 and beyond.

As elected officials continue to debate how best to reform the broader U.S. housing market, Ginnie Mae has and will continue to provide insight on the relevant aspects of administering an explicit government guaranty. Meanwhile, in the new year we’ll continue to do our part to ensure that secondary market capital flows to a safe, liquid and accessible residential mortgage market.

Read Ginnie Mae’s 2018 Annual Report.

Modernizing the Ginnie Mae MBS Program and Platform
by Ginnie Mae | 12/10/2018

To keep pace with the dynamic mortgage market, Ginnie Mae is committed to modernizing its technology in order to deliver a better and safer experience for all participants in the Ginnie Mae program. Advancements already underway to Ginnie Mae’s technology and systems are enabling us to more effectively securitize mortgages, disseminate data, increase efficiency and, ultimately, ensure the stability of Ginnie Mae’s MBS program. In the above video, Ginnie Mae’s EVP and COO Michael Bright and EVP Maren Kasper outline the roadmap for becoming the industry leader in technology and innovation.

To further your understanding of how Ginnie Mae is modernizing its platform, read Pillar I of the Ginnie Mae 2020 report.

by Ginnie Mae | 10/5/2018

Millions of low- and moderate-income, rural, urban and veteran homeowners rely on loans made possible by Ginnie Mae’s mortgage-backed securities (MBS). Our robust and reliable process for ensuring the timely payment of principal and interest to security holders has enabled us to never miss a payment since our founding in 1968. And over the past 10 years, that business model has been one reason for the tremendous growth we’ve experienced.

The charts below illustrate how momentous the past decade has been for Ginnie Mae.


by Ginnie Mae | 9/13/2018

All segments of the U.S. housing market are going strong, including the multifamily sector where construction of new apartments hovers near a recent peak. However, many of the new apartments being built are too expensive for low- and moderate-income renters. That’s why it’s important for Ginnie Mae’s multifamily MBS program to continue its role as a source of mortgage capital for developers and owners. These groups are building new and refinancing existing apartments that are home to low- and moderate-income families.

While primarily known for financing homeownership, Ginnie Mae’s MBS programs also support mortgage lending for qualifying apartment buildings. For example, in August, $1.53 billion of Ginnie Mae MBS were issued to finance multifamily housing and more than $16.5 billion were issued for the fiscal year through August 31.

Ginnie Mae’s MBS guarantee works in tandem with mortgage insurance from the Federal Housing Administration to attract lenders and investors to the multifamily mortgage market. By working together, FHA and Ginnie Mae help lower the cost of mortgage loans to construct new or rehabilitate existing rental housing affordable for low- and moderate-income consumers. Those lower-cost mortgage loans lead to reduced construction and rehab costs and, ultimately, more affordable rents for families.

The need for affordable rental housing is great. According to data from the Joint Center for Housing Studies at Harvard University, nearly half of renters in the U.S are cost-burdened, meaning that their rent payments exceed 30 percent of their gross income.

For decades, Ginnie Mae has helped to finance affordable rental housing, and the cumulative extent of its efforts is significant. Since issuing its first multifamily MBS in 1971, Ginnie Mae has guaranteed more than $290 billion of multifamily MBS.

Because of participation in the Ginnie Mae multifamily MBS program from more than 60 large and small lenders across the U.S., families are able to afford quality rental housing.

by Ginnie Mae | 5/21/2018

​Ginnie Mae finances America. For 50 years Ginnie Mae has brought global capital to the U.S. housing finance market at minimal risk to the U.S. taxpayer. We've provided the liquidity and stability that helps millions of veterans and low- and moderate- income households find affordable homes.

Who Does Ginnie Mae Finance Infographic

Last Modified: 6/22/2018 7:24 PM