Washington, D.C. -- Ginnie Mae reached another milestone in its Digital Collateral Program this month with the issuance of the first mortgage-backed security (MBS) backed by Digital Pools, which are pools consisting entirely and exclusively of eNotes. The MBS, which are composed of loans closed in December 2020, are issued as of January 1, and have coupon rates ranging from 2.50 percent to 3.50 percent. The aggregate principal value of the Digital Pools totaled approximately $24 million.

Director of Policy and Program Development Angel Hernandez, who has spearheaded Ginnie Mae’s Digital Collateral Program, said that “the issuance of securities backed by Digital Pools validates the viability of the securitization model outlined in our Digital Collateral Program and sets the foundation for broader and more rapid adoption of digital mortgages. This event is the culmination of efforts by numerous internal and external stakeholders in our digital initiatives, including Issuers, Document Custodians, warehouse lenders, technology providers and other industry partners.”

Ginnie Mae expects to see escalating levels of growth in the volume of eNotes securitized under its MBS Program for 2021.

About Ginnie Mae

Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the Department of Housing and Urban Development’s Office of Public and Indian Housing and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States government.

Ginnie Mae I MBS are modified pass-through mortgage-backed securities for which registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae I securities can include single-family, multifamily, manufactured home and project construction loans.

Ginnie Mae II MBS are modified pass-through mortgage-backed securities for which registered holders receive an aggregate principal and interest payment from a central paying agent. An Issuer may participate in the Ginnie Mae II MBS either by issuing custom, single-Issuer pools or through participation in the issuance of multiple-Issuer pools, which combine loans with similar characteristics.