Ginnie Mae mortgage-backed securities (MBS) issuance volume was $76.92 billion in February, down from the record $82.6 billion issued in January. Issuance is fueled by across-the-board demand for government-backed mortgages as consumers increase home refinance and home purchase volume during this period of historically low interest rates. Approximately 274,787 homes and apartment units were financed by Ginnie Mae guaranteed MBS in February.
“Traditional 30-year mortgage rates have increased in recent weeks, but remain historically affordable,” said Ginnie Mae Acting Executive Vice President, Michael Drayne. “Low mortgage rates combined with strong consumer demand for the mortgage programs of our federal insuring and guaranteeing partners continue to drive home purchase and mortgage refinancing, and fuel MBS issuance and investment.”
A breakdown of February issuance of $76.92 billion includes $72.21 billion of Ginnie Mae II MBS and $4.71 billion of Ginnie Mae I MBS, which includes $4.61 billion of loans for multifamily housing.
Ginnie Mae’s total outstanding principal balance as of February 28 was $2.11 trillion, flat with $2.11 trillion in January, and down slightly from the February 2020 level of $2.14 trillion.
For more information on monthly MBS issuance, UPB balance, REMIC monthly issuance and global market analysis visit Ginnie Mae Disclosure.
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.