Ginnie Mae issuance slips month-to-month, gets higher year-over-year

Issuance of Ginnie Mae mortgage-backed securities slipped after several months of gains, but high volume still pushed the calendar year-to-date total for 2019 ahead of 2018’s full-year figure.

Ginnie Mae issuance in November totaled more than $56 billion compared to almost $34 billion in November 2018, but down from over $60 billion the previous month.

November’s issuance brings the 11-month total for calendar-year 2019 to over $469 billion. In 2018's entirety, issuance totaled a little over $416 billion.

The total for Ginnie Mae’s fiscal-year 2019, which ended Sept. 30, was also higher than the prior comparable period. The issuance total for FY 2019 was nearly $452 billion compared to almost $435 billion in FY 2018.

New securitization of Home Equity Conversion Mortgages, a subset of total issuance, was up year-over-year and month-over-month in November. HMBS issuance totaled $732 million during the month, compared to $642 million in October and $522 million in November 2018.

Multifamily securitizations represented more than 3% issuance in November. The majority of issuance continues to be backed primarily single-family home loans and to occur through the more flexible Ginnie Mae II program.

Issuance continues to outpace runoff in the Ginnie Mae market and in November the total outstanding volume of securities was more than $2.1 trillion, up from $2 trillion during the same month a year ago.

While Ginnie Mae’s monthly report does not routinely break out the percentage of securitized loans insured by the Department of Veterans Affairs from its total for traditional single-family issuance, a recent study revealed VA loans represented 42% of collateral in FY 2019.

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