Ginnie Mae MBS Issuance Edges Down in July

Mortgage lenders issued $32 billion of Ginnie Mae MBS in July down almost 8% from June, according to new figures released by the secondary mortgage agency.

It marks the second consecutive monthly decline and comes at a time when commitments at Fannie Mae are strong.  However, Ginnie MBS issuance is up 16% from July 2011.

"Despite the slowly improving economy, Ginnie Mae's continued high level of issuance activity is still necessary to providing liquidity to the marketplace,” said Ginnie Mae president Ted Tozer. “This level of issuance clearly reflects the confidence our investors have in our mortgage-backed securities."

The new report shows that issuers securitized $24.8 billion of single-family mortgages in Ginnie Mae II pools and $4.9 billion in Ginnie I pools.   

Securitizations of jumbo mortgages totaled $846 billion, down from $1.02 billion in June. Federal Housing Administration lenders can originate jumbo loans of up to $729,750. Congress recently raised the VA loan limit to $729,750 from $625,500.  The Department of Veterans Affairs implemented the loan limit hike on Aug. 6.

FHA reverse mortgage lenders securitized $703 million in FHA-insured home equity conversion mortgages, down from $795 million in May.

Multifamily issuance totaled $1.65 billion in July, compared to $1.42 billion in the month prior.

Ginnie Mae guarantees MBS backed by Federal Housing Administration, Department of Veterans Affairs, and Rural Housing Service loans.