Ginnie Mae MBS Issuers Post Record Year

Ginnie Mae issuers securitized a record $418.1 billion in residential mortgages in fiscal year 2009 as lenders flocked to loan programs tied to the Federal Housing Administration and Veterans Administration. Overall, GNMA issuance rose by 55% compared to the prior fiscal year. (By comparison, Fannie Mae issued $612 billion in MBS through the first eight months of the year.) The Government National Mortgage Association ended fiscal 2009 (Sept. 30) guaranteeing $39.7 billion in mortgage-backed securities during the month. In August its volume was a bit higher at $44.2 billion. In the last two quarters alone the agency backed $247.7 billion in mortgage securities. Fannie and Freddie Mac securitize conventional mortgages. Ginnie Mae MBS are backed by FHA, VA and Rural Housing Service loans. FHA, which is in danger of falling below its minimum capital requirement, accounts for by far the largest portion of GNMA collateral.