Ginnie Mae reported net income of $541.5 million in fiscal year 2010, a 6% gain from the prior year, while revenues jumped 54%.
Ginnie Mae president Ted Tozer said the agency increased its loan loss reserves to $1 billion, up from $560 billion in FY 2009.
"We believe this increased provision is more than sufficient to offset losses on servicing portfolios taken over by Ginnie Mae due to issuer defaults," Tozer said.
The secondary market agency reached a milestone in FY 2010, which ended September 30, when its portfolio of outstanding MBS hit $1 trillion in July and ended the year at $1.1 trillion.
Ginnie guaranteed $413 billion of MBS in FY 2010, down slightly from the record of $418 billion set the prior year. (All the figures were released in its annual report published Tuesday.)
Ginnie's rapidly growing MBS portfolio generated $567.8 million in guarantee fees, a 30% gain from FY 2009. Total revenues for the agency exceeded $1 billion.
Operating expenses increased 34% to $92.5 million or 9% of total revenues. "Management exercised prudent expense control," the annual report says. Expenses in FY 2009 were 9% of total revenues.
