Ginnie Securities Issuance Sets New Annual Record

Ginnie Mae issuance of single-family and multifamily mortgage-backed securities hit a record $414 billion in 2009, up 53% from the previous calendar year. The secondary market agency ended the year on a strong note, as MBS issuance jumped to $42.5 billion in December, up from $35.5 billion in November. The Ginnie MBS issuance topped $46 billion in July, which is a single-month record for the agency. Most of Ginnie MBS is backed by Federal Housing Administration single-family loans — only $6.8 billion of the Ginnie MBS issued in 2009 involved multifamily loans guaranteed by FHA, as well as single family loans originated through the Department of Veterans Affairs and U.S. Department of Agriculture Rural Housing Service programs. Outstanding Ginnie Mae MBS has a 3.25% default rate as of Nov. 30, 2009. The percentage of FHA-insured single-family loans that are 90-days or more past due hit 8.94% in November.