The Government National Mortgage Association guaranteed roughly $34 billion of MBS in August, as the FHA/VA market remained strong, particularly for buyers of new and existing homes.
Based on the August run-rate, GNMA could wind up issuing guarantees on $408 billion of bonds this year.
Although the August volume was in line with previous months, compared to the same month a year ago, guarantees declined by 24%.
"While the economy is slowly showing signs of recovery, much of this improvement would not be possible without the stabilizing effect of the Ginnie Mae MBS," said Theodore Tozer, the agency's president.
The issuance numbers include guarantees on Ginnie Mae I and II single-family pools, reverse loans, and multifamily. Single-family accounts for a large majority of the coverage.
In 2009 the agency guaranteed a record $454 billion of bonds compared to $270 billion the year prior. In July the agency's portfolio topped $1 trillion for the first time ever and now accounts for 10% of all outstanding home mortgages in the U.S.
