Ginnie Mae issuers divided their securitizations of fixed-rate single-family loans equally between Ginnie Mae I mortgage-backed securities and Ginnie Mae II MBS in 2004, according to the secondary-market agency."That is a big change," said Ginnie Mae executive vice president Michael Frenz. He noted that issuers used to place two-thirds of the single-family fixed-rated mortgages in Ginnie I's. "Now we are up to 50/50," he said. He pointed to the July 2003 decision to reduce the minimum servicing fee on Ginnie II MBS from 44 basis points to 19 bps as the "impetus" for the change in volumes. In 2004, issuers securitized $48.429 billion in single-family FRMs in Ginnie I's and $48.434 billion in Ginnie II's.

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