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| WASHINGTON, D.C. — Driven by hungry foreign investors, the Government National Mortgage Association said it has become one of the principal players in the securitization market as virtually all securitization of private lending has stopped. But even with surging volume, the company’s president said it has no plans to increase headcount.The previously obscure government organization made that declaration at a press briefing yesterday at its Washington, D.C. headquarters.
Ginnie Mae officials said its mortgage-backed securities market share has achieved dramatic growth — rising to 18.8 percent at the end of fiscal 2008 from 4.4 percent at the end of fiscal 2007. Issuance during the latest fiscal year, $220 billion, was 159 percent higher than in 2007, when Ginnie securitized $85 billion. And, for the first time in 20 years, Ginnie MBS issuances exceeded securitizations at both Fannie Mae and Freddie Mac. Ginnie saw $26.9 billion in November single-family MBS issuances, while October volume was $29.2 billion. Fannie’s issuances were $23.5 billion in November and $28.5 billion the prior month, while Freddie’s volume was $14.8 billion last month and $13.8 billion in October. Major issuers have told the government-owned corporation that it could represent more than 30 percent of their business by year’s end. Activity in loans insured by the Federal Housing Administration are driving the increasing volume. The number of FHA endorsements during fiscal 2008 — including purchases, refinances and reverse mortgages — more than doubled to 1.2 million from 0.5 million the prior year. But, while volume is booming, there are no plans to increase staffing.
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