For the third consecutive month, Government National Mortgage Association issuance has increased. Overall residential and jumbo activity strengthened, while reverse mortgage and multifamily business weakened.
Total issuance of Ginnie Mae mortgage-backed securities was $26.221 billion during June.
Securitizations increased from the previous month, when volume was $25.406 billion. Volume has been up each month since March, when issuance was $17.793 billion.
But business at the Washington, D.C.-based company has slowed considerably compared to the $41.043 billion in issuances during the same month last year.
MBS issuance totaled $136.925 billion during the six months ended June 30. Since beginning its fiscal-year 2014 on Oct. 31, 2013, volume amounted to $213.237 billion.
Last month’s activity included $24.888 billion in residential activity, modestly more than $23.876 billion in May.
Residential issuances reflected $0.439 billion in home-equity conversion mortgage MBS, dropping from the prior month’s $0.582 billion. The decline followed an increase in HMBS issuance between April and May.
Jumbo MBS issuance, however, rose to $0.518 billion in June from $0.391 billion the previous month.
Multifamily MBS issuance came in at $1.333 billion, slipping from May’s $1.530 billion.
Government-owned Ginnie reported last month that the unpaid principal balance of its MBS portfolio has soared past $1.5 trillion.
“This extraordinary growth, increasing our portfolio of outstanding MBS over 30 percent in just the last four years, is evidence that Ginnie Mae’s guarantee is playing an increasing role in stabilizing the secondary market, which is crucial to the housing recovery and the overall economy,” Ginnie Mae President Ted Tozer said in the statement. “It took Ginnie Mae 42 years, from its founding in 1968, until July of 2010, to reach the $1 trillion mark. There are more than 9.1 million government-backed mortgage loans in the outstanding Ginnie Mae portfolio.”
