Monthly securitizations retreated at the Government National Mortgage Association. As jumbo issuance fell to a three-year low, reverse mortgage securitizations were the most in at least six years.
The aggregate unpaid principal balance of Ginnie Mae mortgage-backed securities outstanding as of Feb. 28 came to $1.9342 trillion, according to an analysis of monthly operational data.
Government-owned Ginnie’s book of business increased from $1.9242 trillion one month earlier. It has also expanded from 1.7982 trillion as of one year earlier.
Last month’s total was comprised of
$1.8242 trillion in residential MBS and $0.1100 trillion in multifamily securities. The residential portion included $0.0548 trillion in jumbo MBS and $0.0564 trillion in home-equity conversion mortgage MBS.
The $0.2843 trillion in MBS designated as Ginnie Mae I enables investors to be paid individually from MBS backed by residential and multifamily loans.
Another $1.6499 trillion in securities are designated as Ginnie Mae II, where investors are paid an aggregate principal and interest payment from a central paying agent. Ginnie II MBS are secured by residential loans.
Issuance of the Washington-based company’s MBS came to $33.220 billion last month, less than $36.406 billion in January. Issuance also dropped from $34.370 billion in
February 2017.
During the first-two months of 2018, MBS issuance amounted to $69.626, while the total came to $186.639 billion since Ginnie started fiscal-year 2018 on Oct. 1, 2017.
February 2018 MBS issuance consisted of $31.853 billion in residential loans and $1.367 billion in multifamily loans.
Last month’s residential issuance included $1.056 billion in jumbo mortgages — the slowest month since November 2014 when the total was $0.853 billion.
Also reflected in February’s residential MBS issuance was $1.471 billion in HMBS — the most on record based on the oldest data maintained by Mortgage Daily back to 2011. The surge was the result of a prospective borrowers rushing late last year to avoid an increase by the Federal Housing Administration in mortgage insurance premiums for HECMs.
