Jumbo MBS Issuance Surges at Ginnie

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Mortgage securitizations improved for the fifth consecutive month at the Government National Mortgage Association. Jumbo activity rose to the highest level in a year and a half.

Issuers of Ginnie Mae mortgage-backed securities put out $31.471 billion in new transactions during August, according to operational data.

MBS volume for the Washington-based organization picked up from the previous month, when $29.159 billion in Ginnie MBS was issued.

The level of securitizations has increased every month since March, when issuers generated just $17.793 billion in new deals.

MBS issuance on behalf of the government-owned firm hasn’t been as strong as it was last month since August 2013, when volume was $35.301 billion.

During the eight months ended Aug. 31, there were $197.555 billion in issuances, while the total was $273.867 billion since Ginnie started its fiscal-year 2014 on Oct. 1, 2013.

The residential portion of last month’s MBS issuances was $29.829 billion, up from $27.377 billion in July. Residential issuances were $33.391 billion in August 2013.

August 2014’s residential activity included $0.908 billion in jumbo securitizations, more than the $0.736 billion in jumbo issuances during the prior month.

The last time jumbo activity was this strong was in February 2013, when $1.085 billion in jumbo MBS was issued.

Residential issuances also included $0.518 billion in home-equity conversion mortgage MBS, edging up from $0.507 billion in July.

Multifamily issuances, however, drifted down to $1.642 billion in August from $1.782 billion a month earlier and fell short of $1.910 billion a year earlier.

Year-to-date multifamily issuances amounted to $11.749 billion for calendar-year 2014, while the total was $16.203 billion for fiscal-year 2014.

Mortgage Expert

Mortgage Daily Staff



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