MBS issuance totaled $423.4 billion, an increase of $68 billion compared to FY23. Ginnie Mae’s portfolio is primarily composed of securities backed by federally insured or guaranteed loans, including those issued through FHA, VA, and USDA programs. These loans are targeted toward supporting affordable housing for first-time homebuyers, servicemembers, and rural communities.
The Mortgage Bankers Association recently proposed a new Ginnie Mae Early-Buyout (EBO) securitization aimed at easing liquidity challenges for independent mortgage banks (IMBs) and other issuers. The initiative seeks to address long-standing financial pressures within Ginnie Mae’s program while reducing costs for borrowers.
The proposed EBO securitization would allow issuers to pool non-performing loans backed by agencies into a new security for sale to private investors. This would help issuers avoid the financial strain of holding delinquent loans, which they are currently required to buy out of Ginnie Mae pools.
Read more: EBO securitization: MBA’s answer to Ginnie Mae liquidity issues
Ginnie Mae’s portfolio growth directly contributed to supporting 1.2 million households nationwide in FY24, with a focus on underserved and rural communities. The agency’s role in providing liquidity to the housing market remains critical, particularly in addressing financing gaps for low- and moderate-income borrowers.