Agency sets record with $2.64 trillion mortgage portfolio
Ginnie Mae has published its 2024 financial report, revealing a $423.4 billion increase in mortgage-backed securities (MBS) issuance, pushing the agency’s outstanding portfolio to a record $2.64 trillion.
The agency reported $3.1 billion in operational results for fiscal year 24, including a $1.3 billion contribution to the federal government. These figures reflect strong financial management, despite broader economic challenges.
Loan delinquencies improved, with the overall delinquency rate falling to 1.57% at the close of FY24, compared to 1.87% the previous year. Ginnie Mae attributed this trend to effective risk management practices and an improving economic environment. However, the report noted that challenges remain, particularly in addressing the affordability crisis in housing.
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.
“Once again, our fiscal year results demonstrate Ginnie Mae’s ability to provide consistent access to affordable credit throughout all market cycles while delivering value to taxpayers,” Ginnie Mae chief risk officer Gregory Keith said in the report. “In generating $3.1 billion net financial impact, including supporting 1.2 million households, Ginnie Mae proved how impactful our business can be in strengthening the housing finance market while generating superior financial results. Perhaps more amazing is that Ginnie Mae accomplishes this mission with fewer than 300 employees.”
“For five consecutive years, Ginnie Mae has maintained an unmodified audit opinion— an extraordinary achievement for a small agency managing such a large portfolio,” added Erica Johnson, director and audit liaison officer. “Our robust internal controls and modernization initiatives enable us to adapt to evolving market conditions, maintain transparency, and ensure we remain well-prepared to meet future challenges.”
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