Ginnie Mae’s mortgage securities rise to a high last seen in 2016


The more than $44 billion in new Ginnie Mae mortgage-backed securities that came to market in June marked the strongest month for the government bond insurer in more than two years.

Issuance of single-family and multifamily securities combined at Ginnie Mae also was almost 20% higher than June 2018, and more than 11% higher on a consecutive month basis.

Ginnie issuance

Total issuance for the first half of the 2019 calendar year remains slightly lower than during the same period in 2018. But in May and June, monthly issuance figures have been higher.

Increased issuance of traditional single-family mortgage-backed securities has driven the year-over-year increase. Multiple issuer pools, which represent the bulk of the volume in the single-family market, totaled more than $34 billion in June. Issuance in this category hasn’t been that high since August of 2017.

At almost $6.6 billion, issuance of fixed-rate, custom single-family pools in June was almost 25% higher than a year ago, but was almost 4% lower than it was the previous month.

Reverse mortgage securitizations that Ginnie Mae insures were lower on a year-over-year and a consecutive-month basis.

Newly securitized Home Equity Conversion Mortgages totaled just $561 billion in June, down more than 42% from the same month a year ago and more than 34% from the previous month.

One midsized HMBS issuer, Live Well Financial, abruptly stopped funding loans in early May due to a “material” decline in the fair market value of bonds securing some of its financing, according to bankruptcy court documents.

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