Ginnie MBS Issuance Falls in Last Fiscal Quarter


Ginnie Mae MBS issuance fell in September for the third straight month, to the lowest level in a year and a half, according to a new report by the secondary market agency.

Ginnie issuers pooled $31 billion in government-backed loans in September, down 12% from August.

Overall, Ginnie Mae MBS issuance totaled $106 billion in the fourth quarter of fiscal year 2013, compared to $122 billion in the third quarter.

Issuance of single-family loans totaled $28 billion in September, down 17% from the prior month. This drop could reflect a decline in refinancings. It also could reflect the premium hike the Federal Housing Administration implemented in early June along with a policy that requires borrowers to pay annual premiums over the entire life of the loan.

Meanwhile, multifamily MBS issuance totaled $2.5 billion, up 30% from August.

Ginnie Mae also reported Tuesday reverse mortgage lenders securitized $662 million in FHA-insured HECMs in September, compared to $750 million in the prior month.

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