Advertiser Disclosure

advertising disclaimer
Skip to main content

Ginnie Mae Sets New Record: $63.81 Billion Mortgage-Backed Securities Issued in April

[Updated: Dec 11, 2020 ] May 13, 2020 by Liz Brumer
Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

*By submitting your email you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

Earlier in March, Ginnie Mae, a government-owned corporation that guarantees specific mortgage backed-securities (MBSs), announced they would be stepping in to help servicing companies float mortgage payments for qualified loans in forbearance. This includes loans issued by the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), the Department of Housing and Urban Development’s (HUD) Office of Public and Indian Housing, and the Department of Agriculture Rural Housing Service (USDA).

Their efforts are not going unnoticed. A press release issued by Ginnie Mae on May 8 stated the corporation broke a new record for MBS issuance in April 2020, creating $63.81 billion in MBSs and helping more than 246,000 homeowners and renters with financing assistance. This record-breaking issuance of MBSs increased their total outstanding principal balance for all MBS to $2.149 trillion, an $87 billion increase from April of 2019.

Ginnie Mae currently guarantees MBSs through two entities:

  • Ginnie Mae I MBS, in which security holders receive separate principal and interest payments on each of their certificates secured by single-family, multifamily, and manufactured homes and construction loans.
  • Ginnie Mae II MBS, where security holders receive an aggregate of principal and interest payments from a central paying agent.

April's issuance was comprised of "$61.04 billion of Ginnie Mae II MBS and $2.78 billion of Ginnie Mae I MBS, which included $2.48 billion of loans for multifamily housing," according to the press release.

Why It Matters

This continued issuance of MBSs by Ginnie Mae is helping the markets continue to operate as normal, allowing for new securities to be purchased and backing loans for security holders in a time of uncertainty plagued by high liquidity concerns for lending institutions and servicing companies.

The "Unfair Advantages" of Real Estate Just Got a Whole Lot Better

Investing in real estate has always been one of the most effective paths to financial independence. That's because it offers incredible returns and even more incredible tax breaks.

These benefits weren't enough for Uncle Sam, though, as a new tax loophole now allows those prudent investors who act today to lock in decades of tax-free returns. We've put together a comprehensive tax guide that details how you can benefit from this once-in-a-generation investment opportunity. Simply click here to get your free copy.

The Motley Fool has a disclosure policy.