Ginnie Mae Issuance Drops to $46.5 Billion in September as Portfolio Reaches $3.03 Trillion

Ginnie Mae issued $46.52 billion of mortgage-backed securities in September, the government-owned company said in a press release on Tuesday, Oct. 13. Its outstanding portfolio grew by a net $20.92 billion to $3.03 trillion.

Why this matters: Ginnie Mae guarantees securities backed by FHA, VA and USDA home loans. Monthly issuance is a direct read on how many government-backed loans lenders are closing and selling, so a drop shows up here before it appears in many other reports.

Chart: Ginnie Mae total monthly MBS issuance, from its monthly portfolio releases. Chart by mortgage.news using only the figures cited in this article.

How September compares

Ginnie Mae's own press releases show issuance of $53.9 billion in June, $53.1 billion in July and $52.14 billion in August. September's $46.52 billion is about 11% below August. Ginnie Mae did not give a reason for the decline in its release.

Net portfolio growth was $20.92 billion in September, compared with $24.46 billion in August and $20.5 billion in July. The portfolio keeps growing because new issuance still exceeds loans paying off, though higher rates have slowed both purchases and refinancing.

Where the money went

• $44.39 billion in Ginnie Mae II securities, the program that carries most single-family FHA and VA loans.
• $2.12 billion in Ginnie Mae I securities, including $2.09 billion for multifamily housing loans.
• Loans for more than 134,091 households, according to the release.

A labeling problem with one number

The September release says Ginnie Mae securitized 62,891 first-time homebuyer loans "year to date," and also lists 62,891 first-time buyers among September's households. The August release reported 478,434 first-time buyer loans year to date, and the July release reported 408,854. The 62,891 figure therefore appears to be a September monthly count rather than a year-to-date total. Ginnie Mae had not clarified the label when this article was published, so treat that figure with care.

Context from this week

The release came as Ginnie Mae President Joseph Gormley, who is also acting FHA commissioner, spoke at the Mortgage Bankers Association's annual convention in Chicago. On the same day, Ginnie Mae also announced a listening session on version 4.0 of its single-family pool delivery data set, a technical change for the lenders that issue its securities.

What it means

For lenders who sell FHA and VA loans, a lighter month of issuance is consistent with weaker government-loan demand as rates rose. For borrowers, Ginnie Mae issuance does not set the rate on any loan, but it reflects how much government-backed lending is moving through the market. One month is not a trend, and October data will show whether the slowdown continues.

The takeaway: Government-backed lending slowed in September while the total pool of Ginnie Mae securities kept growing past $3 trillion.