Washington, D.C. – Ginnie Mae today reported Fiscal (FY) 2013 revenues of $1.225 billion, down slightly from $1.246 billion in 2012. Net income reached $628.4 million in FY 2013, up from FY 2012 net income of $609.6 million. Retained earnings continued to grow, rising to nearly $17.0 billion from $16.4 billion. Ginnie Mae guaranteed $460.4 billion in mortgage-backed securities (MBS) in FY 2013, the highest rate of issuance in the corporation’s 45-year history. The corporation has an outstanding MBS balance of $1.457 trillion.
“Ginnie Mae continues to provide stability to the secondary mortgage market while generating profits for the U.S. Government, and this year was no exception,” said Ginnie Mae President Ted Tozer. “Demand for government loans remained strong. We issued more MBS than at any other time in Ginnie Mae history, with an increase of 18.6 percent from FY 2012.
“Operating at no cost to the U.S. Government, Ginnie Mae’s approach to risk-taking remains conservative but effective – thereby minimizing risk to the U.S. taxpayer,” Tozer added. “Our sound financial performance is a testament to our simple business model and skillful risk management practices. Ginnie Mae is a perfect example of a public-private partnership.”
Ginnie Mae has been instrumental in maintaining the flow of global capital to the nation’s housing market.
“Ginnie Mae serves a vital role in the U.S. housing finance system – a system that runs through the core of our nation’s economy,” said Executive Vice President and Chief Operating Officer Mary Kinney. “Our consistently solid financial results demonstrate Ginnie Mae’s position as a source of strength for the industry. And we are building for our future by improving and enhancing our securitization platform to meet the needs of our Issuers and investors.”
Ginnie Mae raises capital from investors in the global credit markets to ensure liquidity for affordable rental and homeownership opportunities across the country. Investors place a premium value on Ginnie Mae’s full faith and credit guaranty, which helps ensure that the corporation can maintain a consistent pool of funding for government mortgages. Ginnie Mae’s role in the secondary market supports the economic stabilization efforts of Congress and the Administration by making it possible for financial institutions to continue mortgage lending.
Through its MBS, Ginnie Mae finances housing mortgage insurance programs run by the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), the Office of Public and Indian Housing (PIH) and the Department of Agriculture’s Rural Development Housing and Community Facilities Program (RD).