Recently I participated in a series of roundtable discussions sponsored by the Federal Home Loan Bank (FHLB) of Pittsburgh, which conducts roundtables throughout the year in Pennsylvania, West Virginia and Delaware. These roundtables are held to increase awareness about critical financial issues for local financial institutions and local policy makers.
The first roundtable was in Morgantown, W.Va., on February 21. I was joined by other experts and policymakers, including U.S. Sen. Joe Manchin of W. Va., a key member of the Senate Committee on Banking, Housing, and Urban Affairs.
I attended another roundtable in Wilmington, Del., on March 31. Joining me was Rep. John Carney, who represents Delaware in the U.S. House of Representatives, and who serves on the Capital Markets and Government Sponsored Enterprises Subcommittee of the House Financial Services Committee.
At both roundtables I gave a primer on Ginnie Mae’s business model and the important role we play in the secondary mortgage market and in affordable housing efforts. This was a key opportunity for me to lay out in detail Ginnie Mae’s impact on both the national and global economies to local and national leaders from West Virginia, Delaware and the FHLB of Pittsburgh. It was particularly important that Sen. Manchin and Rep. Carney participated, as both are influential voices in Washington, D.C., on issues of importance to Ginnie Mae.
I described our mortgage-backed securities (MBS) and how they are the only MBS backed by the full faith and credit of the U.S. government; I was also able to explain how we have no exposure to credit risk, the significance of our MBS guaranteed volume of $1.5 trillion and our monthly issuance rates. In addition, I discussed how our securitization process divides risk among credit enhancers and Issuers and investors.
These roundtables are extremely important to Ginnie Mae’s future as Congress will eventually take up legislation to address the government-sponsored enterprises. It seems likely that whatever legislation Congress passes will impact Ginnie Mae. By participating in these roundtables, which we hope will be conducted throughout the year by FHLBs across the country, we can describe for policymakers and leaders the importance of our role and ultimately have a voice in our future.