WASHINGTON, D.C. – Fueled by a new user-friendly online process to create Ginnie Mae Platinum Securities and additional product offerings to the program, Platinum issuance volume surged in FY 18 with more than $20 billion of securities formed, helping to increase the liquidity in the Ginnie Mae mortgage-backed securities (MBS) market. Issuance volume was $7.8 billion it was in 2017.
The larger output comes as more sponsors are taking advantage of the improved automated process available through the MyGinnieMae portal, which enables participation from smaller firms with limited staff and large portfolio managers. MyGinnieMae is a single, secure gateway to all approved Ginnie Mae applications via a dedicated entry point. The portal is becoming a one-stop, full-service solution for accessing Ginnie Mae business applications, and is just one component of the technology modernization program underway at Ginnie Mae. Details of the modernization effort can be found in the Ginnie Mae 2020 white paper published earlier this year.
Supporting the operational aspect of multi-class Platinum Securities is another way for Ginnie Mae to increase liquidity and price stability for Ginnie Mae MBS and the government mortgage loan market that helps to ensure the lowest possible mortgage rates for homeowners across the country.
Ginnie Mae Platinum Securities contribute to this effort by allowing investors to combine Ginnie Mae MBS pools with uniform mortgage interest rates and original terms to maturity into a single security, backed by the full faith and credit of the United States government. Investors then receive a single payment from the combined securities every month, rather than separate payments from each individual security. Because it lowers administrative costs and improves liquidity, particularly for small pools, the Ginnie Mae Platinum Security is an attractive product. Ginnie Mae Platinum Securities can be used in structured finance transactions, repurchase transactions and general trading.
About Ginnie Mae
For the past 50 years, Ginnie Mae has provided Americans, including veterans, first-time homebuyers, and low- and moderate-income borrowers, the opportunity for homeownership. Ginnie Mae is a wholly-owned government corporation that attracts global capital into the housing finance system to support homeownership for millions of homeowners throughout the country. Ginnie Mae mortgage-backed securities (MBS) programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the HUD Office of Public and Indian Housing and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States government.