WASHINGTON, D.C. – Ginnie Mae announced today that a record 65 Platinum securities transactions were completed in March 2021. In a typical month, between 19 and 22 Platinum transactions are executed. The March 2021 volume represents approximately $5.6 billion of business.
“March demonstrates the success of our Platinum Automation and expansion of the Platinum Product Suite & User base,” said Richard Perrelli, Ginnie Mae Product Manager for Multiclass securities.
Platinum demand was additionally bolstered by the effect near record-low interest rates had on MBS prepayment activity, which shrank the outstanding size of many Ginnie Mae MBS pools. Smaller pools are, all else equal, more expensive and time-consuming to administer. By combining smaller MBS securities into Platinum securities, investors increase operational efficiency and reduce costs.
About Ginnie Mae
Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the Department of Housing and Urban Development’s 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.