Building a more equitable housing finance system has long been at the forefront of our mission here at Ginnie Mae. That’s why I’m excited to announce that as part of the Department of Housing and Urban Development (HUD)’s strategic plan for Fiscal Years 2022-2026, Ginnie Mae will have a direct role in spearheading the agency’s objective to create a more inclusive American housing finance system through new policies, programs and modernization initiatives. Having Ginnie Mae explicitly linked to Secretary Fudge’s strategic outlook for HUD is an historic moment for the agency, and I am proud to lead us forward in achieving this set of goals.
As part of the Biden-Harris Administration’s far-reaching goal to redress the nation’s long history of discriminatory housing practices and reaffirm their commitment to end housing discrimination, HUD and Ginnie Mae will work to reach communities that are historically disadvantaged in the American housing market.
HUD’s plan outlines critical goals to increase access to affordable housing finance options for underserved communities, expand links to global capital markets, enhance the value of Ginnie Mae securities and modernize our mortgage-backed securities platform. We are excited that these goals will now be at the center of HUD’s vision for the future and look forward to working closely with the agency and key stakeholders to meet these objectives in the coming years.
Together with HUD, Ginnie Mae will develop new avenues to support affordable housing finance by focusing on individuals and families who traditionally have difficulty accessing Federal housing credit programs. This work will include engaging with non-traditional lenders, including community-based institutions, to directly reach communities and individuals where they are already financially active. We will also explore new models where our liquidity can have an impact, including risk sharing in HUD’s multifamily program and expansion of programs that can create liquidity and improve access to credit and the capital markets.
To increase ease of access for these programs, we are also committed to modernizing Ginnie Mae’s technology and operations platforms, with planned upgrades to ensure efficient and secure delivery of our mortgage-backed securities and advance digital innovation in our MBS program and the mortgage ecosystem as a whole. In an optimized digital environment, all stakeholders including the households our programs serve will have more efficient and streamlined access.
As a national leader in financing affordable and first-time homeownership, Ginnie Mae and our securitization programs are vital to establishing greater equity in the housing market. By enhancing the value of our mortgage-backed securities through expanded data on Environmental, Social and Governance (ESG) disclosures and implementing new methods of attracting global capital into the American housing finance system, we can ensure that our MBS and programs remain attractive to the global investment community.
Shaping the future of housing in America through these objectives will require input and involvement from the entire federal housing environment and close collaboration across the mortgage industry. Together with our federal and other guaranteeing partners, the Biden-Harris Administration, and HUD, we will work to ensure that the housing finance system operates more cohesively and efficiently for all involved. By expanding and facilitating access to affordable housing programs, we can secure a future where more families are able to enjoy the safety and security that comes from housing.
You can find more information on these plans here and be sure to subscribe and follow us on social media for more details and progress updates.
About the Author
Alanna McCargo is the 18th President of Ginnie Mae. She previously served as Senior Advisor for Housing Finance for HUD Secretary Marcia Fudge and has spent over two decades working in housing finance and affordable housing policy. She was Vice President of the Housing Finance Policy Center at the Urban Institute and held senior leadership roles at Fannie Mae and JP Morgan Chase. Her full bio can be found here.