Ginnie Mae Surges to $3 Billion Jumbo Loan Securitizations in Four Months

Lenders Seek Government Security Ginnie Mae Provides Washington, DC The Government National Mortgage Association (Ginnie Mae) announced that securitization of Federal Housing Administration (FHA) jumbo loans soared past $2.9 billion in only four months of issuance. This is the highest rate of issuance among all Agency Mortgage-Backed Securities (MBS) issuers. In April, Ginnie Mae demonstrated its support for the president's economic stimulus package by immediately adding a new multiple-issuer security under the Ginnie Mae II MBS program to accommodate jumbo loans. "In this market, we are seeing more and more issuers return to Ginnie Mae for its safety and stability," said Joseph J. Murin, president of Ginnie Mae. "This new security will enable more borrowers to qualify for safe, affordable FHA-insured loans, helping them to avoid foreclosure. This is critically important as the mortgage industry and Americans continue to navigate the ongoing market turmoil." The Economic Stimulus Act of 2008 allowed FHA to raise its loan limits from $362,790 to $729,750 in some areas of the country. While the increase is only temporary and will expire December 31, 2008, it has had a major impact. In the four months since Ginnie Mae rolled out this new product, issuers have securitized $17 million in April, $331 million in May, $1.089 billion in June, and $1.470 billion in July of FHA's jumbo loans. Ginnie Mae was created in 1968 to expand access to affordable housing opportunities by linking global capital markets to the nation's housing markets, guaranteeing more than $2.6 trillion in MBS, and helping millions of low- and moderate-income Americans achieve their dream of homeownership.