The Government National Mortgage Association said it guaranteed more than $25.4 billion in mortgage backed securities in May.
Lenders issued over $17.53 billion of Ginnie Mae II single family pools and $5.54 billion Ginnie Mae I single-family pools.
Reverse mortgage lenders issued $771 million of HMBS product during the month, down from $1.029 billion in April.
“The consistent performance of the Ginnie Mae MBS over the last several months has been very important to the secondary market as the economy continues to rebound,” said Ginnie Mae President Ted Tozer. “Issuers depend upon the strong pricing and execution of the Ginnie Mae MBS as a way to maintain the flow of capital for new mortgage loans, and investors depend upon the security of guaranteed timely interest and principal payments.”
In other Ginnie Mae news, the agency recently changed the servicing compensation structure. Effective for HMBS starting July 1, 2011, issuers must select a servicing fee margin of at least 36 bps and no more than 150 bps, which includes Ginnie Mae’s guaranty fee of 6 bps.