Ginnie Mae Reports Continued Profits, But Earnings Fall 48%

Ginnie Mae today reported net income of $609.6 million in fiscal year 2012, down 48% from $1.184 billion in the previous fiscal year. Revenues saw an increase of 17%, from $1.064 billion in 2011 to $1.246 billion in 2012.

The securitization body for Home Equity Conversion Mortgages counted 11 HECM mortgage-backed securities issuers in its annual report with $36.9 billion in remaining principal balance in its HMBS portfolio. This compares to a total outstanding MBS balance of $1.34 trillion, Ginnie Mae reported.

“Ginnie Mae has once again had a successful year, generating a profit for the U.S. Government for more than twenty consecutive years, clearly proving that our business model and securitization platform work effectively for American taxpayers,” said Ginnie Mae President Ted Tozer. “Our lower net income in FY 2012 is attributed to an increase in provisions for losses, which is part of our risk management approach and demonstrates another way that we protect the American taxpayer.”

Advertisement

Housing markets continue to benefit from Ginnie’s role in the market, its executives reported, counting more than $1 trillion in liquidity offered since the housing crisis.

“Ginnie Mae’s unique securitization platform has allowed us to deliver nearly $1.7 trillion of liquidity into the U.S. housing mortgage finance market since the crisis began, providing homeownership and housing opportunities for more than 6.3 million households,” said Executive Vice President Mary Kinney. “This success also clearly demonstrates the importance of the countercyclical nature of our business, allowing Ginnie Mae to step up when the private market retreats.”

Written by Elizabeth Ecker

string(104) "https://reversemortgagedaily.com/2012/11/15/ginnie-mae-reports-continued-profits-revenues-up-17-in-2012/"

Share your opinion