Fannie Leads Agency MBS Issuance Lower

Between the trio of government-controlled or owned organizations, issuance of fixed-rate mortgage-backed securities preliminarily came to $101.915 billion during September.

Securitizations declined from $114.650 billion the prior month. Activity also receded from $110.933 billion the same month last year.
Year-to-date MBS issuance stands at $877.242 billion.

Providing the details about issuance volume to Mortgage Daily was eMBS.

With $39.920 billion in fixed-rate issuance, volume at the Federal National Mortgage Association took the biggest dive from August: nineteen percent. Washington-based Fannie’s year-over-year business was down 11 percent. During the first-three quarters of 2018, Fannie’s issuance came to $356.263 billion.

A 7 percent decline from a month earlier left the Government National Mortgage Association’s securitizations at $33.939 billion. Washington-based Ginnie’s issuance tumbled more than 12 percent from a year earlier — the most of the trio. From Jan. 1, through the end of September, $294.151 billion in MBS were issued on behalf of Ginnie.

McLean, Virginia-based Freddie’s 4 percent month-over-month dip was the smallest of the group and left it with $28.056 billion in issuance. Securitizations on behalf of the Federal Home Loan Mortgage Corp. have increased more than 3 percent from the same month in 2017. During the eight month’s ended Sept. 30, Freddie Mac MBS issuance was $226.827 billion.

Freddie’s September securitization volume was $5.9 less than Ginnie’s, which works out to 17 percent lower. In fact Freddie’s volume has been 17 percent below Ginnie’s four out of the past six months.

But based on historical data from eMBS back to November 2004, that’s a far cry from the April 2017 peak, when Freddie’s issuance came up short of Ginnie’s by $14.7 billion, or 42 percent.