Aside from an up tick in reverse mortgage and multifamily activity, issuance of Government National Mortgage Association securities slowed last month. An overhaul of document custody policies is planned.
Ginnie Mae issuers securitized $41.662 billion in mortgage-backed securities during the month of May, according to operational data.
MBS issuance at the Washington-based firm retreated slightly compared to a month earlier, when volume totaled $42.340 billion.
But issuance activity made a healthy gain over the same month last year, when MBS issuance was $25.406 billion.
From Jan. 1 through May 31 of this year, MBS issuance at the government-owned company amounted to $169.643 billion.
Since Ginnie began its fiscal-year 2015 on Oct. 1, 2014, securitizations totaled $257.296 billion.
May 2015 issuance included $39.363 billion in residential MBS, dipping from $40.553 billion a month earlier but well above $23.876 billion a year earlier.
Included in the latest residential activity was $1.666 billion in
jumbo mortgages, off from $1.719 billion in April.
But issuance of home-equity conversion mortgage MBS increased to $0.874 billion last month from $0.798 billion.
Ginnie multifamily MBS issuance also rose, to $2.299 billion from $1.787 billion.
An announcement Thursday from
Ginnie indicated that it plans to reform its document custody policies in order to enhance its risk program.
Issuers, document custodians and other stakeholders will be engaged in a dialogue about how to best update program requirements and infrastructure relating to pool collateral.
“Every one of the nine million loans in Ginnie Mae pools is secured by a collateral loan file,” Ginnie Mae Senior Vice President of Issuer and Portfolio Management Michael Drayne said in a news release. “As our business has grown, and the ownership of so many of the underlying MSRs has changed hands since the financial crisis, it has become even more critical to ensure that our program for managing this documentation evolves to meet changing circumstances and take advantage of technological progress.”
