Ginnie Mae boosts America's affordable housingMortgagePress.commulti-family mortgage-backed securities, multi-family portfolio grew at double-digit rates
Ginnie Mae announced that
the multi-family mortgage-backed securities (MBS) program increased
by 7.4 percent in 2006, from $35.3 billion to $37.8 billion marking
the 13th year of growth in the organization's multi-family housing
program.
"At Ginnie Mae, we support affordable housing helping people
achieve homeownership and helping to maintain a strong supply of
affordable rental housing. Both are necessary if American families
are to have safe, decent places to live," said Robert M. Couch,
president of Ginnie Mae. "And we know that affordable rental
housing is often the first step on the ladder to
homeownership."
The Ginnie Mae multi-family portfolio continues to show strong
growth. Between 2002 and 2004, the multi-family portfolio grew at
double-digit rates, peaking in 2004.
Ginnie Mae's multi-family mortgage-backed securities programs
permit approved issuers to securitize project and construction
loans. Since 1971, Ginnie Mae has guaranteed more than $94 billion
in multi-family mortgage-backed securities financing affordable
multi-family housing units including apartment buildings, nursing
homes and assisted-living facilities. As with other Ginnie
Mae-guaranteed products, the guarantee of full and timely payments
of principal and interest on Ginnie Mae project loan securities is
backed by the full faith and credit of the United States.
Recently, Ginnie Mae expanded the program to include rural
housing multi-family properties (Section 538). However, FHA loans
are still the primary component of the multi-family program. Nearly
98 percent of all eligible FHA
multi-family loans are placed in Ginnie Mae securities.
Ginnie Mae has continued to streamline the multi-family program,
enhancing its efficiency as a securitization vehicle and making the
program more attractive to investors.
"Historically, Ginnie Mae has played an important role in
providing opportunities in the multi-family housing market," said
Ted Foster, senior vice president of mortgage-backed securities at
Ginnie Mae. "By promoting access to mortgage credit and enhancing
the liquidity of mortgage investment, Ginnie Mae has increased the
availability of affordable rental housing for millions of
Americans."
For more information, visit www.ginniemae.com">.
