Ginnie Mae Reports Record Year of $1.184 Billion in Net Income

Ginnie Mae has reported that its fiscal year net income for 2011 reached a corporate highpoint of $1.184 billion, surpassing $541.5 million in FY 2010 and a previous high of $906 million in FY 2008. Revenues of $1.064 billion were up from $1.011 billion in 2010, while retained earnings rose to $15.7 billion from $14.6 billion. “Ginnie Mae has had a remarkable year; it’s our best yet,” said Ginnie Mae President Ted Tozer. “Our financial performance this fiscal year—despite a mortgage market still in turmoil—is a testament to our well-functioning business model. Our business is simple, our approach to risk-taking is conservative, and our ability to finance government-insured mortgages is helping to keep the housing market afloat.” As the private sector retreated in recent years, Ginnie Mae stepped in to help maintain the flow of capital from global markets to the nation’s housing markets, financing nearly 60 percent of all home purchases in FY 2011. The value security holders place on Ginnie Mae’s full faith and credit guaranty means that the corporation can ensure a consistent pool of funding for government mortgages. This supports the economic stabilization efforts of Congress and the Administration by making it possible for financial institutions to continue mortgage lending. “Ginnie Mae’s role and significance in U.S. housing finance is as strong as it has ever been,” said Ginnie Mae EVP Mary Kinney. “Since the onset of the credit crisis, Ginnie Mae has guaranteed $1.3 trillion, which financed about 4.8 million single-family homes and multifamily units for families across the country. Our ability to simultaneously attract private capital from the global capital markets and provide effective business solutions for MBS issuers keeps capital flowing into U.S. housing even during recessionary periods.”