Some of the largest servicers of loans in Ginnie Mae mortgage-backed securities saw portfolios shrink in the first quarter, according to a new ranking and analysis by Inside FHA/VA Lending. (Includes four data tables.)

Servicers of government loans in Ginnie Mae mortgage-backed securities will need to ramp up buyout activity as delinquencies in their portfolios increase.

The delinquency rate on FHA-insured mortgage loans jumped nearly a percentage point during the fourth quarter of 2025 to surpass the reading at the end of 2020. (Includes four data tables.)

Borrower payoffs continued to make up the bulk of removals from Ginnie MBS. But the increase in third-quarter volume was led by FHA loan removals for delinquencies and foreclosures. (Includes two data tables.)

While most of the top Ginnie Mae servicers reported single-digit portfolio increases in the second quarter, United Wholesale Mortgage’s Ginnie servicing volume increased a whopping 87.8% year over year. (Includes three data tables.)

The delinquency rate on FHA loans in Ginnie MBS inched up at the end of the second quarter, with the share of seriously delinquent loans declining. The reading on VA loans past-due dropped. (Includes four data tables.)

Bulk transfers of mortgage servicing rights for loans held in Ginnie Mae mortgage-backed securities have gradually declined after peaking in the second quarter of 2024. (Includes two data tables.)

The House Veterans’ Affairs Committee forwarded a partial claims bill to Congress, but committee members warned that tens of thousands of veteran borrowers are facing foreclosure in the meantime.

The recent tightening of FHA loss-mitigation options will likely lead to more early loan buyouts, which PennyMac CEO David Spector sees, at the very least, as a net neutral development for the business.

Sharp staff cuts at FHA, VA and Ginnie Mae could lead to major problems for mortgage lenders and borrowers, according to analysts. But for now it appears to be business as usual for originations and servicing.