Ginnie Mae President Alanna McCargo said nonbank liquidity is the biggest challenge facing the government mortgage system.

The House is seeking lower funding levels for HUD and a September deadline is fast approaching.

The uptick was more pronounced for FHA mortgages.

The total delinquency rate on agency MBS hit 2.60% at the end of June.

Ginnie issuance increased by 33.7% on a quarterly basis in the second quarter.

The budget proposal would eliminate several HUD programs and makes deep cuts to others.

The GSEs outpaced Ginnie in terms of growth in MBS issuance in the second quarter.

The correspondent channel captured 49.1% of originations in the first quarter, up from a 47.3% share in the previous quarter.

The existing partial claim option isn’t effective because interest rates are so much higher now than when most FHA borrowers signed their present mortgage, analysts at the Urban Institute noted.

Ginnie Mae MBS issuance increased by 3.3% on a monthly basis in May.