“If we had a major economic downturn, I don’t know what kind of havoc we would have right now, because there’s no stability,” said Ted Tozer, a former president of Ginnie Mae.

Ginnie Mae Acting President Sam Valverde said loan-level securitization could help liquidity.

Ginnie issuers securitized $15.61 billion of refis through the Department of Veterans Affairs home loan program in the third quarter, a 68.5% increase from the prior period.

Ginnie Mae posted a 1.8% increase to finish the second quarter with $2.445 trillion in single-family MBS outstanding.

Purchase-money mortgages accounted for 82.5% of agency MBS issuance during August, though the refinance share is growing.

Securitization of FHA loans increased 6.3% to $22.09 billion in July, while VA production was up 11.4% to $15.44 billion.

Ginnie MBS issuance increased by 8.3% on a monthly basis in July while GSE volume declined somewhat.

Some $63.39 billion of MSR on Ginnie MBS were transferred in the second quarter of 2024, up from $24.22 billion in the prior period.

Halfway through 2024, Lakeview/Bayview Loan Servicing was the leader in removals from Ginnie MBS, with $11.33 billion.

Issuance of Ginnie Mae mortgage-backed securities rose 19.2% in the second quarter.