Both the FHA and VA programs saw increases, but the bulk of the growth in Ginnie issuance in the third quarter came from FHA loans.

Lending tied to the GSEs will largely carry on as usual though government-insured business could face some difficulties during a government shutdown.

Brokers saw the biggest sequential increase in FHA/VA business, with volume up 59.1% from the first quarter to $13.35 billion.

“It’s taking us a little longer to get this done, but at the same time, we want to get it right,” Michelle Corridon, deputy director of policy at VA, said of the VA Servicing Purchase program.

Some $36.47 billion of Ginnie MBS was issued in August, essentially level compared with July.

The VA said the program was being developed within its existing regulatory authority, which means the Administrative Procedures Act would not apply.

Many smaller lenders can’t access the Ginnie platform because its eligibility standards require issuers to have “huge volumes,” Ginnie President Alanna McCargo noted.

The uptick was more pronounced for FHA mortgages.

Ginnie issuance increased by 33.7% on a quarterly basis 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.