This week, Ginnie Mae, the federal agency overseeing the secondary mortgage market and offering mortgage guarantees, unveiled its financial report for fiscal year 2024, showcasing noteworthy achievements.
Impact on Households
The report reveals that Ginnie Mae’s mortgage-backed securities (MBS) program has positively impacted around 1.2 million households nationwide, including servicemembers, veterans, and first-time homebuyers living in diverse areas—ranging from bustling cities to rural and Tribal communities.
In fiscal year 2024, Ginnie Mae’s total gross issuance of MBS soared to $423.4 billion, elevating the agency’s total outstanding portfolio to an astonishing $2.64 trillion.
Such impressive figures translated into $3.1 billion in operational outcomes, with a direct contribution of $1.3 billion to the federal government’s coffers.
Leadership Insights
Gregory Keith, Ginnie Mae’s senior vice president and interim chief risk officer, commended the report as a testament to the organization’s vital role in facilitating affordable credit access and delivering value to U.S. taxpayers.
He emphasized that the agency successfully assisted 1.2 million households, underlining its significant influence on the housing finance landscape—all achieved with a lean team of fewer than 300 employees.
Adetokunbo “Toky” Lofinmakin, the agency’s chief financial officer, described the results as robust, highlighting the essential value these outcomes generate for the U.S. government, which ultimately benefits taxpayers.
He pointed out that Ginnie Mae’s business model yields a negative subsidy, further illustrating its considerable contributions to government revenues.
Lofinmakin emphasized that the recent $1.3 billion contribution underscores the agency’s dedication to promoting affordable homeownership nationwide.
Future Projections
In light of Alanna McCargo’s recent resignation, Sam Valverde has assumed the role of acting president.
In his introduction to the report, he discussed ongoing modernization efforts.
Valverde mentioned that Ginnie Mae made significant updates to its manufactured housing (MH) MBS program by modifying financial and liquidity requirements for issuers.
This modification is designed to lower barriers and boost participation levels.
It represents an early step in a broader enhancement strategy prompted by feedback gathered in 2022, alongside contributions from the Federal Housing Administration (FHA).
Valverde also shed light on Ginnie Mae’s commitment to improving cybersecurity, both internally and in collaboration with financial institutions.
He touched on Ginnie Mae’s role in crafting nonbank mortgage servicing policies and emphasizing the agency’s commitment to international partnerships, as well as social impact disclosures.
The introduction of a supplemental Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) program was also highlighted.
In recognition of Ginnie Mae’s vital contributions to federal revenue, various industry trade organizations—including the Community Home Lenders of America (CHLA), the Mortgage Bankers Association, and the National Reverse Mortgage Lenders Association—expressed their support for full funding in a letter addressed to congressional leaders.
While the Senate granted the agency’s full funding request over the summer, Valverde voiced concerns regarding the anticipated budget authority for 2025.
The agency has requested $67 million for its salaries and operational expenses for fiscal year 2025; however, he refrained from predicting whether Ginnie Mae would receive this full amount.
He acknowledged ongoing support from the U.S. Department of Housing and Urban Development (HUD) and the Office of Management and Budget (OMB), noting that recent budget cycles reflect strong congressional backing.
As Valverde prepared to step down on November 30, CHLA and the Housing Policy Council (HPC) sent a joint letter to a congressional subcommittee urging the fulfillment of Ginnie Mae’s full budget request.
They noted a $13 million gap between the House’s approved spending bill and the Senate’s allocation from earlier in the summer.
Despite describing this budget discrepancy as “relatively small,” forecasts for FY25 indicate that Ginnie Mae is projected to generate nearly $1.4 billion in profits.
Source: Housingwire