Last week Ginnie Mae announced that the securitization of FHA ‘jumbo loans soared past $2.9 billion in only four months of issuance. This is the highest rate of issuance among all Agency Mortgage-Backed Securities issuers.’
‘In this market, we are seeing more and more issuers return to Ginnie Mae for its safety and stability,’ said Joseph J. Murin, president of Ginnie Mae. ‘This new security will enable more borrowers to qualify for safe, affordable FHA-insured loans, helping them to avoid foreclosure. This is critically important as the mortgage industry and Americans continue to navigate the ongoing market turmoil.’
In the latest report from Realtytrac.com, foreclosures are up by as much 121% across the nation over the second quarter last year.
‘Forty-eight of 50 states and 95 out of the nation’s 100 largest metro areas experienced year-over-year increases in foreclosure activity in the second quarter,’ said RealtyTrac CEO James J. Saccacio in the press release announcing the Q2 report.
This has sparked action across many of the most influential government agencies, including Ginnie Mae.
The Economic Stimulus Act of 2008 allowed FHA to raise its loan limits from $362,790 to $729,750 in some areas of the country. While the increase is only temporary and will expire December 31, 2008, it has had a major impact. In the four months since Ginnie Mae rolled out this new product, issuers have securitized $17 million in April, $331 million in May, $1.089 billion in June, and $1.470 billion in July of FHA’s jumbo loans.
Written by Realty Times Staff for www.RealtyTimescom. Copyright