At the current growth rate, the Government National Mortgage Association (GNMA) known as “Ginnie Mae” will overtake Freddie Mac within the year as the second largest single-family mortgage securitization platform. In May, Ginnie Mae’s book of business hit $1.5 trillion, more than tripling over the past seven years. This milestone affirms that financing through liquid, standardized securitizations has allowed the government to successfully implement a critical countercyclical role.
But how does Ginnie Mae differ from the government sponsored enterprises (GSEs) and why has its remarkable growth been critical to the post-crisis stabilization of the mortgage market?
via Move over, Freddie Mac: Ginnie Mae will be number 2 soon.