Global Markets 

Analysis Report

A MONTHLY PUBLICATION OF GINNIE MAE’S 

OFFICE OF CAPITAL MARKETS

PREPARED FOR GINNIE MAE 

BY STATE STREET GLOBAL ADVISORS 

URBAN INSTITUTE, HOUSING FINANCE POLICY CENTER
CONTENTS

Relative Attractiveness of US Fixed Income and Ginnie Mae MBS

Barclays US Aggregate and Global Indices 4

Global 10-year treasury yields 5

Ginnie Mae yields and yield spreads—USD, JPY, Euro 6-8

MBS yield per duration 9

Total return and Sharpe Ratios 10 

State of the US Housing Market 

Serious delinquency rates 11

National HPI, HPI by state 11-12

Ginnie Mae Agency issuance and Agency outstanding by state 13

Size and value of the US Residential housing and mortgage markets 14

Outstanding Agency MBS 15

Origination volume over time 16

US Agency Market, Originations

Agency Gross and Net Issuance 17-19

Purchase versus refi: Percent Refi at Issuance 20

Credit Box 

First time home buyer share—purchase only loans 21-22

FICO score distribution 23

Credit box at a glance (FICO, LTV, DTI) 24-26

Historical credit box (FICO, LTV,DTI) 27-29

High LTV credit box 30-31

Ginnie Mae Nonbank Originators

Nonbank originator share (All, Purchase, Refi) 32

Ginnie Mae nonbank originator share (All, Purchase, Refi) 33

Bank vs. nonbank originators historical credit box, Ginnie Mae vs. GSE (FICO, LTV, DTI) 34-35

Bank vs. nonbank originators historical credit box, Ginnie Mae breakdown (FICO, LTV, DTI) 36-37

Holders of Ginnie Mae Mortgage Servicing Rights 

Top Holders of Ginnie Mae MSR 38-39

Non-bank Holders of Ginnie Mae MSR 40

Prepayments 

Aggregate 41

Select coupon/origination year cohorts 41-44

Other Ginnie Mae Programs

HMBS 45

Multifamily 46

Market Conditions-Agency MBS

Average daily trading volume and turnover by sector 47

Dealer net positions, repo volume 48

MBS Ownership

Ownership breakdown of total agency debt 49

MBS share of total agency debt and commercial bank ownership of MBS 50

Bank and Thrift Residential MBS Holdings 51

Foreign ownership of MBS 52-53

Fed Ownership of MBS 54
The potential impact of lower rates on refinances

An excellent proxy for single-family mortgage note rates is Freddie Mac’s Primary Mortgage Market Survey (PMMS), The PMMS 

rate was 4.17 percent in mid-April, down significantly from nearly 5 percent in November 2018. For most of 2018, the PMMS 

rate was well above 4 percent, signaling that many loans originated during 2018 and YTD 2019 may be “in-the-money” for 

refinancing to a lower note rate. This potential refinancing wave will determine MBS prepayment speeds in the coming months. 

We estimate the magnitude of potential refinance volumes at various refinance thresholds (i.e. the difference between note rate 

the PMMS) using the PMMS rate as of April 18, 2019 (4.17 for 30-year fixed, 3.62 for 15-year fixed) as our proxy for current 

rates. 

Since January 2018, Ginnie Mae has issued a total of $403 billion in MBS across coupons ranging from 3.0% to 5.0% – $355 

billion in 2018 and $48 billion in the first two months of 2019. Per our analysis, 76 percent of 2018 issuances and 96 percent of 

2019 issuances to date are backed by mortgages with note rates above the current PMMS rate. Due to closing costs and the 

hassle factor, it is not economical for all of these loans to refinance; borrowers generally find it worthwhile to refinance if the 

new mortgage rate is at least 75 basis points (bps) lower than the old rate. In some cases, borrowers may refinance at 50 bps or

lower, and some borrowers may require a 1 percent threshold. We use 75 bps in this example. Importantly, many of these 

mortgages are not currently eligible for refinancing due to Ginnie Mae seasoning requirements. Thus, prepayment speeds of new

TBA eligible MBS, will have muted prepayment speeds even though the old rate is “in-the-money” for refinancing.

The table below shows Ginnie Mae’s 2018 issuances above and below the 75 bps refinance threshold. All of Ginnie Mae’s 2018 

and YTD 2019 issued 5% coupons would fall above the threshold, totaling $43.2 billion. In the 4.5 coupon, a total of $91.6 billion 

($73.7 billion from 2018 and $17.9 billion from 2019) fall above 75 bps. Thus, a total of $134.8 billion in 2018 and 2019 YTD

issuances are “in-the-money” using the 75 bps threshold. Coupons over 4.0 percent are mostly under the 75 bps threshold. 

Source: eMBS and Urban Institute calculations.

Note: 2019 YTD issuance includes January and February.

The $104 billion in-the-money loan balance represents 26 percent of the total $403 billion in 2018 and 2019 issuances across 

various coupons. We further highlight the sub-population of VA loans that correspond to the 2018-2019 YTD MBS issuance. 

Here we see the $28 billion in-the-money loan balance represents 17% of the total $158 billion of VA loans issued across the 

coupon array. 

One can expect that the actual refinance activity will be lower because before the refinanced loan can be pooled as TBA eligible 

MBS Ginnie Mae requires that: (1) the note date on the refinance be at least 210 days after the first payment of the original 

mortgage, and (2) the borrower has made at least six payments. If we take this restriction into account, only $49.2 billion, or 

13.9% of Ginnie Mae’s 2018 issuance would be both eligible to refinance and in-the-money. If we look more granularly at the 

2018 issued 4.5% coupon, $30.1 billion or 31.8 percent of the $94.7 billion in issuance would be eligible to refinance and in-themoney. Lastly, it’s important to note that this estimate is point in time and will changes with rates and with the refinance 

incentive assumed.

Highlights this month:

• The refinance share for Ginnie Mae originations rose to 25.7 percent in February 2019, as a result of lower mortgage rates 

(page 20).

• The median FICO score for Ginnie Mae bank originations was 695 in February 2019, the lowest level since May 2018 (page 

36).

• Agency MBS trading volume averaged $250 billion in the first three months of 2019, higher than the average of the past 

several years (page 47).

Ginnie Mae 2018-2019 YTD MBS Issuances ($ billions) VA 2018-2019 YTD MBS Issuances ($ billions)

Refinance Incentive (%) Refinance Incentive (%)

Gross 

issuance ≤ 0 0−.50 .50−.75 > .75

Gross 

issuance ≤ 0 0−.50 .50−.75 > .75

Coupon Coupon

3.0% 12.3 97.8% 2.2% 3.0% 8.3 97.9% 2.1%

3.5% 80.8 92.3% 6.0% 1.8% 3.5% 39.1 92.3% 6.1% 1.6%

4.0% 150.5 92.4% 7.1% 0.6% 4.0% 64.5 93.6% 5.8% 0.6%

4.5% 115.8 48.4% 51.6% 4.5% 36.1 52.2% 47.8%

5.0% 43.2 100.0% 5.0% 9.9 100.0%

All 402.7 21.5% 35.8% 16.9% 25.8% All 158.0 28.0% 39.9% 14.7% 17.4%

HIGHLIGHTS
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

US MBS comprise 28 percent of the Barclays US Aggregate Index- less than either the US Treasury share (39 percent) 

or the US Credit share (29 percent). Fannie Mae 30-year MBS comprises the largest percent of US MBS (10 percent), 

while Ginnie Mae 30-year MBS and Freddie Mac 30-year MBS comprise 8 percent and 6 percent of the market, 

respectively. Mortgages with terms of 15 and 20 years comprise the remaining balance (4 percent) of the US MBS 

share. US securities are the single largest contributor to the Barclays Global Aggregate, accounting for 40 percent of 

the global total. US MBS comprises 12 percent of the global aggregate. 

39%

1%

29%

8%

10%

6%

4%

2%

Barclays US 

Aggregate Index

Treasury

Agency

Credit

GNMA MBS 30y

FNMA MBS 30y

FHLMC MBS 30y

15y and 20y MBS

ABS & CMBS

54%

6%

25%

12%

1%

3%

Global Treasury

Global Agency

Global Credit

US MBS

ABS & CMBS

Collateralised

(Pfandbrief)

2%

3% 1%

40%

31%

21%

1%

0.04% 2% 0%

Australia

Canada

Middle East

United States

Europe

Asia & Pacific Rim

Latin America

Africa

Supranational

Others

Sources: Bloomberg and State Street Global Advisors. Note: Data as of March 2019.

Barclays Global Aggregate Index by Country Barclays Global Aggregate Index by Sector

Sources: Bloomberg and State Street Global Advisors. 

Note: Data as of March 2019.

Sources: Bloomberg and State Street Global Advisors

Note: Data as of March 2019.

4
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19

Yield (%)

Global 10-year Treasury Yields

US 10y UK 10y GER 10y ITA 10y JPY 10y

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

10yr US Treasury hedged yield, JPY

10y US hedged yield, JPY (left)

US 10y hedged yield advantage vs 10y JGB (right)

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

10yr US Treasury hedged yield, EUR

10y US hedged yield, EUR (left)

10y US hedge yield advantage vs 10y bund (right)

Sources: Bloomberg and State Street Global Advisors. 

Note: Data as of March 2019.

Sources: Bloomberg and State Street Global Advisors

Note: Data as of March 2019.

Sources: Bloomberg and State Street Global Advisors. Note: Data as of March 2019.

US 10-year Treasury yields have generally been the highest in the developed world over the past few years, but since 

August 2018, have been neck-in-neck with Italy. In March 2019, yield on the US 10-year note declined 31 bps to 2.41 

percent, just below the 2.49 percent for the Italian 10-year note. In the UK, Germany, and Japan, 10-year 

government bond yields declined to 1.00, -0.07, and -0.08 percent, respectively, with the German 10-year yield 

entering negative territory for the first time since 2016. The hedged yield differential between the 10-year Treasury 

and foreign 10-year bonds, specifically JGBs and Bunds, now stand at -36 bps and -61 bps, respectively, a decline of 

21 and 5 bps, respectively. 

Yield(%)Yield(%)

5
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

G2SF CC yield & nominal spread, USD

G2SF CC yield, USD (left) G2SF CC yield nominal spread vs UST 5/10 blend (50%/50%) (right)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

GNSF CC yield & nominal spread, USD

GNSF CC yield, USD (left) GNSF CC yield nominal spread vs UST 5/10 blend (50%/50%) (right)

Sources: Bloomberg and State Street Global Advisors. Note: Data as of March 2019.

Sources: Bloomberg and State Street Global Advisors. Note: Data as of March 2019.

The nominal yield on both the current coupon GNMA II and GNMA I securities fell in March 2019. Current 

coupon Ginnie Mae securities outyield their Treasury counterparts (relative to the average of 5- and 10-year 

Treasury yields) by 59 bps each on G2SF and GNSF, a tightening since last month. However, spreads on the 

Ginnie 4.0 and 4.5% coupons widened considerably, reflecting the market rally.

Yield(%) Yield(%)

Yield(%)

Yield(%)

6
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

0.0

0.5

1.0

1.5

2.0

2.5

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

G2SF CC yield & nominal spread, JPY

G2SF CC yield, JPY (left) G2SF CC yield nominal spread vs JGB 5/10 blend (50%/50%) (right)

Sources: Bloomberg and State Street Global Advisors. Note: Data as of March 2019.

Sources: Bloomberg and State Street Global Advisors. Note: Data as of March 2019.

If Ginnie Mae securities are hedged into foreign currencies, they look attractive on a yield basis versus many 

sovereign alternatives. The figures below show that current coupon G2SF and GNSF hedged into Japanese yen 

outyield the JGB 5/10 blend by 20 and 21 bps respectively at the end of March, a significant tightening from the 

end of February.

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

GNSF CC yield & nominal spread, JPY 

GNSF CC yield, JPY (left) GNSF CC yield nominal spread vs JGB 5/10 blend (50%/50%) (right)

Yield(%) Yield(%)

Yield(%) Yield(%)

7
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

G2SF CC yield & nominal spread, EUR

G2SF CC yield, EUR (left) G2SF CC yield nominal spread vs GER 5/10 blend (50%/50%) (right)

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

GNSF CC yield & nominal spread, EUR

GNSF CC yield, EUR (left) GNSF CC yield nominal spread vs GER 5/10 blend (50%/50%) (right)

Sources: Bloomberg and State Street Global Advisors. Note: Data as of March 2019.

Sources: Bloomberg and State Street Global Advisors. Note: Data as of March 2019.

If Ginnie Mae securities are hedged into foreign currencies, they look attractive on a yield basis versus sovereign 

alternatives. The figures below show that, current coupon G2SF and GNSF hedged into euros outyield the 

average of the German 5/10 blend by 8 and 9 bps respectively at the end of March, significantly less than the 23-

25 bps at the end of February 2019.

Yield(%) Yield(%)

Yield(%) Yield(%)

8
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

Sources: Bloomberg and State Street Global Advisors. Note: Yields are in base currency of security and unhedged. 

Data as of March 2019.

US MBS yields are about the same or higher than most securities with the same or longer durations. The only 

security class with significantly more yield is the US high yield index, where duration, a measure of sensitivity to 

interest rate changes, does not fully capture the volatility of the high yield asset class. Investors are unable to 

match the yield on Ginnie Mae securities, while preserving the full government guarantee, even if they extend 

their duration significantly.

Security Duration Yield

US 5y 4.7 2.23

US 10y 8.6 2.41

GNMA II 4.0% 4.7 3.42

GNMA II 3.5% 5.9 3.33

JPY 5y 4.7 -0.20

JPY 10y 10.0 -0.09

GER 5y 5.0 -0.45

GER 10y 9.8 -0.07

ITA 5y 4.2 1.50

ITA 10y 8.3 2.49

US credit 7.2 3.55

US credit >= A 7.4 3.33

US HY 3.4 6.43

Pan-Euro Corp 5.6 1.14

Pan-Euro HY 3.3 3.81

US 5y US 10y

G2 3.5%

G2 4.0%

JPY 5y

GER 10y

GER 5y JPY 10y

ITA 5y

ITA 10y

US Credit

US Credit>=A

US HY

Pan-Euro 

Corp

Pan-Euro HY

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

0.0 2.0 4.0 6.0 8.0 10.0 12.0

Yield

Duration

Yield versus duration

9
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

Average Return (Per Month)

Time Period US MBS 

Ginnie Mae US Treasury US Credit Corp Pan Euro Credit Corp US High Yield* Pan EuroHigh Yield*

1 year 0.37 0.35 0.41 0.24 0.49 0.20

3 year 0.13 0.09 0.30 0.18 0.70 0.40

5 year 0.20 0.18 0.31 0.28 0.39 0.35

10 year 0.26 0.20 0.55 0.51 0.91 1.09

Source: State Street

*Assumes 2% capitalization max per issuer

Average Excess Return (Per Month)

Time Period US MBS 

Ginnie Mae US Treasury US Credit Corp Pan Euro Credit Corp US High Yield* Pan EuroHigh Yield*

1 year 0.19 0.17 0.23 0.30 0.31 0.25

3 year 0.03 -0.01 0.20 0.24 0.59 0.46

5 year 0.14 0.12 0.25 0.33 0.33 0.40

10 year 0.23 0.17 0.51 0.53 0.88 1.10

Source: State Street

*Assumes 2% capitalization max per issuer

Standard Deviation

Time Period US MBS 

Ginnie Mae US Treasury US Credit Corp Pan Euro Credit Corp US High Yield* Pan EuroHigh Yield*

1 year 0.78 1.00 1.23 0.74 1.70 1.39

3 year 0.64 0.96 1.11 0.81 1.33 1.13

5 year 0.59 0.95 1.12 0.98 1.56 1.30

10 year 0.68 1.01 1.30 1.24 2.15 2.75

Source: State Street

*Assumes 2% capitalization max per issuer

Sharpe Ratio

Time Period US MBS 

Ginnie Mae US Treasury US Credit Corp Pan Euro Credit Corp US High Yield Pan EuroHigh Yield*

1 year 0.24 0.17 0.19 0.40 0.19 0.18

3 year 0.05 -0.01 0.18 0.30 0.45 0.40

5 year 0.23 0.13 0.22 0.33 0.21 0.31

10 year 0.33 0.17 0.39 0.43 0.41 0.40

*Assumes 2% capitalization max per issuer on high yield indices

Sources: Barclays Indices, Bloomberg and State Street Global Advisors Note: Data as of March 2019.

The average return on the Ginnie Mae index over the past decade has been slightly higher than the US Treasury 

index, but lower than many alternatives, including the US Investment-Grade Corporate and US and European 

High Yield indices. However, the standard deviation of the Ginnie Mae index is the lowest of any sector, as it has 

the least price volatility over a 3, 5 and 10 year horizon. The result: The Sharpe Ratio, or excess return per unit of 

risk over the 10-year horizon is only marginally lower than most of the corporate indices, although a good bit 

higher than the US Treasury Index.

10
State of the US Housing Market

7.8%

4.2%

-15%

-10%

-5%

0%

5%

10%

15%

Jan-00

Jul-00

Jan-01

Jul-01

Jan-02

Jul-02

Jan-03

Jul-03

Jan-04

Jul-04

Jan-05

Jul-05

Jan-06

Jul-06

Jan-07

Jul-07

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

Jan-15

Jul-15

Jan-16

Jul-16

Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Year-over-year growth rate

National Year-Over-Year HPI Growth

Black Knight HPI year-over-year Zillow HVI year-over-year

Sources: Black Knight, Zillow, and Urban Institute. Note:Data as of December 2018.

0.76%

0.69%

3.76%

1.96%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2Q051Q064Q063Q072Q081Q094Q093Q102Q111Q124Q123Q132Q141Q154Q153Q162Q171Q184Q18

Serious delinquency rates

Fannie Mae Freddie Mac FHA VA

Sources: Fannie Mae, Freddie Mac, MBA Delinquency Survey and Urban Institute.

Note: Serious delinquency is defined as 90 days or more past due or in the foreclosure process. Data as of Q4 2018.

Serious Delinquency Rates: Single-Family Loans

Serious delinquencies rates for single-family GSE loans, FHA loans, and VA loans remained stable in Q4 2018. GSE 

delinquencies remain high relative to 2006-2007, while FHA and VA delinquencies (which are higher than their GSE 

counterparts) are at levels lower than 2006-2007. After touching 6.5 percent in early 2018, year-over-year house 

price appreciation has slowed in recent months to 4.2 percent in January 2019, per Black Knight repeat sales index. 

Zillow’s hedonic index does not exhibit the same trend.

11
State of the US Housing Market

Debt,

household 

mortgages,

$9,833

Sources: Black Knight and Urban Institute. Note: HPI data as of January 2018. Negative sign indicates that state is above earlier peak. Peak refers to the month when 

HPI reached the highest level for each state/US during the housing boom period, ranging from 09/2005 to 09/2008. Trough represents the month when HPI fell to 

the lowest level for each state/US after the housing bust, ranging from 01/2009 to 03/2012. Current is 01/2019, the latest HPI data period.

Nationally, nominal home prices have increased by 47.9 percent since the trough, and now exceed their pre-crisis 

peak valuation on a nominal basis by 10.0 percent. The picture is very different for different states, with many states 

well in excess of the prior peak, while a number of states remain more than 11 percent below peak levels: Connecticut 

(15.6% below), Nevada (12.1% below), Illinois (11.8% below), Maryland (11.8% below) and Florida (11.5% below). 

Illinois (11.8% below). HPI Changes

State 2000 to Peak Peak to Trough Trough to Current YOY Current HPI % Above Peak

National 75.8% -25.6% 47.9% 4.2% 10.0%

Alabama 44.0% -15.3% 24.9% 5.9% 5.8%

Alaska 69.5% -3.1% 17.7% 1.1% 14.0%

Arizona 110.2% -48.0% 73.1% 6.4% -9.9%

Arkansas 41.7% -10.6% 22.4% 4.2% 9.4%

California 155.5% -43.4% 83.5% 2.2% 3.8%

Colorado 40.1% -12.7% 71.6% 4.9% 49.8%

Connecticut 92.5% -24.7% 12.1% 2.1% -15.6%

Delaware 94.6% -23.6% 25.3% 2.4% -4.3%

District of Columbia 174.8% -13.4% 48.8% 2.0% 28.9%

Florida 129.3% -47.0% 66.9% 5.7% -11.5%

Georgia 38.3% -32.1% 58.9% 6.1% 7.8%

Hawaii 162.1% -22.0% 43.8% -0.1% 12.2%

Idaho 71.5% -28.4% 69.4% 11.2% 21.2%

Illinois 61.6% -34.6% 35.0% 2.4% -11.8%

Indiana 21.4% -7.5% 30.2% 6.6% 20.4%

Iowa 28.3% -4.9% 22.7% 3.8% 16.6%

Kansas 34.6% -9.3% 38.1% 6.2% 25.4%

Kentucky 29.7% -7.6% 28.8% 3.7% 19.1%

Louisiana 48.7% -5.1% 21.1% 2.0% 14.9%

Maine 82.6% -12.5% 33.5% 7.5% 16.8%

Maryland 129.5% -28.4% 23.2% 2.1% -11.8%

Massachusetts 92.8% -22.6% 47.6% 3.7% 14.2%

Michigan 24.2% -39.7% 67.7% 5.5% 1.2%

Minnesota 66.4% -27.6% 47.1% 4.3% 6.5%

Mississippi 41.1% -13.6% 24.1% 5.1% 7.2%

Missouri 42.7% -14.6% 25.9% 4.8% 7.5%

Montana 82.1% -10.6% 50.2% 7.0% 34.2%

Nebraska 26.4% -6.6% 35.1% 4.4% 26.2%

Nevada 127.0% -59.4% 116.4% 9.8% -12.1%

New Hampshire 90.8% -23.4% 32.8% 4.0% 1.7%

New Jersey 118.1% -27.8% 24.2% 3.2% -10.3%

New Mexico 66.7% -16.1% 17.7% 3.3% -1.3%

New York 99.0% -15.2% 36.2% 3.9% 15.5%

North Carolina 40.4% -15.5% 30.4% 4.6% 10.2%

North Dakota 54.1% -4.0% 51.1% 0.8% 45.1%

Ohio 21.2% -18.3% 29.3% 4.9% 5.6%

Oklahoma 37.4% -2.4% 15.5% 2.9% 12.8%

Oregon 82.3% -27.9% 70.0% 4.0% 22.7%

Pennsylvania 70.4% -11.6% 20.4% 4.3% 6.4%

Rhode Island 131.2% -34.3% 44.7% 4.8% -5.0%

South Carolina 45.1% -19.3% 29.7% 3.9% 4.7%

South Dakota 45.2% -4.2% 45.0% 8.9% 38.9%

Tennessee 35.3% -11.9% 37.2% 5.2% 20.9%

Texas 33.2% -5.8% 46.2% 3.5% 37.8%

Utah 54.4% -21.8% 63.7% 7.5% 28.0%

Vermont 83.7% -7.5% 26.5% 5.6% 17.0%

Virginia 99.5% -22.7% 21.9% 2.2% -5.8%

Washington 85.5% -28.6% 75.1% 4.2% 25.1%

West Virginia 43.1% -6.0% 20.2% 7.1% 13.0%

Wisconsin 44.8% -16.3% 29.0% 5.5% 8.0%

Wyoming 77.7% -6.9% 24.6% 2.3% 16.0%

12
State of the US Housing Market

Debt,

household 

mortgages,

$9,833

Agency Issuance (past 1 year) Agency Outstanding 

State Ginnie Mae Share Ginnie Mae Average

Loan Size (Thousands)

GSE Average Loan 

Size (Thousands)

Ginnie Mae 

Share

Ginnie Mae Average 

Loan Size (Thousands)

GSE Average Loan Size 

(Thousands)

National 33.3% 216.4 231.4 30.5% 164.7 187.5

Alabama 43.8% 165.0 186.9 44.8% 128.5 151.3

Alaska 51.1% 285.3 250.2 51.3% 233.5 199.0

Arizona 31.9% 216.7 220.1 31.7% 165.8 177.3

Arkansas 43.1% 144.8 169.8 44.4% 110.6 136.9

California 27.6% 352.1 333.9 21.2% 269.8 266.8

Colorado 31.7% 295.5 283.3 27.3% 218.5 223.2

Connecticut 32.1% 216.7 226.6 29.3% 183.7 189.2

Delaware 37.3% 215.7 226.6 36.1% 180.7 184.1

District of Columbia 18.7% 418.7 358.8 16.1% 301.7 302.4

Florida 40.2% 211.4 211.1 35.0% 163.9 169.4

Georgia 39.7% 188.7 211.8 38.5% 142.6 168.9

Hawaii 37.7% 493.2 396.1 30.6% 392.2 315.2

Idaho 32.4% 207.8 212.6 31.8% 153.3 164.8

Illinois 27.1% 179.1 198.3 24.4% 141.7 160.7

Indiana 38.0% 145.1 160.5 37.5% 111.0 125.7

Iowa 27.4% 147.4 163.1 25.6% 114.1 131.2

Kansas 36.2% 156.6 176.8 35.4% 120.4 138.7

Kentucky 39.4% 152.1 168.1 38.7% 121.8 132.4

Louisiana 42.0% 171.3 194.1 41.7% 137.1 158.7

Maine 35.2% 187.1 203.5 32.0% 153.1 160.1

Maryland 43.9% 285.6 265.1 39.2% 232.9 218.9

Massachusetts 24.6% 297.9 284.3 19.1% 236.5 227.8

Michigan 25.6% 149.2 170.2 25.0% 113.4 134.4

Minnesota 24.1% 202.6 214.3 23.9% 156.3 170.2

Mississippi 50.2% 154.9 174.2 50.2% 119.8 141.6

Missouri 35.5% 154.2 173.8 34.7% 120.9 138.8

Montana 29.8% 222.6 225.6 29.4% 169.6 175.7

Nebraska 32.2% 167.7 173.1 32.8% 122.4 137.8

Nevada 33.6% 255.0 238.5 35.4% 186.7 189.4

New Hampshire 31.6% 238.3 227.6 28.9% 193.7 180.7

New Jersey 29.8% 253.7 265.0 27.2% 211.7 218.9

New Mexico 41.7% 182.6 189.6 42.4% 141.4 152.7

New York 26.8% 249.2 268.9 25.3% 186.3 213.6

North Carolina 34.0% 185.3 206.8 33.8% 141.4 165.5

North Dakota 29.3% 213.9 206.6 25.9% 167.3 166.0

Ohio 35.1% 145.0 157.5 35.8% 112.7 126.4

Oklahoma 44.9% 154.9 173.7 47.8% 118.8 139.8

Oregon 27.0% 263.4 263.9 23.5% 198.5 206.1

Pennsylvania 32.3% 168.1 194.8 32.4% 137.1 158.4

Rhode Island 38.5% 234.4 226.0 33.2% 187.3 182.2

South Carolina 39.3% 187.4 196.3 37.3% 146.9 160.1

South Dakota 37.3% 179.0 188.2 35.1% 143.1 149.4

Tennessee 39.9% 187.2 204.6 39.8% 138.5 163.1

Texas 34.7% 199.8 218.1 35.6% 141.3 174.2

Utah 28.4% 250.9 259.4 28.0% 190.2 205.6

Vermont 22.2% 190.5 199.6 19.7% 166.0 160.0

Virginia 45.1% 271.0 259.8 41.0% 223.6 216.5

Washington 30.2% 294.4 295.1 27.7% 218.8 226.9

West Virginia 49.1% 156.3 154.8 45.4% 126.5 127.3

Wisconsin 22.2% 169.7 178.0 20.7% 134.5 141.5

Wyoming 41.2% 216.8 215.9 39.8% 177.9 175.9

Sources: eMBS and Urban Institute. Note: Ginnie Mae outstanding share are based on loan balance as of February 2019. Ginnie Mae issuance is based on the last 12 

months, from March 2018 to February 2019.

Ginnie Mae MBS constitute 30.5 percent of outstanding agency issuance by loan balance and 33.3 percent of new 

issuance over the past year. However, the Ginnie Mae share varies widely across states, with the share of 

outstanding (by loan balance) as low as 16.1 percent in the District of Columbia and as high as 51.3 percent in 

Alaska. In general, the Ginnie Mae share is higher in states with lower home prices.

13
State of the US Housing Market

$10.9

$16.4

$27.2

0

5

10

15

20

25

30

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$ Trillions

Value of the US Housing Market

Debt, household mortgages Household equity Total Value

Sources: Federal Reserve Flow of Funds and Urban Institute. Data as of Q4 2018.

$0.46

$0.53

$6.64

$3.25

0

1

2

3

4

5

6

7

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$ Trillions

Size of the US Residential Mortgage Market

Private Label Securities Second Liens Agency MBS Unsecuritized first liens

Sources: Federal Reserve Flow of Funds, Inside Mortgage Finance, eMBS and Urban Institute.

Note: Unsecuritized first liens includes loans held by commercial banks, GSEs, savings institutions, and credit unions. Data as of Q4 2018.

The Federal Reserve's Flow of Funds report has consistently indicated an increasing total value of the housing 

market driven by growing household equity since 2012, and 2018 Q4 was no different. While total mortgage debt 

outstanding increased slightly to $10.9 trillion, and household equity increased slightly to $16.4 trillion, bringing 

the total value of the housing market to $27.2 trillion, 13 percent higher than the pre-crisis peak in 2006. Agency 

MBS make up 61.0 percent of the total mortgage market, private-label securities make up 4.3 percent, and 

unsecuritized first liens at the GSEs, commercial banks, savings institutions, and credit unions make up 29.8 

percent. Second liens comprise the remaining 4.9 percent of the total.

14
State of the US Housing Market

As of February 2019, outstanding securities in the agency market totaled $6.66 trillion and were 43.1 percent 

Fannie Mae, 27.4 percent Freddie Mac, and 29.5 percent Ginnie Mae. Ginnie Mae has more outstandings than 

Freddie Mac. Within the Ginnie Mae market, both FHA and VA have grown very rapidly post-crisis. FHA comprises 

59.8 percent of total Ginnie Mae outstanding, while VA comprises 34.2 percent.

$2.87

$1.83

$1.97

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Feb-01

Aug-01

Feb-02

Aug-02

Feb-03

Aug-03

Feb-04

Aug-04

Feb-05

Aug-05

Feb-06

Aug-06

Feb-07

Aug-07

Feb-08

Aug-08

Feb-09

Aug-09

Feb-10

Aug-10

Feb-11

Aug-11

Feb-12

Aug-12

Feb-13

Aug-13

Feb-14

Aug-14

Feb-15

Aug-15

Feb-16

Aug-16

Feb-17

Aug-17

Feb-18

Aug-18

Feb-19

$ Trillions

Outstanding Agency Mortgage-Backed Securities

Fannie Mae Freddie Mac Ginnie Mae

Sources: eMBS and Urban Institute. Note: Data as of February 2019.

$1.2

$0.7

$0.1

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Feb-01

Aug-01

Feb-02

Aug-02

Feb-03

Aug-03

Feb-04

Aug-04

Feb-05

Aug-05

Feb-06

Aug-06

Feb-07

Aug-07

Feb-08

Aug-08

Feb-09

Aug-09

Feb-10

Aug-10

Feb-11

Aug-11

Feb-12

Aug-12

Feb-13

Aug-13

Feb-14

Aug-14

Feb-15

Aug-15

Feb-16

Aug-16

Feb-17

Aug-17

Feb-18

Aug-18

Feb-19

$ Trillions

Outstanding Ginnie Mae Mortgage-Backed Securities

FHA VA Other

Sources: eMBS and Urban Institute Note: Data as of February 2019.

15
State of the US Housing Market

$0.74

$0.37

$0.03

$0.49

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$ trillions

First Lien Origination Volume Portfolio

PLS securitization

FHA/VA securitization

GSE securitization

Sources: Inside Mortgage Finance and Urban Institute. Note: Data as of Q4 2018.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

First Lien Origination Share

First lien originations totaled $1.63 trillion in 2018, down slightly from 2017, as higher interest rates curtailed 

refinance activity. The share of bank portfolio originations was 30.0 percent in the 2018, slightly below the 2017 

level. The GSE share was 45.7 percent, on par with 2017. The FHA/VA share remained constant at 22.9 percent.

Private-label securities comprised 1.6 percent of originations, higher than the 2017 share of 0.6 percent.

Sources: Inside Mortgage Finance and Urban Institute. Note: Data as of Q4 2018. 

30.0%

1.6%

22.9%

45.7%

16
US Agency Market, Originations

Debt,

household 

mortgages,

$9,833

Ginnie Mae Breakdown: Agency Gross Issuance

Issuance Year FHA VA Other Total

2000 $80.2 $18.8 $3.2 $102.2

2001 $133.8 $34.7 $3.1 $171.5

2002 $128.6 $37.9 $2.5 $169.0

2003 $147.9 $62.7 $2.5 $213.1

2004 $85.0 $31.8 $2.5 $119.2

2005 $55.7 $23.5 $2.1 $81.4

2006 $51.2 $23.2 $2.3 $76.7

2007 $67.7 $24.2 $3.0 $94.9

2008 $221.7 $39.0 $6.9 $267.6

2009 $359.9 $74.6 $16.8 $451.3

2010 $304.9 $70.6 $15.3 $390.7

2011 $216.1 $82.3 $16.9 $315.3

2012 $253.4 $131.3 $20.3 $405.0

2013 $239.2 $132.2 $22.2 $393.6

2014 $163.9 $111.4 $21.0 $296.3

2015 $261.5 $155.6 $19.2 $436.3

2016 $281.8 $206.5 $19.9 $508.2

2017 $257.6 $177.8 $20.2 $455.6

2018 $222.6 $160.8 $17.2 $400.6

2019 YTD $30.3 $20.6 $1.5 $52.5

2019 YTD % Change YOY -14.4% -29.6% -44.7% -22.2%

2019 Ann. $182.1 $123.5 $9.2 $314.8

Agency Gross Issuance

Issuance Year Fannie Mae Freddie Mac GSE Total Ginnie Mae Total

2000 $202.8 $157.9 $360.6 $102.2 $462.8

2001 $506.9 $378.2 $885.1 $171.5 $1,056.6

2002 $710.0 $529.0 $1,238.9 $169.0 $1,407.9

2003 $1,174.4 $700.5 $1,874.9 $213.1 $2,088.0

2004 $517.5 $355.2 $872.6 $119.2 $991.9

2005 $514.1 $379.9 $894.0 $81.4 $975.3

2006 $500.2 $352.9 $853.0 $76.7 $929.7

2007 $633.0 $433.3 $1,066.2 $94.9 $1,161.1

2008 $562.7 $348.7 $911.4 $267.6 $1,179.0

2009 $817.1 $462.9 $1,280.0 $451.3 $1,731.3

2010 $626.6 $377.0 $1,003.5 $390.7 $1,394.3

2011 $578.2 $301.2 $879.3 $315.3 $1,194.7

2012 $847.6 $441.3 $1,288.8 $405.0 $1,693.8

2013 $749.9 $426.7 $1,176.6 $393.6 $1,570.2

2014 $392.9 $258.0 $650.9 $296.3 $947.2

2015 $493.9 $351.9 $845.7 $436.3 $1,282.0

2016 $600.5 $391.1 $991.6 $508.2 $1,499.8

2017 $531.3 $345.9 $877.3 $455.6 $1,332.9

2018 $480.9 $314.1 $795.0 $400.6 $1,195.3

2019 YTD $60.7 $39.1 $99.8 $52.5 $152.3

2019 YTD % Change YOY -30.8% -8.8% -23.6% -22.2% -23.1%

2019 Ann. $363.9 $234.8 $598.7 $314.8 $913.5

Sources: eMBS and Urban Institute (top and bottom). 

Note : Dollar amounts are in billions. “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing and the Department of 

Agriculture’s Rural Development. All data is as of February 2019.

Agency gross issuance was $152.3 billion in the first two months of 2019, down 23.1 percent compared with the 

same period in 2018. Ginnie Mae gross issuance was down by 22.2 percent and GSE gross issuance was down by 

23.6 percent. Within the Ginnie Mae market, FHA was down by 14.4 percent and VA origination was down by 29.6 

percent. The broad decline in origination volume is the result of higher interest rates curtailing refinance volume. 

We expect to see the impact of the recent drop in interest rates, which has caused an increase in refi applications, 

to be very apparent in the next month or two.

17
US Agency Market, Originations

Debt,

household 

mortgages,

$9,833

Ginnie Mae Breakdown: Net Issuance

Issuance Year FHA VA Other Total

2000 $29.0 $0.3 $0.0 $29.3

2001 $0.7 -$10.6 $0.0 -$9.9

2002 -$22.5 -$28.7 $0.0 -$51.2

2003 -$56.5 -$21.1 $0.0 -$77.6

2004 -$45.2 $5.1 $0.0 -$40.1

2005 -$37.3 -$12.1 $7.2 -$42.2

2006 -$4.7 $3.8 $1.2 $0.2

2007 $20.2 $8.7 $2.0 $30.9

2008 $173.3 $17.7 $5.4 $196.4

2009 $206.4 $35.1 $15.8 $257.4

2010 $158.6 $29.6 $10.0 $198.3

2011 $102.8 $34.0 $12.8 $149.6

2012 $58.9 $45.9 $14.3 $119.1

2013 $20.7 $53.3 $13.9 $87.9

2014 -$4.8 $53.9 $12.5 $61.6

2015 $22.5 $66.9 $7.9 $97.3

2016 $45.6 $73.2 $6.0 $124.9

2017 $50.1 $76.1 $5.0 $131.3

2018 $49.2 $61.2 $3.5 $113.9

2019 YTD $8.1 $6.5 -$0.5 $14.1

2019 YTD % Change YOY 137.2% -41.5% -201.5% -5.4%

2019 Ann. $97.5 $77.6 -$5.5 $169.6

Agency Net Issuance

Issuance Year Fannie Mae Freddie Mac GSE Total Ginnie Mae Total

2000 $92.0 $67.8 $159.8 $29.3 $189.1

2001 $216.6 $151.8 $368.4 -$9.9 $358.5

2002 $218.9 $138.3 $357.2 -$51.2 $306.1

2003 $293.7 $41.1 $334.9 -$77.6 $257.3

2004 $32.3 $50.2 $82.5 -$40.1 $42.4

2005 $62.5 $111.7 $174.2 -$42.2 $132.0

2006 $164.3 $149.3 $313.6 $0.2 $313.8

2007 $296.1 $218.8 $514.9 $30.9 $545.7

2008 $213.0 $101.8 $314.8 $196.4 $511.3

2009 $208.1 $42.5 $250.6 $257.4 $508.0

2010 -$156.4 -$146.8 -$303.2 $198.3 -$105.0

2011 -$32.6 -$95.8 -$128.4 $149.6 $21.2

2012 $32.9 -$75.3 -$42.4 $119.1 $76.8

2013 $57.5 $11.6 $69.1 $87.9 $157.0

2014 $0.5 $30.0 $30.5 $61.6 $92.1

2015 $10.2 $65.0 $75.1 $97.3 $172.5

2016 $68.6 $66.8 $135.5 $125.3 $260.8

2017 $90.2 $78.2 $168.5 $131.3 $299.7

2018 $79.4 $68.4 $147.7 $113.9 $261.6

2019 YTD $6.7 $6.1 $12.8 $14.1 $26.9

2019 YTD % Change YOY -67.0% 132.3% -44.3% -5.4% -29.0%

2019 Ann. $40.4 $36.4 $76.8 $84.8 $161.6

Sources: eMBS and Urban Institute. Note : Dollar amounts are in billions. “Other“ refers to loans insured by HUD’s Office of Public and Indian 

Housing and the Department of Agriculture’s Rural Development. All data is as of February 2019.

Agency net issuance totaled $26.9 billion in the first two months of 2019, down 29.0 percent compared to the same period in 

2018; GSE net issuance was down much more. Ginnie Mae net issuance was $14.1 billion, comprising 52.5 percent of total 

agency net issuance. Ginnie Mae net issuance was down 5.4 percent compared to the same period in 2019. Ginnie Mae net 

issuance in January and February 2019 was comprised of 45.8 percent VA, 57.5 percent FHA. 

18
US Agency Market, Originations

Debt,

household 

mortgages,

$9,833

Sources: eMBS and Urban Institute.

Note : Dollar amounts are in billions. “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing and the Department of 

Agriculture’s Rural Development. All data is as of February 2019.

Agency gross issuance has been generally declining as rates have risen, but the seasonal trend is very strong. This 

table allows for a comparison with the same month in previous years. February 2019 gross agency issuance of 

$70.7 billion is below the February 2018 level of $93.7 billion. We expect to see the impact of the recent drop in 

interest rates, which has caused an increase in refi applications, to be very apparent in the next month or two.

Date

Gross Issuance Net Issuance

Fannie Mae Freddie Mac Ginnie Mae Total Fannie Mae Freddie Mac Ginnie Mae Total

Jan-16 $35.6 $22.5 $32.5 $90.6 -$0.6 $1.0 $7.3 $7.8

Feb-16 $32.4 $21.2 $30.5 $84.1 $2.4 $3.1 $8.4 $13.9

Mar-16 $39.7 $27.5 $32.9 $100.1 $7.9 $8.2 $9.6 $25.8

Apr-16 $43.8 $26.2 $40.1 $110.1 $0.8 -$0.2 $8.8 $9.4

May-16 $44.2 $29.9 $41.6 $115.6 $2.4 $4.4 $11.4 $18.3

Jun-16 $46.7 $30.1 $43.9 $120.8 $2.7 $3.0 $11.9 $17.7

Jul-16 $49.8 $35.3 $46.1 $131.1 $2.3 $6.3 $10.8 $19.4

Aug-16 $54.9 $37.9 $46.7 $139.5 $10.4 $11.0 $13.8 $35.2

Sep-16 $65.8 $44.0 $52.5 $162.4 $8.7 $9.0 $12.5 $30.2

Oct-16 $66.0 $35.9 $47.4 $149.3 $11.8 $2.7 $9.3 $24.5

Nov-16 $48.8 $40.2 $47.2 $136.3 -$3.5 $7.9 $10.3 $14.8

Dec-16 $72.7 $40.5 $46.8 $160.0 $23.3 $10.4 $10.8 $44.6

Jan-17 $55.6 $38.5 $42.6 $136.6 $10.3 $10.7 $10.3 $31.9

Feb-17 $37.6 $27.4 $33.1 $98.1 $3.1 $6.5 $9.2 $18.9

Mar-17 $39.5 $24.4 $31.3 $95.2 $10.3 $6.2 $9.6 $26.3

Apr-17 $39.3 $21.2 $36.4 $97.0 $4.8 $0.4 $11.7 $17.3

May-17 $40.3 $22.6 $36.4 $99.3 $7.6 $2.7 $13.1 $23.6

Jun-17 $45.7 $25.1 $39.9 $110.7 $8.3 $2.4 $13.2 $24.1

Jul-17 $45.3 $27.6 $40.6 $113.5 $5.8 $3.5 $12.1 $21.5

Aug-17 $49.1 $29.3 $42.8 $121.1 $12.0 $6.7 $15.6 $33.9

Sep-17 $47.3 $27.9 $40.2 $115.5 $7.4 $3.8 $10.5 $21.7

Oct-17 $42.9 $34.6 $38.4 $115.9 $6.4 $12.5 $10.7 $29.6

Nov-17 $43.5 $37.2 $37.8 $118.5 $4.6 $13.6 $8.2 $26.4

Dec-17 $45.3 $30.0 $36.2 $111.5 $9.6 $8.2 $6.8 $24.6

Jan-18 $47.4 $21.4 $35.2 $104.0 $12.4 $0.3 $7.8 $20.6

Feb-18 $40.3 $21.5 $31.9 $93.7 $8.0 $2.3 $7.1 $17.4

Mar-18 $35.6 $21.3 $29.0 $85.9 $4.9 $3.0 $6.1 $14.0

Apr-18 $36.3 $26.2 $32.7 $95.2 $1.7 $6.1 $9.1 $16.8

May-18 $38.9 $27.5 $33.7 $100.1 $4.5 $7.2 $10.6 $22.4

Jun-18 $38.2 $28.8 $35.6 $102.5 $2.2 $6.8 $10.5 $19.5

Jul-18 $40.3 $26.2 $35.6 $102.1 $4.2 $3.7 $10.7 $18.6

Aug-18 $50.4 $29.9 $37.5 $117.8 $14.9 $7.9 $12.8 $35.6

Sep-18 $41.8 $30.1 $34.8 $106.6 $5.7 $6.2 $9.1 $21.0

Oct-18 $39.8 $27.4 $33.2 $100.3 $10.1 $7.6 $12.1 $29.7

Nov-18 $35.1 $30.1 $32.4 $97.6 $2.6 $10.8 $9.6 $22.9

Dec-18 $36.9 $23.9 $28.4 $89.1 $8.2 $6.4 $8.4 $23.0

Jan-19 $33.3 $19.2 $29.0 $81.6 $5.5 $2.5 $9.5 $17.5

Feb-19 $27.3 $19.9 $23.5 $70.7 $1.2 $3.6 $4.6 $9.5

Monthly Agency Issuance

19
US Agency Market, Originations

0%

1%

2%

3%

4%

5%

6%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Aug-04

Feb-05

Aug-05

Feb-06

Aug-06

Feb-07

Aug-07

Feb-08

Aug-08

Feb-09

Aug-09

Feb-10

Aug-10

Feb-11

Aug-11

Feb-12

Aug-12

Feb-13

Aug-13

Feb-14

Aug-14

Feb-15

Aug-15

Feb-16

Aug-16

Feb-17

Aug-17

Feb-18

Aug-18

Feb-19

Mortgage Rate

Percent Refi

Percent Refi at Issuance

Freddie Mac (left) Fannie Mae (left) Ginnie Mae (left) Mortgage rate (right)

23.9%

33.0%

0% 0.01%

10%

20%

30%

40%

50%

60%

70%

Aug-13

Oct-13

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

Percent Refi

Percent Refi at Issuance: Ginnie Mae Breakdown

FHA VA Other

Sources: eMBS and Urban Institute. Note: Based on at-issuance balance. Data as of February 2019.

Sources: eMBS and Urban Institute.

Note: Based on at-issuance balance. “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing and the Department of Agriculture’s 

Rural Development. Data as of February 2019.

The Ginnie Mae refi share stood at 26 percent in February 2019, below the 35 and 33 percent shares for Fannie 

Mae and Freddie Mac, respectively. Within Ginnie Mae, VA had the highest refi share at 33 percent in February 

2019, followed by FHA’s 24 percent. In the spring and summer of 2018, refi share for all agencies fell sharply due to 

rising interest rates and seasonal upticks in purchase activity. The refi share stabilized after the summer surge in 

purchase activity ended; it has ticked up slightly in early 2019 as rates have trended down.

20
Credit Box

40.3%

46.4%

71.3%

53.5%

20%

30%

40%

50%

60%

70%

80%

Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19

First-time homebuyer share (%)

First Time Homebuyer Share: Purchase Only Loans

Freddie Fannie Ginnie All

Sources: eMBS and Urban Institute. Note: Data as of February 2019.

The first time homebuyer share of Ginnie Mae purchase loans increased slightly to 71.3 percent in February 

2019, just below the 72.4 percent historical high reached in May 2018. First time homebuyers comprise a 

significantly higher share of the Ginnie Mae purchase market than of the GSE purchase market, with first time 

homebuyers accounting for 46.4 percent and 40.3 percent of Fannie Mae and Freddie Mac purchase 

originations respectively. The bottom table shows that based on mortgages originated in February 2019, the 

average first-time homebuyer was more likely than an average repeat buyer to take out a smaller loan, have a 

lower credit score, a much higher LTV and similar DTI.

Fannie Mae Freddie Mac Ginnie Mae All

First-Time Repeat First-Time Repeat First-Time Repeat First-Time Repeat

Loan Amount ($ ) 235,562 268,300 229,525 248,102 211,101 248,633 222,701 256,151 

Credit Score 735.1 751.5 740.1 754.7 676.7 699.0 708.6 738.5

LTV (%) 88.4 79.6 86.1 78.4 96.6 95.2 91.8 83.4

DTI (%) 37.2 37.6 36.0 36.9 42.9 43.6 39.6 39.0

Loan Rate (%) 5.0 4.9 5.0 4.9 5.0 4.9 5.0 4.9

Sources: eMBS and Urban Institute. 

Note: In May 2017 Ginnie Mae began disclosing issuer-reported LTV for FHA loans, which includes the financed upfront mortgage insurance 

premium. To make it consistent with the previously reported LTV, we removed the financed upfront mortgage insurance premium by 

subtracting 169 bps from this new issuer-reported LTV. Data as of February 2019.

21
Credit Box

77.9%

56.0%

78.3%

71.3%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19

First-time homebuyer share (%)

First Time Homebuyer Share: 

Ginnie Mae Purchase Only Loans Breakdown by Source

FHA VA Other All

Sources: eMBS and Urban Institute. Note: Data as of February 2019. “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing and 

the Department of Agriculture’s Rural Development. In May 2017 Ginnie Mae began disclosing issuer-reported LTV for FHA loans, which includes the 

financed upfront mortgage insurance premium. To make it consistent with the previously reported LTV, we removed the financed upfront mortgage 

insurance premium by subtracting 169 bps from this new issuer-reported LTV. 

Within the Ginnie Mae purchase market, 77.9 percent of FHA loans, 56.0 percent of VA loans and 78.3 percent of 

other loans represent financing for first time home buyers in February 2019. The bottom table shows that based 

on mortgages originated in February 2019, the average first-time homebuyer was more likely than an average 

repeat buyer to take out a smaller loan, have a lower credit score, higher LTV and lower DTI.

FHA VA Other Ginnie Mae Total

First-Time Repeat First-Time Repeat First-Time Repeat First-Time Repeat

Loan Amount ($) 205,147 218,577 238,979 284,608 138,925 153,234 211,101 248,633 

Credit Score 668.8 672.9 696.0 726.7 700.5 684.6 676.7 699.0

LTV (%) 95.5 93.9 99.7 96.4 99.2 98.3 96.6 95.2

DTI (%) 43.8 44.5 41.3 42.8 35.4 36.7 42.9 43.6

Loan Rate (%) 5.1 5.0 4.9 4.7 4.9 5.1 5.0 4.9

Sources: eMBS and Urban Institute. Note: Data as of February 2019.

22
Credit Box

Sources: Credit Bureau Data and Urban Institute. 

Note: Data as of August 2017.

FICO Score Distribution: Mortgage Owners vs All Consumers

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

300-500500-520520-540540-560560-580580-600600-620620-640640-660660-680680-700700-720720-740740-760760-780780-800800-820820-850

All Consumers Mortgage owners

All Consumers- Percentiles

Minimum P5 P10 P25 P50 P75 P90 P95 Maximum

300 503 524 587 682 774 813 822 839

Mortgage Owners- Percentiles

Minimum P5 P10 P25 P50 P75 P90 P95 Maximum

300 570 615 682 752 801 818 824 839

Consumers who have a mortgage are concentrated at the high end of the general credit score spectrum. The top 

table shows that the median FICO score for all consumers (682) is equal to the 25th percentile of those with a 

mortgage (682).

23
Debt,

household 

mortgages,

$9,833

Purchase FICO

Number of Loans P10 P25 Median P75 P90 Mean

All 200,991 642 680 731 775 797 724 

Fannie 72,499 680 712 752 783 800 745 

Freddie 57,245 686 720 758 787 801 750 

Ginnie 71,247 620 642 674 721 768 683 

Refi FICO

Number of Loans P10 P25 Median P75 P90 Mean

All 96,830 640 676 720 765 792 717 

Fannie 41,290 660 692 732 772 796 730 

Freddie 30,683 667 700 741 776 797 735 

Ginnie 24,857 605 636 670 709 753 673 

All FICO

Number of Loans P10 P25 Median P75 P90 Mean

All 297,821 641 678 727 772 796 722 

Fannie 113,789 671 704 745 780 799 739 

Freddie 87,928 679 712 752 784 800 745 

Ginnie 96,104 616 641 673 717 765 680 

Purchase FICO: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 71,247 620 642 674 721 768 683 

FHA 46,546 615 637 664 698 737 670 

VA 22,367 628 658 710 763 793 710 

Other 2,334 631 657 697 740 770 697 

Refi FICO: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 24,857 605 636 670 709 753 673 

FHA 14,050 597 627 657 690 725 659 

VA 10,774 620 651 690 735 772 691 

Other 33 581 605 652 697 736 656 

All FICO: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 96,104 616 641 673 717 765 680 

FHA 60,596 610 635 662 696 734 667 

VA 33,141 626 655 702 755 789 703 

Other 2,367 630 657 696 740 770 696 

February 2019 Credit Box at a Glance

Sources: eMBS and Urban Institute. Note: “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing and the Department of 

Agriculture’s Rural Development.Data as of February 2019.

In February 2019, the median Ginnie Mae FICO score was 673 versus 745 for Fannie and 752 for Freddie. Note that 

the FICO score for the 10th percentile was 616 for Ginnie Mae, versus 671 for Fannie and 679 for Freddie. Within the 

Ginnie Mae market, FHA loans have a median FICO score of 662, VA loans have a median FICO score of 702 and 

other loans have a median FICO score of 696.

24
February 2019 Credit Box at a Glance

Debt,

household 

mortgages,

$9,833

Purchase LTV

Number of Loans P10 P25 Median P75 P90 Mean

All 201,287 70.0 80.0 95.0 96.5 99.8 87.2 

Fannie 72,568 65.0 80.0 85.0 95.0 97.0 83.3 

Freddie 57,287 60.0 75.0 80.0 95.0 95.0 80.8 

Ginnie 71,432 92.4 96.5 96.5 100.0 102.0 96.2 

Refi LTV

Number of Loans P10 P25 Median P75 P90 Mean

All 97,067 43.0 59.0 74.0 80.4 92.0 69.9 

Fannie 41,298 40.0 55.0 69.0 78.0 80.0 64.4 

Freddie 30,687 39.0 54.0 69.0 78.0 80.0 64.5 

Ginnie 25,082 67.7 80.9 86.5 97.0 100.0 85.5 

All LTV

Number of Loans P10 P25 Median P75 P90 Mean

All 298,354 56.0 75.0 85.0 96.5 97.0 81.6 

Fannie 113,866 50.0 68.0 80.0 90.0 97.0 76.4 

Freddie 87,974 49.0 67.0 80.0 90.0 95.0 75.1 

Ginnie 96,514 82.4 92.6 96.5 99.8 101.0 93.4 

Purchase LTV: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 71,432 92.4 96.5 96.5 100.0 102.0 96.2 

FHA 46,672 92.8 96.5 96.5 96.5 96.5 95.1 

VA 22,408 91.1 100.0 100.0 102.2 103.0 98.2 

Other 2,352 93.9 98.7 101.0 101.0 102.0 99.0 

Refi LTV: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 25,082 67.7 80.9 86.5 97.0 100.0 85.5 

FHA 14,090 66.2 78.9 86.5 86.5 96.6 81.9 

VA 10,958 70.0 84.7 95.7 100.0 102.2 90.2 

Other 34 67.5 77.1 85.9 98.0 98.7 83.6 

All LTV: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 96,514 82.4 92.6 96.5 99.8 101.0 93.4 

FHA 60,762 82.3 89.9 96.5 96.5 96.5 92.1 

VA 33,366 81.7 95.0 100.0 101.0 103.0 95.6 

Other 2,386 93.2 98.7 101.0 101.0 102.0 98.8 

Sources: eMBS and Urban Institute. Note: “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing and the Department of 

Agriculture’s Rural Development. In May 2017 Ginnie Mae began disclosing issuer-reported LTV for FHA loans, which includes the financed 

upfront mortgage insurance premium. To make it consistent with the previously reported LTV, we removed the financed upfront mortgage 

insurance premium by subtracting 169 bps from this new issuer-reported LTV. Data as of February 2019.

In February 2019, the median loan-to-value ratio (LTV) was 96.5 percent for Ginnie Mae, and 80 percent for both 

Fannie Mae and Freddie Mac. The 90th percentile was 101 percent for Ginnie Mae, and 95-97 percent for Fannie 

Mae and Freddie Mac. Within the Ginnie Mae market, the median LTV was 96.5 for FHA, 100.0 for VA and 101.0 for 

other programs. 

25
Debt,

household 

mortgages,

$9,833

Purchase DTI

Number of Loans P10 P25 Median P75 P90 Mean

All 200,973 25.0 32.7 40.0 46.0 50.0 39.0 

Fannie 72,567 24.0 31.0 39.0 45.0 48.0 37.2 

Freddie 57,285 23.0 30.0 38.0 44.0 48.0 36.2 

Ginnie 71,121 30.2 37.0 44.0 50.1 54.8 43.1 

Refi DTI

Number of Loans P10 P25 Median P75 P90 Mean

All 93,510 24.0 31.0 39.0 45.0 49.0 37.8 

Fannie 40,836 23.0 30.0 38.0 45.0 48.0 36.8 

Freddie 30,464 22.0 29.0 37.0 43.0 47.0 35.9 

Ginnie 22,210 28.4 35.6 43.5 49.7 54.4 42.2 

All DTI

Number of Loans P10 P25 Median P75 P90 Mean

All 294,483 25.0 32.0 40.0 46.0 50.0 38.6 

Fannie 113,403 23.0 31.0 39.0 45.0 48.0 37.1 

Freddie 87,749 23.0 30.0 38.0 44.0 48.0 36.1 

Ginnie 93,331 29.8 36.7 43.9 50.0 54.7 42.9 

Purchase DTI: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 71,121 30.2 37.0 44.0 50.1 54.8 43.1 

FHA 46,666 31.6 38.4 44.9 50.8 54.9 44.0 

VA 22,213 28.3 35.2 42.5 49.3 54.7 42.0 

Other 2,242 26.4 31.5 36.6 40.5 43.3 35.6 

Refi DTI: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 22,210 28.4 35.6 43.5 49.7 54.4 42.2 

FHA 12,562 29.2 36.5 44.3 50.0 54.6 42.8 

VA 9,637 27.5 34.7 42.4 49.1 54.1 41.5 

Other 11 16.2 20.1 26.7 40.8 41.0 29.6 

All DTI: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 93,331 29.8 36.7 43.9 50.0 54.7 42.9 

FHA 59,228 31.0 38.0 44.8 50.7 54.8 43.7 

VA 31,850 28.0 35.0 42.5 49.2 54.5 41.8 

Other 2,253 26.4 31.5 36.5 40.5 43.3 35.6 

February 2019 Credit Box at a Glance

Sources: eMBS and Urban Institute. Note: “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing and the Department of 

Agriculture’s Rural Development. Data as of February 2019.

In February 2019, the median Ginnie Mae debt-to-income ratio (DTI) was 43.9 percent, considerably higher than the 

38-39 percent median DTI for Fannie Mae and Freddie Mac. The 90th percentile for Ginnie Mae was 54.7 percent, 

also much higher than the 48 percent DTI for the GSEs. Within the Ginnie Mae market, the median FHA DTI ratio 

was 44.8 percent, versus 42.5 percent for VA and 36.5 percent for other lending programs. 

26
Credit Box: Historical

660

680

700

720

740

760

780

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

FICO Scores

FICO Scores for Purchase Loans 

Freddie Median FICO Fannie Median FICO

Ginnie Median FICO All Median FICO

660

680

700

720

740

760

780

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

FICO Scores for Refinance Loans

Freddie Median FICO Fannie Median FICO

Ginnie Median FICO All Median FICO

745

752

673

727

660

680

700

720

740

760

780

Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19

FICO Scores

FICO Scores for All Loans

Freddie Median FICO Fannie Median FICO Ginnie Median FICO All Median FICO

Sources: eMBS and Urban Institute. Note:Data as of February 2019. Sources: eMBS and Urban Institute. Note: Data as of February 2019.

Sources: eMBS and Urban Institute. Note: Data as of February 2019.

The median FICO score for all agency MBS originated in January was 727, slightly higher than in January 2019. 

The figures show that the median FICO score for Ginnie Mae borrowers has always been considerably lower 

than for GSE borrowers. The difference between Ginnie Mae and GSE borrowers is wider in purchase loans 

than in refi loans.

27
Credit Box: Historical

96.5

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

Oct-13

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

Loan-to-Value Ratio

LTV Ratio for All Loans

Freddie Median LTV Fannie Median LTV Ginnie Median LTV All Median LTV

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

LTV Ratio for Refinance Loans

Freddie Median LTV Fannie Median LTV

Ginnie Median LTV All Median LTV

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Loan-to-Value Ratio

LTV Ratio for Purchase Loans

Freddie Median LTV Fannie Median LTV

Ginnie Median LTV All Median LTV

Median LTVs for Ginnie Mae loans have historically been at 96.5 percent, much higher than the 80 percent 

LTVs for the GSEs. Through time, both Ginnie Mae and GSE refinances have LTVs about 6-16 points lower 

than their purchase counterparts. 

Sources: eMBS and Urban Institute. Note: In May 2017 Ginnie Mae began disclosing issuer-reported LTV for FHA loans, which includes the 

financed upfront mortgage insurance premium. To make it consistent with the previously reported LTV, we removed the financed upfront mortgage 

insurance premium by subtracting 169 bps from this new issuer-reported LTV. Sources and note apply to all three graphs. Data as of February 

2019.

85

80

28
Credit Box: Historical

38.0

39.0

43.7

40.0

32.0

34.0

36.0

38.0

40.0

42.0

44.0

46.0

Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19

Debt-to-Income Ratio

DTI Ratio for All Loans

Freddie Median DTI Fannie Median DTI Ginnie Median DTI All Median DTI

30.0

32.0

34.0

36.0

38.0

40.0

42.0

44.0

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

DTI Ratio for Refinance Loans 

Freddie Median DTI Fannie Median DTI

Ginnie Median DTI All Median DTI

30.0

32.0

34.0

36.0

38.0

40.0

42.0

44.0

46.0

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Debt-to-income Ratio

DTI Ratio for Purchase Loans

Freddie Median DTI Fannie Median DTI

Ginnie Median DTI All Median DTI

Sources: eMBS and Urban Institute. Note:Data as of February 2019.

Sources: eMBS and Urban Institute. 

Note:Data as of February 2019.

Sources: eMBS and Urban Institute. 

Note:Data as of February 2019.

Median debt-to-income ratios on Ginnie Mae loans have historically been in the low 40s, considerably higher 

than for the GSEs. DTIs have been inching up over the past two years for both Ginnie Mae and GSE loans, with 

the movement more pronounced for Ginnie Mae. Increases in DTI are very typical in an environment of rising 

interest rates and rising home prices. As interest rates have stabilized over the last few months, GSE DTIs have 

stabilized, while Ginnie DTIs continue to creep up.

29
95%

86%

67%

49%

36%

95%

81%

56%

39%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<640 640–680 680–700 700–750 ≥ 750

94%

86%

68%

50%

35%

94%

80%

58%

40%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<640 640–680 680–700 700–750 ≥ 750

December 2016− February 2017 December 2018−February 2019

Credit Box: Historical

DTI < 35

Sources: eMBS and Urban Institute.

Ginnie Mae Share of Agency Market by DTI and FICO for Loans with LTV ≥ 95 

35 ≤ DTI < 45 

98% 97%

91%

84%

71%

98%

93%

79%

61%

47%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<640 640–680 680–700 700–750 ≥ 750

Credit score

Credit score

Credit score

DTI ≥ 45

This table shows Ginnie Mae’s share of agency high-LTV lending by credit score and FICO. In each DTI bucket, 

Ginnie Mae’s share is more concentrated in lower FICO scores than in higher FICO scores. In the Dec 2018-Feb 

2019 period, Ginnie Mae accounted for 94 percent of agency issuance for DTIs under 35 and FICOs below 640, 

compared to just 32 percent for DTIs below 35 and FICO 750 and higher. The Ginnie/GSE split in the 35-45 DTI 

bucket looks a lot like the below 35 percent DTI bucket. Ginnie Mae’s share of issuance was higher for DTIs of 45 

and above, as compared with the two lower DTI buckets. Ginnie Mae share of loans with a DTI of 45 and above 

and a FICO of 680-700 was 79 percent; it was 56-58 percent for the same FICO in the lower DTI buckets. 

Comparing this period to 2 years earlier, it is clear that GSEs have stepped up their higher LTV lending in all but 

the lowest FICO buckets; taking market share from Ginnie Mae. 

30
High LTV Loans: Ginnie Mae vs. 

GSEs

Sources: eMBS and Urban Institute.

December 2016− February 2017

FICO

DTI <640 640–680 680–700 700–750 ≥ 750 All

< 35 2.9% 6.2% 3.5% 8.4% 10.1% 31.0%

35 −45 5.0% 10.3% 5.6% 12.3% 10.2% 43.3%

≥ 45 3.3% 7.8% 3.7% 6.7% 4.2% 25.7%

All 11.2% 24.2% 12.8% 27.3% 24.5% 100.0%

December 2018− February 2019

FICO

DTI <640 640–680 680–700 700–750 ≥ 750 All

< 35 2.7% 4.2% 2.3% 6.2% 7.9% 23.4%

35 −45 5.5% 8.8% 4.7% 11.2% 9.9% 40.0%

≥ 45 5.5% 9.6% 4.7% 9.8% 7.0% 36.6%

All 13.8% 22.5% 11.7% 27.3% 24.8% 100.0%

Agency Market Share by DTI and FICO for Loans with LTV ≥ 95

Share of Loans with LTV ≥ 95

Ginnie Mae GSE All

December 2016− February 2017 70.3% 12.0% 27.4%

December 2018−February 2019 69.9% 21.4% 37.5%

Ginnie Mae dominates high-LTV lending, with 69.9 percent of its Dec 2018−Feb 2019 issuances having LTVs of 

95 or above, compared to 21.4 percent for the GSEs. The GSEs have increased their high-LTV lending share from 

12.0 percent in Dec 2016−Feb 2017, while Ginnie Mae has seen a slight decline, down from 70.3 percent in the 

Dec 2016−Feb 2017 period. As home price appreciation and interest rates have increased, the share of high-DTI 

lending (loans with DTI ≥ 45) has increased across the FICO spectrum.

31
Nonbank Originators

Sources: eMBS and Urban Institute

Note:Data as of February 2019.

Sources: eMBS and Urban Institute. Note: “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing and the Department of Agriculture’s Rural 

Development. Data as of February 2019.

The nonbank origination share has been generally increasing since 2013. In February 2019, the Ginnie Mae 

nonbank originator share fell slightly to 81 percent, still considerably higher than the GSEs’ 54-55 percent 

share. For Ginnie Mae, the nonbank share for refis was higher than for purchases. The differences were more 

modest for the GSEs.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct-13

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

Nonbank Origination Share: All Loans

All Fannie Freddie Ginnie

81%

63%

55%

54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

All Fannie Freddie Ginnie

Nonbank Origination Share: 

Refinance Loans

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

All Fannie Freddie Ginnie

Nonbank Origination Share: 

Purchase Loans

32
Ginnie Mae Nonbank Originators 

Sources: eMBS and Urban Institute

Note:Data as of February 2019.

Sources: eMBS and Urban Institute. Note: “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing and the Department of Agriculture’s Rural 

Development. Data as of February 2019.

In February 2019, Ginnie Mae’s nonbank share stood at 81 percent, just off the historical high reached in 

December 2018. The nonbank originator share for FHA declined slightly to 87 percent, also just below the 

historical high reached in December 2018. The nonbank originator share for VA was 73 percent, and the 

nonbank originator share for other loans, which can fluctuate quite a bit month to month, fell to 67 percent.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct-13

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

Non-bank originator share

Ginnie Mae Nonbank Originator Share: All Loans

All FHA VA Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Non-bank originator share

Ginnie Mae Nonbank Share: 

Purchase Loans

All FHA VA Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Ginnie Mae Nonbank Share: 

Refinance Loans

All FHA VA Other

87%

81%

73%

67%

33
Sources: eMBS and Urban Institute. 

Note: Data as of February 2019. 

Sources: eMBS and Urban Institute. 

Note: Data as of February 2019. 

727

745

715

680

690

700

710

720

730

740

750

760

770

Oct-13

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

Agency FICO: Bank vs. Nonbank

FICO All Median FICO Bank Median FICO Nonbank Median FICO

Sources: eMBS and Urban Institute. Note: Data as of February 2019. 

650

670

690

710

730

750

770

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

All Median FICO

Bank Median FICO

Nonbank Median FICO

Ginnie Mae FICO: Bank vs. 

Nonbank

650

670

690

710

730

750

770

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

All Median FICO Bank Median FICO

Nonbank Median FICO

GSE FICO: Bank vs. Nonbank

Nonbank Credit Box

FICO FICO

Nonbank originators have played a key role in opening up access to credit. The median GSE and the median Ginnie Mae 

FICO scores for loans originated by nonbanks are lower than their bank counterparts. Within the GSE space, both bank 

and nonbank FICOs have declined since 2014 with a further relaxation in FICOs since early 2017. In contrast, within 

the Ginnie Mae space, FICO scores for bank originations have increased since 2014 while nonbank FICOs have 

declined. This largely reflects the sharp cut-back in FHA lending by many banks. 

34
Sources: eMBS and Urban Institute. Note: Data as of February 2019. Sources: eMBS and Urban Institute. Note: Data as of February 2019. 

66

68

70

72

74

76

78

80

82

84

86

88

90

Jan-14

May-14

Sep-14

Jan-15

May-15

Sep-15

Jan-16

May-16

Sep-16

Jan-17

May-17

Sep-17

Jan-18

May-18

Sep-18

Jan-19

GSE LTV: Bank vs. Nonbank

All Median LTV Bank Median LTV

Nonbank Median LTV

Sources: eMBS and Urban Institute. Note: Data as of February 2019. 

90

91

92

93

94

95

96

97

98

99

100

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

All Median LTV Bank Median LTV

Nonbank Median LTV

Sources: eMBS and Urban Institute. Note: Data as of February 2019. 

30

32

34

36

38

40

42

44

46

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

All Median DTI Bank Median DTI

Nonbank Median DTI

30

32

34

36

38

40

42

44

46

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

GSE DTI: Bank vs. Nonbank

All Median DTI Bank Median DTI

Nonbank Median DTI

Nonbank Credit Box

Ginnie Mae LTV: Bank vs. Nonbank

Ginnie Mae DTI: Bank vs. Nonbank

LTV LTV

DTI DTI

The median LTV ratios for loans originated by nonbanks are similar to that of their bank counterparts, while the median 

DTIs for nonbank loans are higher, indicating that nonbanks are more accommodating in this dimension as well as in 

the FICO dimension. Note that since early 2017, there has been a measurable increase in DTIs. This is true for both 

bank and non-bank originations. Rising DTIs are to be expected amid rising rates and strong house price appreciation.

35
650

660

670

680

690

700

710

720

730

740

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

FICO scores

Ginnie Mae VA FICO Scores: Bank 

vs. Nonbank

VA All Median FICO VA Bank Median FICO

VA Nonbank Median FICO

Ginnie Mae Nonbank Originators: 

Credit Box

Sources: eMBS and Urban Institute

Note:Data as of February 2019.

Sources: eMBS and Urban Institute

Note: “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing 

and the Department of Agriculture’s Rural Development. Data as of February 2019.

The FICO scores for Ginnie Mae bank and nonbank originators fell in February 2019. The spread in the FICO 

scores between banks and nonbanks is near the widest level since 2013. The gap between banks and non-banks 

is very apparent in all programs backing Ginnie Mae securities: FHA, VA, and Other.

650

660

670

680

690

700

710

720

730

740

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

FICO score

Ginnie Mae FICO Scores: 

Bank vs. Nonbank

All Median FICO Bank Median FICO

Nonbank Median FICO

650

660

670

680

690

700

710

720

730

740

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Ginnie Mae FHA FICO Scores: 

Bank vs. Nonbank

FHA All Median FICO FHA Bank Median FICO

FHA Nonbank Median FICO

650

660

670

680

690

700

710

720

730

740

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Ginnie Mae Other FICO Scores: 

Bank vs. Nonbank

Other All Median FICO Other Bank Median FICO

Other Nonbank Median FICO

Sources: eMBS and Urban Institute Note:Data as of February 2019. Sources: eMBS and Urban Institute Note:Data as of February 2019.

36
90

92

94

96

98

100

102

104

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Loan-to-value ratio

Ginnie Mae VA LTV: Bank vs. 

Nonbank

VA All Median LTV VA Bank Median LTV

VA Nonbank Median LTV

Ginnie Mae Nonbank Originators: 

Credit Box

Sources: eMBS and Urban Institute

Note:Data as of February 2019.

Sources: eMBS and Urban Institute

Note: “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing 

and the Department of Agriculture’s Rural Development. Data as of February 2019.

An analysis of the loans backing Ginnie Mae origination indicates that there are virtually no differences in 

median LTV ratios between bank originated loans and nonbank originated loans. 

90

91

92

93

94

95

96

97

98

99

100

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Loan-to-value ratio

Ginnie Mae LTV: 

Bank vs. Nonbank

All Median LTV Bank Median LTV

Nonbank Median LTV

90

91

92

93

94

95

96

97

98

99

100

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Ginnie Mae FHA LTV: Bank vs. 

Nonbank

FHA All Median LTV FHA Bank Median LTV

FHA Nonbank Median LTV

90

92

94

96

98

100

102

104

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Ginnie Mae Other LTV: Bank vs. 

Nonbank

Other All Median LTV Other Bank Median LTV

Other Nonbank Median LTV

Sources: eMBS and Urban Institute Note:Data as of February 2019. Sources: eMBS and Urban Institute Note:Data as of February 2019.

37
34

35

36

37

38

39

40

41

42

43

44

45

46

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

FICO scores

Ginnie Mae VA DTI: Bank vs. 

Nonbank

VA All Median DTI VA Bank Median DTI

VA Nonbank Median DTI

Ginnie Mae Nonbank Originators: 

Credit Box

Sources: eMBS and Urban Institute

Note:Data as of February 2019.

Sources: eMBS and Urban Institute

Note: “Other“ refers to loans insured by HUD’s Office of Public and Indian Housing 

and the Department of Agriculture’s Rural Development. Data as of February 2019.

An analysis of borrowers’ DTI ratios for bank versus non-bank originators indicates that the former have a 

lower median DTI. The DTIs for FHA and VA loans experienced notable increases since early 2017 for both 

bank and nonbank originations, while the Other origination DTIs stayed relatively flat. Rising DTIs are expected 

in a rising rate environment.

34

35

36

37

38

39

40

41

42

43

44

45

46

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

FICO score

Ginnie Mae DTI: 

Bank vs. Nonbank

All Median DTI Bank Median DTI

Nonbank Median DTI

34

35

36

37

38

39

40

41

42

43

44

45

46

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Ginnie Mae FHA DTI: Bank vs. 

Nonbank

FHA All Median DTI FHA Bank Median DTI

FHA Nonbank Median DTI

34

35

36

37

38

39

40

41

42

43

44

45

46

Oct-13

Feb-14

Jun-14

Oct-14

Feb-15

Jun-15

Oct-15

Feb-16

Jun-16

Oct-16

Feb-17

Jun-17

Oct-17

Feb-18

Jun-18

Oct-18

Feb-19

Ginnie Mae Other DTI: Bank vs. 

Nonbank

Other All Median DTI Other Bank Median DTI

Other Nonbank Median DTI

Sources: eMBS and Urban Institute Note:Data as of February 2019. Sources: eMBS and Urban Institute Note:Data as of February 2019.

38
Holders of Ginnie Mae MSRs

Sources: eMBS and Urban Institute. Note:Data as of February 2019.

Top 30 Holders of Ginnie Mae Mortgage Servicing Rights (MSRs), by UPB

Rank MSR Holder UPB ($ millions) Share Cumulative Share

1 Wells Fargo $272,823 15.8% 15.8%

2 Lakeview $179,202 10.4% 26.2%

3 PennyMac $174,094 10.1% 36.3%

4 Freedom Home Mortgage $119,508 6.9% 43.2%

5 Nationstar $87,693 5.1% 48.3%

6 Quicken Loans $65,007 3.8% 52.1%

7 US Bank $60,755 3.5% 55.6%

8 JPMorgan Chase $56,136 3.3% 58.8%

9 Caliber Home Loans $45,323 2.6% 61.5%

10 Carrington Home Mortgage $43,613 2.5% 64.0%

11 USAA Federal Savings Bank $37,176 2.2% 66.1%

12 NewRez $28,507 1.7% 67.8%

13 Navy Federal Credit Union $24,214 1.4% 69.2%

14 Midfirst Bank $24,089 1.4% 70.6%

15 The Money Source $21,422 1.2% 71.8%

16 Amerihome Mortgage $20,337 1.2% 73.0%

17 Ditech Financial $18,378 1.1% 74.1%

18 Suntrust $18,346 1.1% 75.1%

19 Loan Depot $17,080 1.0% 76.1%

20 Home Point Financial $16,876 1.0% 77.1%

21 Branch Banking and Trust $16,200 0.9% 78.0%

22 Guild Mortgage $15,700 0.9% 78.9%

23 Pingora $14,974 0.9% 79.8%

24 Ocwen $13,346 0.8% 80.6%

25 Roundpoint $13,208 0.8% 81.4%

26 Flagstar Bank $12,537 0.7% 82.1%

27 Bank of America $12,464 0.7% 82.8%

28 Citizens Bank $11,562 0.7% 83.5%

29 PNC $11,131 0.6% 84.1%

30 Planet Home Lending $9,706 0.6% 84.7%

This table shows 30 largest owners of mortgage servicing rights (MSR) by UPB for Ginnie Mae securitizations. As 

of February 2019, over half (52.1 percent) of the Ginnie Mae MSRs are owned by the top six firms. The top 30 

firms collectively own 84.7 percent. Eighteen of these 30 are non-depositories, the remaining 12 are depository 

institutions. 

39
62.8%

0%

10%

20%

30%

40%

50%

60%

70%

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

Share of outstanding loans by UPB

The composition of the largest owners of Ginnie Mae MSR has evolved quite a bit over time. In December 2013, 

Wells Fargo and JP Morgan Chase were the two largest owners of Ginnie Mae MSRs, holding $375 billion and 

$139 billion in servicing UPB respectively. Although Wells Fargo is still the largest player, its portfolio has shrunk 

to $273 billion. Lakeview, PennyMac, Freedom Home Mortgage, and Nationstar (all nonbanks) make up the 

remainder of the top five largest holders of MSRs, owning $179 billion, $174 billion, $120 billion, and $87 billion 

respectively as of January 2019. JPMorgan Chase is no longer in the top five. As of February 2019, nonbanks 

collectively owned servicing rights for 62.8 percent of all outstanding unpaid principal balance guaranteed by 

Ginnie Mae. In December 2013, the nonbank share was much smaller at 27.7 percent. 

Holders of Ginnie Mae MSRs

Sources: eMBS and Urban Institute. Note: Data as of February 2019.

Share of Ginnie Mae MSRs held by Nonbanks

Top 5 MSR Holders: Outstanding Ginnie Mae Loans by UPB

$272,823

$179,202

$174,094

$119,508

$87,693

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

1. Wells Fargo 2. Lakeview

3. PennyMac 4. Freedom Home Mortgage

UPB ($ millions) 5. Nationstar

40
Prepayments

0%

5%

10%

15%

20%

25%

30%

35%

Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19

Constant Prepayment Rate (%)

2011 Issued 4.0 Coupon CPR

Fannie 2011 4.0 Coupon CPR Freddie 2011 4.0 Coupon CPR Ginnie II 2011 4.0 Coupon CPR

Sources: Credit Suisse and Urban Institute. Note:Data as of March 2019.

Sources: Credit Suisse and Urban Institute. Note:Data as of March 2019.

Prepayments on Ginnie Mae securities were lower than on GSE securities from 2011 through early-2013, but 

have been higher since. These increased Ginnie speeds reflect the growing share of VA loans, which tend to 

prepay faster than either FHA or GSE loans. In addition, FHA puts fewer restrictions on streamlined refinances, 

and unlike GSE streamline refinances, requires no credit report and no appraisal. Some of the upfront mortgage 

insurance premium can also be applied to the refinanced loan. Moreover, both FHA and VA permit refinancing of 

existing mortgages after 6 months, while the GSEs do not allow refinancing for a year. 

With the increase in interest rates since November 2016, the prepayment speeds for all agencies have 

slowed down considerably. Over the past 18 months, with the bulk of the mortgage universe finding it noneconomical to refinance, the small month to month variation in speeds reflects seasonality, changes in day count 

and changes in rates. With the recent drop in interest rates, we should see some pick up in prepayment activity, 

as was apparent this month, but expect it to remain muted as long as mortgage rates remain above 4 percent.

11%

9%

0%

5%

10%

15%

20%

25%

30%

Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19

Constant prepayment rate (%)

Aggregate Prepayments

Fannie CPR Freddie CPR Ginnie I CPR Ginnie II CPR

12%

10%

9%

7%

41
Prepayments

0%

5%

10%

15%

20%

25%

30%

35%

Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17 Nov-17 Mar-18 Jul-18 Nov-18 Mar-19

Constant Prepayment Rate (%)

2015 Issued 3.5 Coupon CPR

Fannie 2015 3.5 Coupon CPR Freddie 2015 3.5 Coupon CPR Ginnie II 2015 3.5 Coupon CPR

0%

2%

4%

6%

8%

10%

12%

14%

Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

Constant Prepayment Rate (%)

2016 Issued 3.0 Coupon CPR

Fannie 2016 3.0 Coupon CPR Freddie 2016 3.0 Coupon CPR Ginnie II 2016 3.0 Coupon CPR

Sources: Credit Suisse and Urban Institute. Note: Data as of March 2019.

Sources: Credit Suisse and Urban Institute. Note: Data as of March 2019.

The 2015 Ginnie II 3.5s and the 2016 Ginnie II 3.0s, the largest coupon cohorts of those vintage years, have 

prepaid consistently faster than their conventional counterparts. 2015 and 2016 originations are more heavily 

VA loans than the 2011 origination shown on the preceding page. VA loans prepay faster than either FHA or GSE 

loans. The FHA streamlined programs are likely another contributor to the faster speeds.

After a sharp mortgage rate increase in November 2016, the prepayment speeds of Ginnie Mae and 

conventional loans both fell dramatically. Over the past year, with the bulk of the mortgage universe finding it 

non-economic to refinance, the muted month to month variations in speeds reflect seasonality, changes in day 

count and changes in mortgage interest rates. With mortgage rates above 4 percent, we expect prepayments to 

stay low relative to recent past.

11%

7%

13%

9%

42
Prepayments

0%

2%

4%

6%

8%

10%

12%

14%

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

Constant Prepayment Rate (%)

2018 Issued 4.0 Coupon CPR

Fannie 2018 4.0 Coupon CPR Freddie 2018 4.0 Coupon CPR Ginnie II 2018 4.0 Coupon CPR

0%

2%

4%

6%

8%

10%

12%

Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

Constant Prepayment Rate (%)

2017 Issued 3.5 Coupon CPR

Fannie 2017 3.5 Coupon CPR Freddie 2017 3.5 Coupon CPR Ginnie II 2017 3.5 Coupon CPR

Sources: Credit Suisse and Urban Institute. Note: Data as of March 2019.

Sources: Credit Suisse and Urban Institute. Note: Data as of March 2019.

Ginnie Mae securities season more slowly than their conventional counterparts; they generally have lower 

prepayments in the early months. The charts below show the behavior of the 2017-issued 3.5s and the 2018-

issued 4.0s, the largest coupon cohorts of those vintage years. Despite slower seasoning, 2017 Ginnie II 3.5s 

have been prepaying faster than their conventional counterparts since late 2017, due primarily to fast VA 

prepayment speeds. In comparison, the 2018 Ginnie II 4.0s have, for the most part, prepaid slower than their 

conventional counterparts. Speeds picked up for all 2018 4.0s towards the end of 2018 through March 2019, 

likely driven by falling mortgage rates since November.

10%

7%

12% 

9%

43
Prepayments

0%

5%

10%

15%

20%

25%

30%

35%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Constant Prepayment Rate (%)

2017 Issued 4.0 Coupon CPR, by Loan Age

Fannie 2017 4.0 Coupon CPR Freddie 2017 4.0 Coupon CPR Ginnie II 2017 4.0 Coupon CPR

Loan age

Sources: Credit Suisse and Urban Institute. Note: Data as of March 2019.

Sources: Credit Suisse and Urban Institute. Note: Data as of March 2019.

The charts below show the prepayment speeds by loan age for 2017 Ginnie II 4.0s and 2018 Ginnie II 4.5s—the 

cohorts 50 basis points above the largest coupon cohort for those years. Prepayment speeds on the 2017 

Ginnie II 4.0s jumped up sharply at the 7-9 month loan age, reflecting abuse of the VA Streamlined Refi 

program (IRRRL). The 2018 Ginnie II 4.5s do not show increased speeds until the 9-10 month point; reflecting 

both the effect of lower rates and the actions taken by both Ginnie Mae and the VA in H1 2018 to curb this 

abuse. Ginnie Mae actions have included suspending a few servicers whose VA prepayment speeds are 

especially high from selling VA loans into Ginnie Mae II securities, as well as rewriting the pooling 

requirements so that if loans that do not meet the seasoning requirement are refinanced, the new loan is 

ineligible for securitization. In addition, VA has implemented a net tangible benefit test, requiring the lender to 

show the borrower has obtained a benefit from the refinance.

15.0%

11.7%

11.3%

0%

5%

10%

15%

20%

25%

30%

35%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Constant Prepayment Rate (%)

2018 Issued 4.5 Coupon CPR, by Loan Age

Fannie 2018 4.5 Coupon CPR Freddie 2018 4.5 Coupon CPR Ginnie II 2018 4.5 Coupon CPR

Loan age

26.2%

15.2%

11.0%

44
Reverse Mortgage Volumes

$0.49

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$ Billions

HMBS Issuance Volume

$55.0

$0

$10

$20

$30

$40

$50

$60

Aug-11

Oct-11

Dec-11

Feb-12

Apr-12

Jun-12

Aug-12

Oct-12

Dec-12

Feb-13

Apr-13

Jun-13

Aug-13

Oct-13

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

$ Billions

HMBS Outstanding 

Other Ginnie Mae Programs

Sources: Ginnie Mae and Urban Institute. Note: Data as of February 2019.

Sources: Ginnie Mae and Urban Institute. Note: Data as of February 2019.

Ginnie Mae reverse mortgage issuance has been volatile in recent months. The February 2019 volume 

decreased to $0.49 billion, near the lower end of the range in recent years. Issuance has been declining since 

early 2018 largely due to the implementation of the new, lower principal limit factors. In February 2019, 

outstanding reverse mortgage securities totaled $55.0 billion.

45
Multifamily Market

$1.2

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

Aug-11

Oct-11

Dec-11

Feb-12

Apr-12

Jun-12

Aug-12

Oct-12

Dec-12

Feb-13

Apr-13

Jun-13

Aug-13

Oct-13

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

$ Billions

Ginnie Mae Multifamily MBS Issuance

$119.1

$0

$20

$40

$60

$80

$100

$120

$140

Aug-11

Oct-11

Dec-11

Feb-12

Apr-12

Jun-12

Aug-12

Oct-12

Dec-12

Feb-13

Apr-13

Jun-13

Aug-13

Oct-13

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

$ Billions

Ginnie Mae Multifamily MBS Outstanding 

Other Ginnie Mae Programs

Sources: Ginnie Mae and Urban Institute. Note: Data as of February 2019.

Sources: Ginnie Mae and Urban Institute. Note: Data as of February 2019.

Ginnie Mae multifamily issuance volume in February 2019 totaled $1.2 billion, below average issuance levels 

over the past 18 months. Outstanding multifamily securities totaled $119.1 billion in February.

46
Market Conditions

Sources: SIFMA and Urban Institute. Note: Data as of March 2019.

$250 

$605 

$39 

$0

$100

$200

$300

$400

$500

$600

$700

1997 2000 2003 2006 2009 2012 2015 2018

$ Billions

Average Daily Fixed Income Trading Volume by Sector

SF Agency MBS trading vol ($B) Treasury trading volume ($B) Corporates trading volume ($B)

3.77%

3.87%

0.43% 0%

2%

4%

6%

8%

10%

12%

14%

1997 2000 2003 2006 2009 2012 2015 2018

Percent

Average Daily Turnover by Sector 

Agency MBS Turnover Treasury Turnover Corporates Turnover

Agency MBS trading volume was $250 billion/day on average 2019 YTD, more robust than in the 2014-2018 

period. Agency MBS turnover in 2019 YTD also has been slightly higher than the 2014-2018 period; in the first 

two months of 2019, average daily MBS turnover was 3.77 percent, above the 2018 average of 3.39 percent. 

Both average daily mortgage and Treasury turnover are down from their pre-crisis peaks. Corporate turnover is 

miniscule relative to either Agency MBS or Treasury turnover. 

Sources: SIFMA and Urban Institute. Note: Data as of March 2019.

47
Market Conditions

$221.7

150

200

250

300

350

400

450

500

550

600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

$ Billions

Repo Volume: Securities In

$55.7

0

10

20

30

40

50

60

70

80

90

100

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

$ Billions

Dealer Net Positions: Federal Agency and GSE MBS

Sources: Federal Reserve Bank of New York Primary Dealer Statistics and Urban Institute. Note: Data as of March 2019.

Sources: Federal Reserve Bank of New York Primary Dealer Statistics and Urban Institute. Note: Data as of March 2019.

Dealer net positions in agency MBS are down from the 2012-2013 time period, but remain within historic 

ranges. Gross dealer positions are likely to have fallen more than net positions. The volume of repurchase 

activity is up slightly from the near 13-year low in 2017. The large decline through time reflects banks cutting 

back on lower margin businesses. 

48
MBS Ownership

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007Q4 2008Q4 2009Q4 2010Q4 2011Q4 2012Q4 2013Q4 2014Q4 2015Q4 2016 Q4 2017 Q4 2018 Q4

GSEs

Commercial Banks

Federal Reserve

Broker/Dealers

REITs

Other

Who owns Total Agency Debt?

Mutual Funds

Money Market and Pension Funds

Sources: Federal Reserve Flow of Funds and Urban Institute. Note: Data as of Q4 2018.

Credit Unions

Foreign Investors

The largest holders of agency debt (Agency MBS + Agency notes and bonds) include the Federal Reserve (18 

percent), commercial banks (20 percent) and foreign investors (12 percent). The broker/dealer and GSE shares 

are a fraction of what they once were. 

Share of Total Agency Debt by Owner

49
MBS Ownership

Debt,

household 

mortgages,

$9,833

Sources: Federal Reserve Flow of Funds and Urban Institute. Note: Data as of Q4 2018.

73.0%

50%

55%

60%

65%

70%

75%

2006Q4 2007Q4 2008Q4 2009Q4 2010Q4 2011Q4 2012Q4 2013Q4 2014Q4 2015Q4 2016 Q4 2017 Q4 2018 Q4

Percent of MBS over Outstanding Agency Debt

MBS Share of Total Agency Debt

Sources: Federal Reserve Bank and Urban Institute. Note: Data as of March 2019.

As Fannie and Freddie reduce the size of their retained portfolio, fewer agency notes and bonds are required to 

fund that activity, hence the MBS share of total agency debt increases. As of Q4 2018, the MBS share of total 

agency debt stood at 73.0 percent. Commercial banks are now the largest holders of Agency MBS. Out of their $1.9 

trillion in holdings as of the end of March 2019, $1.4 trillion was held by the top 25 domestic banks.

Commercial Bank Holdings ($Billions) Week Ending

Feb-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar 6 Mar 13 Mar 20 Mar 27

Largest Domestic 

Banks 1,279.0 1,318.4 1,318.7 1,319.8 1,332.8 1,360.1 1,389.4 1,399.0 1,404.9 1,409.3 1,412.9 1,420.7

Small Domestic 

Banks 480.6 485.4 486.0 484.8 482.2 485.3 490.6 491.9 494.8 495.9 484.7 494.5

Foreign Related 

Banks 31.4 24.9 23.0 23.5 24.6 27.7 25.4 25.4 25.0 24.6 25.1 26.6

Total, 

Seasonally

Adjusted 1,791.0 1,828.7 1,827.7 1,828.1 1,839.6 1,873.1 1,905.4 1,916.3 1,924.7 1,929.8 1,922.7 1,941.8

50
MBS Ownership

Debt,

household 

mortgages,

$9,833

Top Bank & Thrift Residential MBS Investors Total ($MM) GSE PT ($MM)

GNMA PT 

($MM)

Agency REMIC 

($MM)

Non-Agency 

($MM)

Market 

Share

1 Bank of America Corporation $315,763 $185,917 $118,080 $11,650 $116 17.4%

2 Wells Fargo & Company $238,434 $166,422 $65,471 $3,781 $2,760 13.1%

3 JP Morgan Chase & Co. $93,937 $61,690 $23,431 $296 $8,520 5.2%

4 U S. Bancorp. $79,863 $48,123 $12,299 $19,441 $0 4.4%

5 Charles Schwab Bank $79,492 $38,334 $15,571 $25,587 $1 4.4%

6 Capital One Financial Corporation $66,307 $52,145 $4,230 $7,272 $2,660 3.7%

7 Citigroup Inc. $65,827 $28,208 $14,551 $22,121 $947 3.6%

8 Bank of New York Mellon Corp. $51,632 $30,689 $1,723 $17,794 $1,426 2.8%

9 PNC Bank, National Association $46,819 $37,955 $3,736 $2,764 $2,365 2.6%

10 Branch Banking and Trust Company $37,433 $12,083 $15,350 $7,397 $2,603 2.1%

11 State Street Bank and Trust Company $36,720 $12,175 $5,865 $18,175 $505 2.0%

12 E*TRADE Bank $23,817 $10,707 $7,298 $5,812 $0 1.3%

13 HSBC Banks USA, National Association $23,627 $7,173 $6,314 $10,138 $3 1.3%

14 KeyBank National Association $23,311 $1,682 $898 $20,731 $0 1.3%

15 SunTrust Bank $23,161 $10,942 $3,657 $8,561 $0 1.3%

16 Morgan Stanley $22,797 $11,612 $11,185 $0 $0 1.3%

17 Ally Bank $20,098 $11,126 $3,341 $3,079 $2,552 1.1%

18 The Northern Trust Company $17,468 $10,356 $4,365 $2,745 $2 1.0%

19 MUFG Union Bank $16,899 $5,323 $3,925 $6,787 $865 0.9%

20 Regions Bank $16,247 $2,409 $4,593 $9,245 $0 0.9%

Total Top 20 $1,299,653 $745,069 $325,884 $203,376 $25,325 71.7%

Sources: Inside Mortgage Finance and Urban Institute. Note: Data as of Q4 2018.

Out of the $1.8 trillion in MBS holdings at banks and thrifts as of Q4 2018, $1.4 trillion was agency pass-through: 

$980.6 trillion in GSE pass-throughs and $380.4 billion in Ginnie Mae pass-throughs. Another $419.6 billion was 

agency CMOs, while non-agency holdings totaled $37.38 billion. After three quarters of successive decline, MBS 

holdings at banks and thrifts increased in Q4, 2018. This increase came from Ginnie Mae and GSE pass-throughs, as 

well as agency CMOs. 

All Banks & Thrifts ($Billions)

Total Agency MBS PT GSE PT GNMA PT Agency CMO Private MBS PT Private CMO

2000 $683.90 $392.85 $234.01 $84.26 $198.04 $21.57 $71.43 

2001 $810.50 $459.78 $270.59 $109.53 $236.91 $37.62 $76.18 

2002 $912.36 $557.43 $376.11 $101.46 $244.98 $20.08 $89.88 

2003 $982.08 $619.02 $461.72 $75.11 $236.81 $19.40 $106.86 

2004 $1,113.89 $724.61 $572.40 $49.33 $208.18 $20.55 $160.55 

2005 $1,139.68 $708.64 $566.81 $35.92 $190.70 $29.09 $211.25 

2006 $1,207.09 $742.28 $628.52 $31.13 $179.21 $42.32 $243.28 

2007 $1,236.00 $678.24 $559.75 $31.58 $174.27 $26.26 $357.24 

2008 $1,299.76 $820.12 $638.78 $100.36 $207.66 $12.93 $259.04 

2009 $1,345.74 $854.40 $629.19 $155.00 $271.17 $7.53 $212.64 

2010 $1,433.38 $847.13 $600.80 $163.13 $397.30 $7.34 $181.61 

2011 $1,566.88 $917.10 $627.37 $214.81 $478.82 $3.28 $167.70 

2012 $1,578.86 $953.76 $707.87 $242.54 $469.27 $17.16 $138.67 

2013 $1,506.60 $933.73 $705.97 $231.93 $432.60 $26.11 $114.15 

2014 $1,539.32 $964.16 $733.71 $230.45 $449.90 $20.33 $104.94 

2015 $1,643.56 $1,115.40 $823.10 $292.30 $445.39 $11.14 $71.63 

1Q16 $1,660.58 $1,133.29 $833.25 $300.04 $448.63 $10.27 $68.39 

2Q 16 $1,684.33 $1,169.67 $867.64 $302.03 $440.25 $9.11 $65.29 

3Q16 $1,732.36 $1,227.52 $924.81 $302.71 $435.77 $7.90 $61.17 

4Q16 $1,736.93 $1,254.13 $930.67 $323.46 $419.80 $7.40 $55.60

1Q17 $1,762.38 $1,280.63 $950.72 $329.91 $419.34 $7.03 $55.39 

2Q17 $1,798.66 $1,320.59 $985.12 $335.47 $417.89 $6.38 $53.79 

3Q17 $1,838.93 $1,364.75 $1,012.89 $351.86 $418.08 $5.65 $50.45

4Q17 $1,844.15 $1,378.53 $1,010.83 $367.70 $413.97 $4.63 $47.01 

1Q18 $1,809.98 $1,352.28 $991.57 $360.71 $412.37 $3.92 $41.37

2Q18 $1,806.58 $1,345.80 $976.92 $368.88 $414.41 $7.45 $38.92

3Q18 $1,794.39 $1,339.72 $966.52 $373.21 $416.20 $2.42 $36.04 

4Q18 $1,814.97 $1,361.00 $980.56 $380.43 $419.59 $2.69 $34.69 

Bank and Thrift Residential MBS Holdings

51
MBS Ownership

$991.3

$405.2

$586.1

0

200

400

600

800

1,000

1,200

Dec-13

Feb-14

Apr-14

Jun-14

Aug-14

Oct-14

Dec-14

Feb-15

Apr-15

Jun-15

Aug-15

Oct-15

Dec-15

Feb-16

Apr-16

Jun-16

Aug-16

Oct-16

Dec-16

Feb-17

Apr-17

Jun-17

Aug-17

Oct-17

Dec-17

Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

$ Billions

Monthly Agency MBS Holdings by Foreigners

Total Agency MBS Held by Foreigners Foreign Official MBS Foreign Private MBS

Sources: Treasury International Capital (TIC) and Urban Institute. Note: Data as of December 2018. In December 2017, there was a data 

correction that moved about $120 billion from privately held U.S. agency bonds to officially held U.S. agency bonds; this resulted in a series 

break at December 2017 in the split between the portion held by foreign private and the portion held by foreign official.

Sources: SIFMA and Treasury International Capital (TIC). Note: Data as of Q32018.

14.9%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

Q1 2012Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018

Percent of Agency MBS Owned by Foreigners

Foreign Share of Agency MBS

Foreign investors held 14.9 percent of agency MBS in Q4 2018, up from a low of 11.8 percent in Q1 2014. For 

the month of December 2018, this represents $991.3 billion in Agency MBS; $405.2 billion held by foreign 

private institutions and $586.1 billion held by foreign official investors. 

52
MBS Ownership

Agency MBS+ Agency Debt

Agency MBS Only (Estimates)

Sources :Treasury International Capital (TIC) and Urban Institute. 

Note: *calculated based on June 2017 report with amount asset backed per country. Revised to include Top 10 holders of MBS listed as of June 

2017. Monthly data as of December 2018.

The largest foreign holders of Agency MBS are Taiwan, Japan and China; these three comprise around 70 

percent of all foreign holdings. Since December 2017, the three increased their holdings by 27.0 billion, 21.7 

billion, and 18.2 billion, respectively.

Levelof Holdings ($Millions)* Change in Holdings ($Millions)*

Country Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18

Q3 

2017

Q4 

2017

Q1 

2018

Q2 

2018

Q3 

2018

Q4 

2018

Taiwan 227,195 229,030 234,234 245,182 249,451 250,639 261,231 1,835 5,204 10,948 4,269 1,188 10,592

China 228,466 244,261 241,067 246,344 248,837 254,511 262,772 15,795 -3,194 5,277 2,493 5,674 8,261

Japan 183,393 177,580 170,702 173,169 180,820 190,203 188,921 -5,813 -6,878 2,467 7,651 9,383 -1,282

Ireland 46,791 47,581 45,467 44,099 44,167 43,944 44,735 790 -2,114 -1,368 68 -223 791

South Korea 44,229 46,648 51,525 49,164 47,662 48,220 48,045 2,419 4,877 -2,361 -1,502 558 -175

Luxembourg 31,289 33,026 37,575 39,336 37,111 38,800 50,079 1,737 4,549 1,761 -2,225 1,689 11,279

Bermuda 32,682 29,016 28,374 29,026 29,760 31,638 31,379 -3,666 -642 652 734 1,878 -259

Cayman Islands 26,767 27,125 28,904 28,055 27,350 27,610 28,004 358 1,779 -849 -705 260 394

Switzerland 17,312 18,675 16,794 13,063 11,813 11,908 10,827 1,363 -1,881 -3,731 -1,250 95 -1,081

Netherlands 12,365 13,162 12,751 12,139 12,754 12,874 12,671 797 -411 -612 615 120 -203

Rest of World 129,723 124,357 125,465 124,266 122,885 129,082 129,085 -5,366 1,108 -1,199 -1,381 6,197 3

Total 980,212 990,461 992,858 1003843 1012610 1,039,429 1,067,749 10,249 2,397 10,985 8,767 26,819 28,320

Levelof Holdings ($Millions)* Change in Holdings ($Millions)*

Country Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18

Q3 

2017

Q4 

2017

Q1 

2018

Q2 

2018

Q3 

2018

Q4 

2018

Taiwan 227,073 228,914 234,127 245,069 249,349 250,539 261,127 1,841 5,213 10,942 4,280 16,412 10,587

China 221,528 237,689 234,985 239,898 243,028 248,842 256,843 16,161 -2,704 4,914 3,129 13,857 8,001

Japan 177,546 172,042 165,576 167,737 175,924 185,425 183,924 -5,504 -6,465 2,161 8,187 19,849 -1,501

Ireland 33,891 35,362 34,158 32,114 33,365 33,403 33,710 1,471 -1,204 -2,044 1,251 -755 307

South Korea 33,663 36,640 42,262 39,348 38,815 39,586 39,015 2,977 5,623 -2,914 -533 -2,676 -571

Luxembourg 28,314 30,208 34,967 36,572 34,620 36,369 47,537 1,894 4,759 1,605 -1,952 1,402 11,167

Bermuda 24,897 21,642 21,549 21,793 23,241 25,277 24,726 -3,255 -93 244 1,448 3,727 -551

Cayman Islands 23,156 23,705 25,738 24,700 24,326 24,659 24,918 549 2,034 -1,038 -374 -1,079 259

Switzerland 13,867 15,412 13,774 9,862 8,928 9,093 7,883 1,545 -1,638 -3,911 -934 -4,681 -1,210

Netherlands 11,905 12,726 12,348 11,712 12,369 12,498 12,278 821 -379 -636 657 150 -220

Rest of World 94,872 91,345 94,913 91,888 93,703 100,604 99,301 -3,527 3,567 -3,024 1,815 5,692 -1,303

Total 890,712 905,684 914,397 920,694 937,669 966,296 991,261 14,972 8,713 6,297 16,975 51,899 24,965

53
0

50

100

150

200

250

300

350

400

Nov-08

Feb-09

May-09

Aug-09

Nov-09

Feb-10

May-10

Aug-10

Nov-10

Feb-11

May-11

Aug-11

Nov-11

Feb-12

May-12

Aug-12

Nov-12

Feb-13

May-13

Aug-13

Nov-13

Feb-14

May-14

Aug-14

Nov-14

Feb-15

May-15

Aug-15

Nov-15

Feb-16

May-16

Aug-16

Nov-16

Feb-17

May-17

Aug-17

Nov-17

Feb-18

May-18

Aug-18

Nov-18

Feb-19

$ Billions

Total Fed Absorption

Total Fed Purchases Gross Issuance

MBS Ownership

0

50

100

150

200

250

Feb-11

Aug-11

Feb-12

Aug-12

Feb-13

Aug-13

Feb-14

Aug-14

Feb-15

Aug-15

Feb-16

Aug-16

Feb-17

Aug-17

Feb-18

Aug-18

Feb-19

$ Billions

Fed Absorption of GSE MBS

Gross Issuance Total Fed Purchases

Sources: eMBS, Federal Reserve Bank of New York and Urban Institute. Note: Data as of February 2019.

Sources: eMBS, Federal Reserve Bank of New York and Urban 

Institute. Note: Data as of February 2019.

Sources: eMBS, Federal Reserve Bank of New York and Urban Institute. 

Note: Data as of February 2019.

0

10

20

30

40

50

60

70

Feb-11

Aug-11

Feb-12

Aug-12

Feb-13

Aug-13

Feb-14

Aug-14

Feb-15

Aug-15

Feb-16

Aug-16

Feb-17

Aug-17

Feb-18

Aug-18

Feb-19

$ Billions

Fed Absorption of Ginnie Mae MBS

Total Fed Purchases Gross Issuance

The Federal Reserve is actively winding down its mortgage portfolio, absorbing very little new issuance. During 

the period October 2014-September 2017, the Fed ended its purchase program, but was reinvesting proceeds 

from mortgage and agency debt into the mortgage market, absorbing 20-30 percent of agency gross issuance. In 

October 2017, the Fed began to taper their mortgage holdings, initially letting securities run off at the rate of $4 

billion per month in Q4, 2017; $8 billion per month in Q1, 2018; $12 billion per month in Q2; $16 billion per 

month in Q3; and $20 billion per month ins Q4, 2018 and thereafter. With the Fed now at its maximum taper, Fed 

absorption of gross issuance is 0.4 percent. 

54
All the information contained in this document is as of date Indicated unless otherwise noted. The

information provided does not constitute investment advice and it should not be relied on as such. All

information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed.

The views expressed in this material are the views of the staff of the Urban Institute's Housing Finance 

Policy Center and State Street Global Advisors as of February 19, 2019 and are subject to change based

on market and other conditions. The views should not be attributed to the Urban Institute, its trustees, 

or its funders. This document contains certain statements that may be deemed forward‐looking

statements. Please note that any such statements are not guarantees of any future performance and

actual results or developments may differ materially from those projected.   

© 2019 State Street Corporation. All Rights Reserved.

 2515916.1.1.GBL.INST 

Expiration Date: 4/30/2020