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 11

HPI by state 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

Annual Agency Gross Issuance 17

Annual Agency Net Issuance 18

Monthly Agency Issuance 19

Purchase versus refi: Percent Refi at Issuance 20

Credit Box 

First time home buyer share—purchase only loans 21

First time home buyer share— Ginnie Mae purchase only loans 22

FICO score distribution 23

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

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

Ginnie Mae Nonbank Originators

Nonbank originator share (All, Purchase, Refi) 30

Bank vs. nonbank originators historical credit box, Ginnie Mae vs. GSE (FICO, LTV, DTI) 31-32

Bank vs. nonbank originators historical credit box, Ginnie Mae breakdown (FICO, LTV, DTI) 33-35

Prepayments 

Aggregate 36

Select coupon/origination year cohorts 37-38

Other Ginnie Mae Programs

HMBS 39

Multifamily 40

Market Conditions-Agency MBS

Average daily trading volume and turnover by sector 41

Dealer net positions, repo volume 42

MBS Ownership

Ownership breakdown of total agency debt 43

MBS share of total agency debt and commercial bank ownership of MBS 44

Bank and Thrift Residential MBS Holdings 45

Foreign ownership of MBS 46-47

Fed Ownership of MBS 48
HIGHLIGHTS

Ginnie Mae Announced their Strategic Plan through 2020

Ginnie Mae has recently published their strategic plan through 2020, the 50th anniversary of the issuance of 

Ginnie Mae’s first mortgage backed security (MBS). The U.S. housing finance systems has changed 

dramatically over the past decade, requiring Ginnie Mae to evolve in order to continue to play its critical 

role of funding government mortgages that provide credit to many borrowers who might have otherwise 

had difficulty obtaining financing. This group includes first time homebuyers, minority borrowers, low-andmoderate-income borrowers, veteran borrowers, rural borrowers, and borrowers with lower downpayments. 

The strategic plan has three main pillars:

• Modernizing the MBS program and platform

• Enhancing the management of counterparty risk

• Demonstrating the ability to innovate

Ginnie Mae doesn’t directly issue MBS, but provides the platform and program for the issuers to fulfill the 

mission. Thus, Ginnie Mae is putting steps into place to streamline and enhance the user experience, adopt 

the data standards set out by the Mortgage Industry Standards Maintenance Organization (MISMO) and 

modernize the IT infrastructure. Ginnie Mae is also committed to developing the capabilities to securitize 

digital mortgages. 

As nonbank originators play an increasingly larger role in the Ginnie Mae market (nonbanks were 79 

percent of Ginnie Mae origination in May, as demonstrated on page 30 of this publication), and operate with 

a wider credit box (pages 31-35), Ginnie Mae is stepping up its efforts to manage counterparty risk. This 

includes additional standards for leverage and financing, new acceptable risk parameters, as well as 

potentially limiting exposure to weaker counterparties. Counteracting counterparty risk requires ensuring 

liquidity. Ginnie Mae is exploring whether they can change the way advances to Ginnie Mae are handled to 

make it easier to finance the servicing asset in the event of a servicer failure. Ginnie Mae is also evaluating 

how a broader range of market participants could own servicing assets, bringing more capital into the 

system. 

Finally, Ginnie Mae wants a focus on innovation, which means testing new ideas for responding to market 

needs. Ginnie Mae is exploring three possible initiatives (1) the feasibility of introducing loan level servicing 

transfers, (2) a pilot to transfer some the government’s credit risk exposure, and (3) development of a whole 

loan sale or securitization vehicle for loans acquired from institutions that have failed, and had their 

Mortgage Servicing Rights extinguished. Read the full report here. 

Highlights this month:

• With the drop in the German bund yield, and slight increase in the yield on Ginnie Mae MBS, Ginnie Mae 

MBS hedged into euros now outyield bunds by a wider margin than was previously the case (page 8).

• First lien originations in Q1 2018 were down 16 percent year-over-year, mostly due to higher interest 

rates (page 16).

• The first-time homebuyer share of Ginnie Mae purchase loans reached the highest level in recent history 

in May 2018 (page 21).

• Ginnie Mae median FICO scores have been declining since early 2017 (pages 27 and 34).

• Fed absorption of gross agency issuance dropped to new low in May 2018; this is the lowest level since 

September of 2011, just before the Fed embarked on its second mortgage purchase program (page 49).
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

Sources: Bloomberg and State Street Global Advisors. 

Note: Data as of June 2018.

Sources: Bloomberg and State Street Global Advisors

Note: Data as of June 2018.

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

(38%) or the US Credit share (30%). Fannie Mae 30-year MBS comprises the largest percent of US MBS (10%), 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%) of the US MBS share. US 

securities are the largest single contributor to the Barclays Global Aggregate, accounting for 39 percent of the global 

total. US MBS comprises 11 percent of the global aggregate. 

38%

2%

30%

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%

11%

1%

3%

Global Treasury

Global Agency

Global Credit

US MBS

ABS & CMBS

Collateralised

(Pfandbrief)

4

2%

3% 1%

39%

32%

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 June 2018.

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

Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18

Yield (%)

Global 10-year Treasury Yields

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

5

-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

Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18

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

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18

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 June 2018.

Sources: Bloomberg and State Street Global Advisors

Note: Data as of June 2018.

Sources: Bloomberg and State Street Global Advisors. Note: Data as of June 2018.

US Treasury interest rates, as measured by the 10-year note, continue to be the highest in the developed world. The 

US 10-year Treasury note remained flat at 2.86 percent this month. Interest rates in Germany, Japan, and Italy all 

decreased to 0.30, 2.68, and 0.04, respectively, while interest rates in the UK increased to 1.28. If Treasury notes are 

hedged into foreign currencies, 10-year US Treasury yields are 29 basis points (bps) in JPY, and 8 bps in EUR. The 

hedged yield difference between the 10-year Treasuries and JGBs narrowed to 25 bps, and the hedged yield 

difference between the 10-year Treasuries and Bunds narrowed to -22 bps.

Yield(%)Yield(%)
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

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

G2SF CC yield & nominal spread, USD

6

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

Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18

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 June 2018.

Sources: Bloomberg and State Street Global Advisors. Note: Data as of June 2018.

The nominal yield on both the current coupon GNMA II and GNMA I securities increased slightly in June 2018. 

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

10-year Treasury yields) by 63 and 66 bps on G2SF and GNSF, respectively; this is very similar to their May 

levels.

Yield(%) Yield(%)

Yield(%)

Yield(%)
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

0.0

0.5

1.0

1.5

2.0

2.5

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

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

G2SF CC yield & nominal spread, JPY

7

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 June 2018.

Sources: Bloomberg and State Street Global Advisors. Note: Data as of June 2018.

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

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

yield more than the JGB 5/10 blend by 90 and 92 bps, respectively. These latest spreads have tightened 

compared to May values.

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18

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(%)
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

-0.5

0.0

0.5

1.0

1.5

2.0

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

G2SF CC yield & nominal spread, EUR

8

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

Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18

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 June 2018.

Sources: Bloomberg and State Street Global Advisors. Note: Data as of June 2018.

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

alternatives. The figures show that current coupon G2SF and GNSF hedged into euros yield more than the 

average of the German 5/10 blend by 65 and 67 bps, respectively. These latest spreads represent a 9-10 basis 

point widening from May levels.

Yield(%) Yield(%)

Yield(%) Yield(%)
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 June 2018.

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 4.6 2.74

US 10y 8.5 2.86

GNMA II 3% 6.6 3.34

GNMA II 3.5% 5.8 3.44

JPY 5y 4.7 -0.11

JPY 10y 9.9 0.05

GER 5y 4.8 -0.31

GER 10y 9.3 0.30

ITA 5y 4.5 1.72

ITA 10y 8.4 2.67

US credit 7.0 3.94

US credit >= A 7.3 3.79

US HY 3.9 6.49

Pan-Euro Corp 5.7 1.31

Pan-Euro HY 3.8 3.97

9

US 5y US 10y

G2 3.0%

G2 3.5%

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
Relative Attractiveness of US Fixed 

Income and Ginnie Mae MBS

Source: State Street

*A i max r

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 0.01 -0.05 -0.07 0.06 0.22 0.07

3 year 0.11 0.09 0.26 0.12 0.46 0.29

5 year 0.17 0.13 0.29 0.32 0.46 0.48

10 year 0.29 0.25 0.45 0.42 0.71 0.82

* ssumes 2% capital zation ma per issue

*Assumes 2% capital max per issuer

Source: State Street

dit Corp

Average Excess Return (Per Month)

Time Period US MBS 

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

1 year -0.11 -0.17 -0.18 0.12 0.10 0.14

3 year 0.05 0.03 0.20 0.18 0.40 0.35

5 year 0.14 0.09 0.26 0.35 0.42 0.52

10 year 0.27 0.23 0.43 0.42 0.68 0.82

ization ma

*Assume zatio ma

Source: State Street

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 0.58 0.79 0.82 0.39 0.60 0.77

3 year 0.53 0.91 1.04 0.97 1.58 1.40

5 year 0.61 0.90 1.07 0.97 1.45 1.23

10 year 0.76 1.18 1.75 1.38 2.99 3.49

* ssury um s 2% capitaldit Corp izati n m x per issuer

10

Sharpe Ratio

Time Period US MBS 

Ginnie Mae US Treasu US Credit Cor Pan Euro 

Credit Corp US High Yield Pan EuroHigh Yield*

1 year -0.18 -0.22 -0.22 0.32 0.17 0.18

3 year 0.09 0.03 0.19 0.18 0.26 0.25

5 year 0.23 0.10 0.24 0.36 0.29 0.42

10 year 0.36 0.19 0.24 0.30 0.23 0.24

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

Sources: BarclaysIndices, Bloomberg and State Street Global Advisors Note: Data as of June 2018.

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. The result: the excess return per unit of risk for the mortgage market is the highest of any 

market over the past decade, as measured by the Sharpe Ratio.
State of the US Housing Market

8.7%

6.9%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Oct-01

Apr-02

Oct-02

Apr-03

Oct-03

Apr-04

Oct-04

Apr-05

Oct-05

Apr-06

Oct-06

Apr-07

Oct-07

Apr-08

Oct-08

Apr-09

Oct-09

Apr-10

Oct-10

Apr-11

Oct-11

Apr-12

Oct-12

Apr-13

Oct-13

Apr-14

Oct-14

Apr-15

Oct-15

Apr-16

Oct-16

Apr-17

Oct-17

Apr-18

Year-over-year growth rate

National Year-Over-Year HPI Growth

CoreLogic HPI year-over-year Zillow HVI year-over-year

Sources: CoreLogic, Zillow, and Urban Institute. Note: Data as of April 2018.

11

1.16%

0.97%

4.22%

2.22%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

3Q051Q063Q061Q073Q071Q083Q081Q093Q091Q103Q101Q113Q111Q123Q121Q133Q131Q143Q141Q153Q151Q163Q161Q173Q171Q18

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 Q1 2018.

Serious Delinquency Rates: Single-Family Loans

Serious delinquencies for single-family GSE loans, FHA loans, and VA loans declined in Q1 2018, after last 

quarter’s seasonal and hurricane-related uptick. The delinquency rates for FHA and VA went down to 4.22 

percent and 2.22 percent, respectively, and delinquency rates for Fannie Mae and Freddie Mac went down to 

1.16 and 0.97 percent, respectively. GSE delinquencies remain high relative to 2005-2007, while FHA and VA 

delinquencies (which are higher than their GSE counterparts) are at levels lower than 2005-2007. Home price 

changes turned positive in 2012, and continues to increase approximately 7-9 percent per year, as measured by 

both CoreLogic and Zillow.
State of the US Housing Market

Debt,

sehold

D

hou

mort

$9,833

Sources: CoreLogic and Urban Institute. Note: 

tgages,

HPI data as of April 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 04/2018, the latest HPI data period.

Nationally, nominal home prices have improved by 55.4 percent since the trough, and have exceeded their pre-crisis 

peak valuation. However, the picture is very different for different states, with many states well in excess of the prior 

peak (as indicated by the negative numbers), while Nevada is 23.7 percent below peak levels and Connecticut is 22.3 

percent below peak levels.

12

HPI Changes

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

National 93.8% -33.1% 55.4% 6.9% -3.7%

Alabama 45.8% -19.9% 25.5% 3.9% -0.5%

Alaska 68.9% -9.4% 19.4% 2.8% -7.6%

Arizona 121.5% -50.5% 74.4% 6.9% 15.8%

Arkansas 39.8% -7.5% 16.9% 3.4% -7.5%

California 148.9% -42.4% 84.4% 8.9% -5.8%

Colorado 40.5% -13.7% 73.9% 8.7% -33.4%

Connecticut 79.6% -24.8% 8.7% 1.8% 22.3%

Delaware 90.3% -23.7% 20.9% 3.7% 8.4%

District of Columbia 150.5% -10.2% 40.2% 2.0% -20.5%

Florida 149.1% -49.6% 69.3% 5.8% 17.1%

Georgia 40.4% -30.8% 58.0% 5.8% -8.5%

Hawaii 152.0% -20.9% 48.1% 5.5% -14.6%

Idaho 85.3% -40.8% 83.8% 12.4% -8.1%

Illinois 59.9% -32.5% 31.9% 2.9% 12.4%

Indiana 24.4% -16.4% 32.6% 6.3% -9.8%

Iowa 25.5% -4.8% 21.6% 3.3% -13.6%

Kansas 33.2% -14.1% 32.2% 6.3% -11.9%

Kentucky 27.0% -8.9% 25.7% 5.2% -12.7%

Louisiana 59.1% -7.4% 22.9% 1.3% -12.1%

Maine 91.8% -16.5% 38.2% 9.0% -13.3%

Maryland 137.7% -31.1% 22.0% 3.1% 18.9%

Massachusetts 81.7% -21.1% 44.0% 6.3% -12.0%

Michigan 26.2% -43.1% 79.8% 7.5% -2.3%

Minnesota 69.7% -28.1% 48.0% 6.7% -6.0%

Mississippi 34.5% -19.3% 21.4% 3.7% 2.1%

Missouri 46.2% -22.2% 35.6% 6.6% -5.2%

Montana 79.9% -16.5% 43.0% 8.0% -16.3%

Nebraska 25.3% -5.2% 29.2% 4.5% -18.3%

Nevada 129.1% -59.9% 101.4% 12.2% 23.7%

New Hampshire 82.8% -23.8% 32.6% 4.2% -1.0%

New Jersey 109.5% -26.4% 17.0% 3.5% 16.1%

New Mexico 64.4% -26.4% 24.5% 5.4% 9.2%

New York 101.7% -13.9% 31.9% 5.6% -11.9%

North Carolina 39.8% -14.5% 30.8% 4.6% -10.5%

North Dakota 50.5% -1.8% 53.6% 7.7% -33.7%

Ohio 22.2% -20.3% 34.7% 7.1% -6.8%

Oklahoma 35.9% -3.1% 16.3% 2.1% -11.3%

Oregon 87.6% -29.2% 73.5% 7.0% -18.6%

Pennsylvania 71.7% -12.9% 17.3% 3.6% -2.1%

Rhode Island 130.9% -34.2% 37.2% 9.1% 10.8%

South Carolina 61.9% -22.1% 35.5% 5.3% -5.2%

South Dakota 37.0% -3.6% 33.1% 2.7% -22.1%

Tennessee 41.3% -13.2% 41.6% 7.2% -18.6%

Texas 39.5% -13.1% 51.3% 5.0% -23.9%

Utah 64.7% -31.6% 74.4% 11.5% -16.1%

Vermont 81.7% -9.4% 13.7% 3.2% -2.9%

Virginia 135.0% -30.5% 31.8% 2.3% 9.2%

Washington 90.3% -28.1% 81.5% 12.8% -23.4%

West Virginia 81.0% -26.9% 25.4% 2.8% 9.1%

Wisconsin 48.5% -17.3% 29.6% 5.8% -6.7%

Wyoming 76.0% -14.9% 29.0% 3.4% -8.9%
State of the US Housing Market

hou

Debt,

sehold

tgages,

$9,833

mor

Agency Issuance (past 1 year)

State Ginnie Mae Share Ginnie Mae Average

Loan Size (Thousands)

GSE Average Loan 

Size (Thousands)

Ginnie Mae 

Share

Agency Outstanding 

Ginnie Mae Average 

Loan Size (Thousands)

GSE Average Loan

Size (Thousands)

National 34.0% 213.1 229.2 32.2% 179.6 209.4

Alabama 45.5% 160.1 182.1 47.1% 142.7 169.4

Alaska 52.3% 281.9 245.3 52.0% 257.2 229.2

Arizona 34.5% 207.8 213.1 34.4% 177.7 192.5

Arkansas 44.6% 141.5 167.0 46.7% 123.4 153.8

California 28.0% 343.3 327.3 22.2% 287.7 294.1

Colorado 33.2% 279.5 270.1 30.2% 231.8 239.0

Connecticut 32.6% 214.3 226.5 29.9% 203.9 218.4

Delaware 39.7% 212.1 223.1 37.5% 199.0 208.7

District of Columbia 17.8% 407.0 355.9 17.4% 330.0 334.1

Florida 39.2% 208.8 204.9 36.7% 175.5 186.0

Georgia 41.6% 182.8 206.2 40.8% 156.0 187.3

Hawaii 40.0% 492.6 383.2 31.9% 422.0 347.7

Idaho 34.7% 194.2 198.5 34.9% 164.4 177.1

Illinois 26.9% 177.0 198.4 25.3% 156.2 183.8

Indiana 39.9% 140.8 156.2 39.5% 122.6 142.4

Iowa 26.9% 144.5 162.4 26.9% 126.0 149.6

Kansas 37.2% 154.5 175.4 37.0% 133.6 157.9

Kentucky 40.7% 149.1 166.2 40.1% 133.8 151.0

Louisiana 43.3% 169.0 193.6 43.5% 151.5 178.4

Maine 36.2% 182.5 198.0 33.1% 167.4 181.6

Maryland 44.7% 282.1 263.4 40.1% 253.9 247.9

Massachusetts 24.3% 288.8 280.5 19.8% 254.9 256.3

Michigan 26.3% 144.9 168.3 26.6% 124.2 152.3

Minnesota 25.9% 195.5 208.3 25.5% 171.0 191.2

Mississippi 51.1% 151.3 170.4 52.3% 132.9 158.7

Missouri 36.6% 150.5 172.0 36.5% 133.3 157.0

Montana 32.2% 213.3 215.4 31.6% 184.4 193.2

Nebraska 32.2% 160.8 169.9 35.3% 136.2 154.6

Nevada 38.4% 238.1 227.6 39.8% 199.3 200.8

New Hampshire 32.6% 230.9 223.1 30.2% 209.7 203.3

New Jersey 30.2% 248.6 263.9 28.2% 233.2 249.5

New Mexico 44.0% 178.0 186.9 44.1% 157.3 173.4

New York 27.1% 241.0 266.1 26.4% 206.5 243.9

North Carolina 35.2% 179.1 200.4 35.9% 155.9 185.3

North Dakota 28.4% 210.0 205.8 26.9% 181.8 187.0

Ohio 36.8% 141.2 156.8 37.7% 125.6 144.7

Oklahoma 47.2% 151.1 170.3 50.0% 132.2 157.7

Oregon 28.1% 251.2 255.0 25.5% 212.1 223.2

Pennsylvania 34.2% 167.1 192.8 33.8% 152.5 181.2

Rhode Island 38.6% 224.0 217.7 34.3% 202.0 203.7

South Carolina 40.6% 182.2 192.0 39.2% 159.5 178.2

South Dakota 37.7% 174.8 182.8 37.0% 155.8 166.3

Tennessee 41.5% 180.3 199.7 42.7% 151.6 179.5

Texas 35.8% 195.2 213.1 38.2% 155.2 192.6

Utah 30.4% 234.9 245.3 31.3% 203.3 220.5

Vermont 23.3% 193.6 196.3 20.0% 181.9 183.1

Virginia 45.8% 269.5 258.2 42.0% 244.2 244.7

Washington 31.4% 280.2 282.8 30.1% 234.8 246.0

West Virginia 49.0% 154.5 155.2 46.1% 139.4 147.1

Wisconsin 23.8% 164.9 174.9 21.7% 147.5 161.5

Wyoming 42.0% 211.2 209.2 41.5% 194.3 196.0

Sources: eMBS and Urban Institute. Note: Ginnie Mae share are based on loan balance as of May 2018.

Ginnie Mae loans constitute 32.2 percent of outstanding agency issuance by loan balance, 34.0 percent of the 

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

outstandings (as measured by loan balance) as low as 17.4 percent in the District of Columbia and as high as 52.3 

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

13
State of the US Housing Market

$10.6

$15.7

$26.4

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

Q1

$ Trillions

Value of the US Housing Market

14

Debt, household mortgages Household equity Total Value

Sources: Federal Reserve Flow of Funds and Urban Institute. Data as of Q1 2018.

$0.5

$0.6

$6.4

$3.2

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

Q1

$ 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, Fannie Mae, Freddie Mac, eMBS and Urban Institute.

Note: Unsecuritized first liens includes loans held by commercial banks, GSEs, savings institutions, and credit unions. Data as of Q1 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 Q1 was no different. While total debt and 

mortgages was stable at $10.6 trillion, household equity reached a new high of $15.7 trillion, bringing the total 

value of the housing market to $26.4 trillion, 10 percent higher than the pre-crisis peak in 2006. Agency MBS 

make up 59.3 percent of the total mortgage market, private-label securities make up 4.9 percent, and 

unsecuritized first liens at the GSEs, commercial banks, savings institutions, and credit unions make up 30.1 

percent. Second liens comprise the remaining 5.7 percent of the total.
State of the US Housing Market

As of May 2018, outstanding securities in the agency market totaled $6.47 trillion and were 43.6 percent Fannie 

Mae, 27.4 percent Freddie Mac, and 29.1 percent Ginnie Mae. Ginnie Mae has more outstandings than Freddie 

Mac. Within the Ginnie Mae market, VA has been growing very rapidly, and now comprises 33.5 percent of total 

Ginnie Mae outstandings.

$2.82

$1.77

$1.88

0.0

0.5

1.0

1.5

2.0

2.5

3.0

May-01

Nov-01

May-02

Nov-02

May-03

Nov-03

May-04

Nov-04

May-05

Nov-05

May-06

Nov-06

May-07

Nov-07

May-08

Nov-08

May-09

Nov-09

May-10

Nov-10

May-11

Nov-11

May-12

Nov-12

May-13

Nov-13

May-14

Nov-14

May-15

Nov-15

May-16

Nov-16

May-17

Nov-17

May-18

$ Trillions

Outstanding Agency Mortgage-Backed Securities

Fannie Mae Freddie Mac Ginnie Mae

Sources: eMBS and Urban Institute. Note: Data as of May 2018.

15

$1.1

$0.6

$0.1

0.0

0.2

0.4

0.6

0.8

1.0

1.2

May-01

Nov-01

May-02

Nov-02

May-03

Nov-03

May-04

Nov-04

May-05

Nov-05

May-06

Nov-06

May-07

Nov-07

May-08

Nov-08

May-09

Nov-09

May-10

Nov-10

May-11

Nov-11

May-12

Nov-12

May-13

Nov-13

May-14

Nov-14

May-15

Nov-15

May-16

Nov-16

May-17

Nov-17

May-18

$ Trillions

Outstanding Ginnie Mae Mortgage-Backed Securities

FHA VA Other

Sources: eMBS and Urban Institute Note: Data as of May 2018.
State of the US Housing Market

$0.18

$0.08

$0.01

$0.11

$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

Q1

$ trillions

First Lien Origination Volume

16

Portfolio

PLS securitization

FHA/VA securitization

GSE securitization

Sources: Inside Mortgage Finance and Urban Institute. Note: Data as of Q1 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

Q1

First Lien Origination Share

First lien originations totaled $380 billion in Q1 2018, down 16 percent from the first quarter of 2017, mostly due 

to high interest rates. The portfolio originations share was 28 percent, the GSE share was around 46 percent, and 

the FHA/VA share was around 23 percent, all consistent with 2017 shares. Origination of private-label securities 

was under just over 1 percent, slightly higher than the 2017 share.

Sources: Inside Mortgage Finance and Urban Institute. Note: Data as of Q1 2018. 

29.7%

1.1%

22.9%

46.3%
US Agency Market, Originations

Debt,

househol

mortgages,

se d

es

$9,833

Ginnie Mae Breakdown: Agency Gross Issuance

Issuance Year FHA VA Other Total Agency

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 YTD $87.8 $67.8 $6.7 $162.4

2018 % Change YOY -15.7% 0.3% -15.4% -9.7%

2018 Ann. $210.8 $162.8 $16.2 $389.8

17

Agency Gross Issuance

Issuance Year Fannie Mae Freddie Mac GSE Total Ginnie Mae Total Agency

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 YTD $198.5 $117.8 $316.3 $162.4 $478.7

2018 % Change YOY -6.5% -12.1% -8.7% -9.7% -9.0%

2018 Ann. $476.4 $282.8 $759.2 $389.8 $1,149.0

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 May 2018.

Agency gross issuance totaled $478.7 billion in the first five months of 2018, down by 9.0 percent compared to the 

same time period in 2017. Ginnie Mae gross issuance was down by 9.7 percent and GSE gross issuance was down 

by 8.7 percent. Within the Ginnie Mae market, FHA is down by 15.7 percent and VA origination is up by 0.3 

percent. The decline in origination volume is the result of higher interest rates.
US Agency Market, Originations

Debt,

$9,833

household

mortgages,

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 YTD $15.1 $24.1 $1.5 $40.7

2018 %Change YOY -33.5% -20.3% 15.1% -25.0%

2018 Ann. $36.3 $57.9 $3.5 $97.7

18

Agency Net Issuance

Issuance Year Fannie Mae Freddie Mac GSE Total Ginnie Mae Total Agency

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 YTD $31.5 $18.9 $56.6 $40.7 $91.2

2018 %Change YOY -12.8% -31.1% -20.7% -25.0% -22.7%

2018Ann. $75.7 $45.5 $135.8 $97.7 $218.9

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 May 2018.

Agency net issuance totaled $91.2 billion in the first five months of 2018, down 22.7 percent compared to 2017. 

Ginnie Mae net issuance was $40.7 billion, comprising 43.8 percent of total agency net issuance. Note that Ginnie 

Mae net issuance is down 25.0 percent compared to the first five months of 2017. Ginnie Mae net issuance in 2018 is 

comprised of 59.2 percent VA issuance, 37.1 percent FHA issuance and 3.7 percent other issuance.
US Agency Market, Originations

Debt,

sehold

D

hou

mort

$9,833

Sources: eMBS and Urban Institute.

tgages,

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 May 2018.

Agency gross issuance totaled $100.1 billion in May 2018, up slightly from $95.2 billion of issuance in April 2018, 

a seasonal effect. May 2018 levels were very much in line with May 2017 levels.

19

Date

Gross Issuance Net Issuance

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

Jan-15 $36.8 $22.9 $27.5 -$1.2 $0.8 $2.5

Feb-15 $35.4 $29.9 $23.9 $1.5 $10.1 $2.9

Mar-15 $44.8 $26.0 $30.7 $3.1 $1.1 $0.6

Apr-15 $49.3 $33.8 $40.6 -$1.2 $3.8 $4.3

May-15 $42.4 $33.2 $39.4 -$2.9 $6.6 $5.8

Jun-15 $44.6 $34.4 $40.5 $0.8 $8.3 $9.1

Jul-15 $46.0 $39.2 $45.6 $1.0 $12.3 $13.3

Aug-15 $39.4 $27.6 $43.4 -$2.2 $3.1 $14.9

Sep-15 $45.3 $30.4 $39.4 $7.6 $7.9 $12.7

Oct-15 $41.5 $28.4 $39.2 $4.8 $6.4 $12.4

Nov-15 $28.8 $23.3 $35.8 -$8.1 $1.3 $10.6

Dec-15 $39.7 $22.8 $30.3 $7.1 $3.2 $8.2

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Apr-18 $36.3 $26.2 $32.7 $1.71 $6.1 $9.1

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

Monthly Agency Issuance
US Agency Market, Originations

0%

1%

2%

3%

4%

5%

6%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Nov-04

May-05

Nov-05

May-06

Nov-06

May-07

Nov-07

May-08

Nov-08

May-09

Nov-09

May-10

Nov-10

May-11

Nov-11

May-12

Nov-12

May-13

Nov-13

May-14

Nov-14

May-15

Nov-15

May-16

Nov-16

May-17

Nov-17

May-18

Mortgage Rate

Percent Refi

Percent Refi at Issuance

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

20.3%

34.2%

1.7%

0%

10%

20%

30%

40%

50%

60%

70%

May-13

Jul-13

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

May-18

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 May 2018.

Sources: eMBS and Urban Institute.

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

Rural Development. Data as of May 2018.

The Ginnie Mae refi share stood at 23 percent in May 2018, below the 40 and 34 percent shares for Fannie Mae 

and Freddie Mac, respectively. Within Ginnie Mae, VA had the highest refi share at 34.2 percent in May 2018, 

followed by FHA’s 20.3 percent refi share. In May, the refinance share continued to sharply for all agencies. This is 

a result of increasing interest rates and the spring uptick in purchase activity. Loans sold into agency pools in May 

are based on March and April home sales.

20
Credit Box

40.6%

45.2%

72.4%

54.4%

20%

30%

40%

50%

60%

70%

80%

Sep-13 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

First-time homebuyer share (%)

First Time Homebuyer Share: Purchase Only Loans

Freddie Fannie Ginnie All

Sources: eMBS and Urban Institute. Note: Data as of May 2018.

The first time homebuyer share reached a new high in the Ginnie Mae market, comprising 72.4 percent of all 

purchase activity. 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 45.2 percent and 40.6 

percent of Fannie and Freddie purchase originations, respectively. The bottom table shows that based on 

mortgages originated in May 2018, the average first-time homebuyer was more likely than an average repeat 

buyer to take out a smaller loan and have a lower credit score, a much higher LTV and a similar DTI, thus 

requiring a higher interest rate.

21

Fannie Mae Freddie Mac Ginnie Mae All

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

Loan Amount ($ ) 233,547 263,053 233,498 252,179 202,117 251,292 217,436 256,097

Credit Score 737.2 753.8 741.0 753.6 678.0 699.0 707.7 738.2

LTV (%) 88.1 79.4 86.9 80.0 96.9 95.7 92.4 84.2

DTI (%) 36.8 37.1 35.6 36.5 41.8 42.7 39.1 38.5

Loan Rate (%) 4.7 4.6 4.6 4.6 4.7 4.6 4.7 4.6

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 May 2018.
Credit Box

78.9%

55.2%

80.6%

72.4%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

Sep-13 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

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 May 2018. “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, 78.9 percent of FHA loans, 55.2 percent of VA loans and 80.6 percent of 

other loans represent financing for first time home buyers. The bottom table shows that based on mortgages 

originated in May 2018, the average first-time homebuyer was more likely than an average repeat buyer to take 

out a smaller loan and have a lower credit score, and similar LTVs and DTIs, thus requiring a higher interest rate.

22

FHA VA Other Ginnie Mae Total

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

Loan Amount ($) 198,198 222,354 243,090 295,872 142,769 152,019 202,117 251,292

Credit Score 669.6 675.0 697.1 725.3 694.4 691.3 678.0 699.0

LTV (%) 95.6 94.2 99.9 96.7 99.4 99.7 96.9 95.7

DTI (%) 43.0 44.0 41.0 42.3 35.3 36.1 41.8 42.7

Loan Rate (%) 4.8 4.7 4.6 4.4 4.6 4.6 4.7 4.6

Sources: eMBS and Urban Institute. Note: Data as of May 2018.
Credit Box

Sources: Credit Bureau Data and Urban Institute. 

Note: Data as of August 2016.

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

300 502 524 583 676 772 813 822 839

23

Mortgage Owners ge Own - Percentiles

Minimum P5 P10 P25 P50 P75 P90 P95 Maximum

308 569 613 680 751 801 818 824 839

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 (676) is lower than the 25th percentile of those with a 

mortgage (680).
Debt,

mortgages,

house

m tg

$9,833

sehold

Purchase FICO

Number of Loans P10 P25 Median P75 P90 Mean

All 286,511 642 678 729 774 797 724

Fannie 99,157 681 716 755 785 801 747

Freddie 77,118 688 719 757 786 801 750

Ginnie 110,236 623 645 676 719 765 684

Refi FICO

Number of Loans P10 P25 Median P75 P90 Mean

All 138,569 643 679 723 768 794 720

Fannie 63,783 657 691 734 774 797 730

Freddie 43,296 669 701 741 776 798 736

Ginnie 31,490 607 639 675 718 762 679

All FICO

Number of Loans P10 P25 Median P75 P90 Mean

All 425,080 642 679 727 772 796 723

Fannie 162,940 669 705 748 782 800 741

Freddie 120,414 681 712 751 783 801 745

Ginnie 141,726 620 644 675 719 765 683

Purchase FICO: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 110,236 623 645 676 719 765 684

FHA 69,191 618 639 665 699 737 671

VA 30,936 631 660 708 761 792 710

Other 10,109 639 658 690 729 764 694

Refi FICO: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 31,490 607 639 675 718 762 679

FHA 16,595 599 629 661 697 737 664

VA 14,764 621 652 693 739 778 695

Other 131 601 649 689 740 773 689

All FICO: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 141,726 620 644 675 719 765 683

FHA 85,786 614 637 664 698 737 669

VA 45,700 628 658 702 755 789 705

Other 10,240 639 658 690 729 764 694

May 2018 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 May 2018.

In May 2018, the median Ginnie Mae FICO score was 675 versus 748 for Fannie and 751 for Freddie. Note that the 

FICO score for the 10th percentile was 620 for Ginnie Mae, versus 669 for Fannie and 681 for Freddie. Within the 

Ginnie Mae market, FHA loans have a median FICO score of 664, VA loans have a median FICO score of 702 and 

other loans have a median FICO score of 690.

24
May 2018 Credit Box at a Glance

Debt,

househ

mortga

$9,833

tgages,

sehold

Purchase

Number of Loans

LTV

P10 P25 Median P75 P90 Mean

All 286,883 73.0 80.0 95.0 96.5 100.0 87.9

Fannie 99,269 65.0 80.0 85.0 95.0 97.0 82.9

Freddie 77,154 64.0 79.0 80.0 95.0 95.0 82.0

Ginnie 110,460 93.7 96.5 96.5 100.0 102.0 96.6

Refi LTV

Number of Loans P10 P25 Median P75 P90 Mean

All 139,896 44.0 59.0 74.0 80.0 90.0 69.8

Fannie 63,805 40.0 55.0 69.0 78.0 80.0 65.0

Freddie 43,311 40.0 56.0 70.0 78.0 80.0 65.2

Ginnie 32,780 67.5 80.5 86.5 96.3 100.0 85.4

All LTV

Number of Loans P10 P25 Median P75 P90 Mean

All 426,779 57.0 75.0 85.0 96.5 98.1 82.0

Fannie 163,074 50.0 68.0 80.0 90.0 95.0 75.9

Freddie 120,465 51.0 69.0 80.0 90.0 95.0 76.0

Ginnie 143,240 83.8 94.6 96.5 100.0 101.0 94.0

Purchase LTV: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 110,460 93.7 96.5 96.5 100.0 102.0 96.6

FHA 69,318 94.0 96.5 96.5 96.5 96.5 95.3

VA 30,985 91.7 100.0 100.0 102.2 103.3 98.5

Other 10,157 95.5 99.2 101.0 101.0 102.0 99.5

Refi LTV: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 32,780 67.5 80.5 86.5 96.3 100.0 85.4

FHA 16,835 67.0 79.0 86.5 86.5 95.5 82.1

VA 15,777 67.9 82.5 92.9 100.0 102.2 88.8

Other 168 77.1 86.3 94.1 100.6 104.0 91.5

All LTV: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 143,240 83.8 94.6 96.5 100.0 101.0 94.0

FHA 86,153 84.3 93.6 96.5 96.5 96.5 92.7

VA 46,762 80.6 93.5 100.0 102.0 103.3 95.2

Other 10,325 95.1 99.2 101.0 101.0 102.0 99.3

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 May 2018.

In May 2018, the median loan-to-value ratio (LTV) was 96.5 percent for Ginnie Mae, 80 percent for Fannie Mae, and 

80 percent for Freddie Mac. The 10th percentile was 83.8 percent for Ginnie Mae, and 50-51 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
De

mortgages,

household

$9,833

Debt,

Purchase DTI

Number of Loans P10 P25 Median P75 P90 Mean

All 286,446 25.0 32.0 40.0 46.0 50.0 38.6

Fannie 99,268 23.0 30.0 38.0 45.0 48.0 36.8

Freddie 77,153 23.0 29.0 37.0 44.0 48.0 35.9

Ginnie 110,025 29.2 35.7 42.7 49.2 54.1 42.0

Refi DTI

Number of Loans P10 P25 Median P75 P90 Mean

All 133,689 23.0 31.0 39.0 45.0 49.0 37.6

Fannie 63,025 23.0 30.0 39.0 45.0 49.0 37.1

Freddie 42,850 22.0 29.0 37.0 44.0 48.0 35.9

Ginnie 27,814 26.9 34.5 42.4 49.1 54.0 41.3

All DTI

Number of Loans P10 P25 Median P75 P90 Mean

All 420,135 24.0 31.8 39.6 46.0 49.8 38.3

Fannie 162,293 23.0 30.0 38.0 45.0 48.0 36.9

Freddie 120,003 22.0 29.0 37.0 44.0 48.0 35.9

Ginnie 137,839 28.8 35.5 42.7 49.1 54.1 41.9

Purchase DTI: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 110,025 29.2 35.7 42.7 49.2 54.1 42.0

FHA 69,334 30.6 37.3 44.2 50.1 54.5 43.2

VA 30,737 28.1 35.0 42.2 48.8 54.1 41.6

Other 9,954 26.4 31.4 36.4 40.3 43.2 35.4

Refi DTI: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 27,814 26.9 34.5 42.4 49.1 54.0 41.3

FHA 14,900 28.2 35.9 43.5 49.6 54.3 42.1

VA 12,792 25.6 33.2 41.1 48.1 53.6 40.3

Other 122 19.8 26.1 33.7 39.7 45.3 32.8

All DTI: Ginnie Mae Breakdown By Source

Number of Loans P10 P25 Median P75 P90 Mean

All 137,839 28.8 35.5 42.7 49.1 54.1 41.9

FHA 84,234 30.1 37.0 44.1 50.0 54.5 43.0

VA 43,529 27.3 34.4 41.9 48.6 54.0 41.2

Other 10,076 26.4 31.3 36.3 40.3 43.2 35.4

May 2018 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 May 2018.

In May 2018, the median Ginnie Mae debt-to-income ratio (DTI) was 42.7 percent, considerably higher than the 37-

38 percent median DTIs for Fannie Mae and Freddie Mac. The 90th percentile for Ginnie Mae was 54.1 percent, also 

much higher than the 48 .0 percent DTIs for the GSEs. Within the Ginnie Mae market, the median FHA DTI ratio was 

44.1 percent, versus 41.9 percent for VA and 36.3 percent for other lending programs. 

26
Credit Box: Historical

660

680

700

720

740

760

780

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

May-18

FICO Scores

FICO Scores for Purchase Loans 

Freddie Median FICO Fannie Median FICO

Ginnie Median FICO All Median FICO

27

660

680

700

720

740

760

780

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

May-18

FICO Scores for Refinance Loans

Freddie Median FICO Fannie Median FICO

Ginnie Median FICO All Median FICO

748

751

675

727

660

680

700

720

740

760

780

Sep-13 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

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 May 2018. Sources: eMBS and Urban Institute. Note: Data as of May 2018.

Sources: eMBS and Urban Institute. Note: Data as of May 2018.

The median FICO score for all agency MBS originated in May now stands at 727, slightly higher than last 

month. The figures clearly 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.
Credit Box: Historical

96.5

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

May-18

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

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

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

Aug-13

Nov-13

28

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

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 6-12 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 May 2018.

85

80
Credit Box: Historical

37.0

38.0

42.7

39.6

32.0

34.0

36.0

38.0

40.0

42.0

44.0

Sep-13 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

Debt-to-Income Ratio

DTI Ratio for All Loans

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

29

30.0

32.0

34.0

36.0

38.0

40.0

42.0

44.0

Sep-13

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

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

Sep-13

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

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 May 2018.

Sources: eMBS and Urban Institute. 

Note: Data as of May 2018.

Sources: eMBS and Urban Institute. 

Note: Data as of May 2018.

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

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

movement more pronounced for Ginnie Mae loans. Increases in DTIs are very typical during periods in which 

interest rates are rising. Rising interest rates are usually accompanied by rising home prices, leaving borrowers 

with sharply higher monthly payments. This is usually accompanied by sharp decreases in refinancing activity, 

making lenders more apt to work a bit harder to get a loan approved for a marginal borrower.
Nonbank Originators

Sources: eMBS and Urban Institute

Note: Data as of May 2018.

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

Development. Data as of May 2018.

The nonbank origination share has been generally increasing since 2013. In May 2018, the Ginnie Mae 

nonbank originator share stood at 79 percent. Nonbank originator shares for Freddie Mac reached new 

historical highs, now standing at around 59 percent. The nonbank originator share for Fannie Mae increased 

slightly to 55 percent. For Ginnie Mae, the non-bank refi share was higher than the non-bank purchase share. 

The differences were more modest for the GSEs.

64%

59%

55%

79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

May-13

Jul-13

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

May-18

Nonbank Origination Share: All Loans

All Fannie Freddie Ginnie

30

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

May-13

Sep-13

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

All Fannie Freddie Ginnie

Nonbank Origination Share: 

Refinance Loans

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

May-13

Sep-13

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

All Fannie Freddie Ginnie

Nonbank Origination Share: 

Purchase Loans
Ginnie Mae Nonbank Originators 

Sources: eMBS and Urban Institute

Note: Data as of May 2018.

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

Development. Data as of May 2018.

In May 2018, Ginnie Mae’s nonbank share dipped slightly to 79 percent. Nonbank originator shares for FHA 

remained flat at 84 percent, while the Other issuance share dipped slightly to 79 percent. The VA nonbank 

originator share saw a modest increase to 76 percent. The nonbank originator share is higher for refinance 

loans than for purchase loans across all channels.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

May-13

Jul-13

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

May-18

Non-bank originator share

Ginnie Mae Nonbank Originator Share: All Loans

All FHA VA Other

31

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

May-13

Sep-13

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

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%

May-13

Sep-13

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

Ginnie Mae Nonbank Share: 

Refinance Loans

All FHA VA Other

84%

79%

76%
Sources: eMBS and Urban Institute. 

Note: Data as of May 2018. 

Sources: eMBS and Urban Institute. 

Note: Data as of May 2018. 

727

745

716

680

690

700

710

720

730

740

750

760

770

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

May-18

Agency FICO: Bank vs. Nonbank

FICO All Median FICO Bank Median FICO Nonbank Median FICO

Sources: eMBS and Urban Institute. Note: Data as of May 2018. 

670

690

710

730

750

770

Sep-13

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

All Median FICO Bank Median FICO

32

Nonbank Median FICO

Ginnie Mae FICO: Bank vs. 

Nonbank

670

690

710

730

750

770

Sep-13

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

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. The FICO scores for both Ginnie Mae 

bank and nonbank originators have been declining in 2018.
Sources: eMBS and Urban Institute. Note: Data as of May 2018. Sources: eMBS and Urban Institute. Note: Data as of May 2018.

66

68

70

72

74

76

78

80

82

84

86

88

90

Sep-13

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

GSE LTV: Bank vs. Nonbank

All Median LTV Bank Median LTV

Nonbank Median LTV

Sources: eMBS and Urban Institute. Note: Data as of May 2018.

90

91

92

93

94

95

96

97

98

99

100

Sep-13

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

All Median LTV Bank Median LTV

Nonbank Median LTV

Sources: eMBS and Urban Institute. Note: Data as of May 2018.

33

30

32

34

36

38

40

42

Sep-13

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

All Median DTI Bank Median DTI

Nonbank Median DTI

30

32

34

36

38

40

42

Sep-13

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

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 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 in a rising rate environment.
670

680

690

700

710

720

730

740

Sep-13

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

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 May 2018

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 May 2018

The FICO scores for both Ginnie Mae bank and nonbank originators decreased in May 2018. The spread in the 

FICO scores between banks and non-banks remains close to their widest level since the data became available 

in 2013. The gap between banks and non-banks is very apparent in all programs backing Ginnie Mae securities: 

FHA, VA, and Other.

34

650

660

670

680

690

700

710

Sep-13

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

FICO score

Ginnie Mae FICO Scores: 

Bank vs. Nonbank

All Median FICO Bank Median FICO

Nonbank Median FICO

660

665

670

675

680

685

690

695

700

705

Sep-13

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

Ginnie Mae FHA FICO Scores: 

Bank vs. Nonbank

FHA All Median FICO

FHA Bank Median FICO

670

680

690

700

710

720

730

740

Sep-13

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

Ginnie Mae Other FICO Scores: 

Bank vs. Nonbank

Other All Median FICO

Other Bank Median FICO

Sources: eMBS and Urban Institute Note: Data as of May 2018 Sources: eMBS and Urban Institute Note: Data as of May 2018
90

92

94

96

98

100

102

104

Sep-13

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

FICO scores

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 May 2018

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 May 2018.

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 non-bank originated loans. 

90

91

92

93

94

95

96

97

98

99

100

Sep-13

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

FICO score

Ginnie Mae LTV: 

Bank vs. Nonbank

All Median LTV

35

Bank Median LTV

Nonbank Median LTV

90

91

92

93

94

95

96

97

98

99

100

Sep-13

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

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

Sep-13

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

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 May 2018 Sources: eMBS and Urban Institute Note: Data as of May 2018
34

35

36

37

38

39

40

41

42

43

44

45

Sep-13

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

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 May 2018

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 May 2018

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

conservative. The DTIs for FHA and VA loans experienced notable increases since early 2017 for both bank and 

nonbank originations, while the Other originations’ DTIs stayed relatively flat. Rising DTIs are to be expected in 

a rising rate environment.

34

35

36

37

38

39

40

41

42

43

44

45

Sep-13

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

FICO score

Ginnie Mae DTI: 

Bank vs. Nonbank

36

All Median DTI Bank Median DTI

Nonbank Median DTI

34

35

36

37

38

39

40

41

42

43

44

45

Sep-13

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

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

Sep-13

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

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 May 2018 Sources: eMBS and Urban Institute Note: Data as of May 2018
Prepayments

0%

5%

10%

15%

20%

25%

30%

Sep-11 Jun-12 Mar-13 Dec-13 Sep-14 Jun-15 Mar-16 Dec-16 Sep-17 Jun-18

Constant Prepayment Rate (%)

Aggregate Prepayments

Fannie CPR Freddie CPR

37

Ginnie I CPR Ginnie II CPR

0%

5%

10%

15%

20%

25%

30%

35%

Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18

Constant Prepayment Rate (%)

2015 Issued 3.5 Coupon CPR

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

Sources: Credit Suisse and Urban Institute. Note: Data as of June 2018.

Sources: Credit Suisse and Urban Institute. Note: Data as of June 2018.

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

been higher since. These differences hold across all coupon buckets. The differences are especially pronounced on 

more recent production. These increased Ginnie speeds reflect the growing share of VA loans, which prepay at faster 

speeds than either FHA or GSE loans. This also reflects the fact that FHA streamlined refinances apply to a wide range 

of borrowers and unlike GSE streamlined 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 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 rates. 

With mortgage rates substantially above 4%, we would expect prepayments in the coming months to stay muted.

14%

13%

10%

17%

13%

12%
Prepayments

0%

5%

10%

15%

20%

25%

Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18

Constant Prepayment Rate (%)

2013 Issued 3.0 Coupon CPR

Freddie 2013 3.0 Coupon CPR

38

Fannie 2013 3.0 Coupon CPR Ginnie II 2013 3.0 Coupon CPR

0%

5%

10%

15%

20%

25%

30%

Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17

Constant Prepayment Rate (%)

2012 Issued 3.5 Coupon CPR

Freddie 2012 3.5 Coupon CPR Fannie 2012 3.5 Coupon CPR Ginnie II 2012 3.5 Coupon CPR

Sources: Credit Suisse and Urban Institute. Note: Data as of June 2018.

Sources: Credit Suisse and Urban Institute. Note: Data as of June 2018.

The 2013 Ginnie II 3.0s are prepaying faster than their conventional counterparts. 2012 Ginnie II 3.5s have been 

faster since mid-2013. The differences accelerated in 2015—potentially due to the FHA mortgage insurance 

premium (MIP) cut. In January 2015, FHA lowered its MIPs from 135 basis points per annum to 85 basis points 

per annum; this gives 2012 and 2013 FHA mortgages taken out with MIPs of 125-135 bps a 40-50 basis point 

rate incentive that conventional mortgages do not have. GSE guarantee fees have gone up over that same period, 

creating a disincentive for conventional loans. Moreover, recent originations are more heavily VA loans, which 

are more prepayment responsive than either FHA or Conventional loans. After a sharp mortgage rate rise in 

November 2016, the prepayment speeds of Ginnie 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 substantially above 4%, we would expect prepayments in the coming months to stay muted.

15%

11%

15%

10%
Prepayments

0%

5%

10%

15%

20%

25%

30%

35%

Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18

Constant Prepayment Rate (%)

2011 Issued 4.5 Coupon CPR

39

Freddie 2011 4.5 Coupon CPR Fannie 2011 4.5 Coupon CPR Ginnie II 2011 4.5 Coupon CPR

0%

5%

10%

15%

20%

25%

30%

35%

Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18

Constant Prepayment Rate (%)

2011 Issued 4.0 Coupon CPR

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

Sources: Credit Suisse and Urban Institute. Note: Data as of June 2018.

Sources: Credit Suisse and Urban Institute. Note: Data as of June 2018.

The 2011 Ginnie II 4.0s and 4.5s have been prepaying faster than their conventional counterparts since late 

2013. Faster VA mortgage prepays plus simplifications to the FHA streamlined programs in 2013 are likely 

contributors to the faster speeds. However, as mortgage rates rose sharply since November 2016, the speeds 

for all agencies have slowed down considerably. 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 substantially above 4%, we 

would expect prepayments in the coming months to stay muted. Note that recent month speeds on both the 

Ginnie Mae II 4 and 4.5% coupons are well below same month 2017 speeds.

16%

12%

16%

14%
Reverse Mortgage Volumes

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

Mar-18

May-18

Sep-10

Nov-10

Jan-11

Mar-11

May-11

Jul-11

Sep-11

Nov-11

Jan-12

Mar-12

May-12

Jul-12

Sep-12

Nov-12

Jan-13

Mar-13

May-13

Jul-13

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

$ Billions

HMBS Issuance Volume

$56.2

$0

$10

$20

$30

$40

$50

$60

Mar-18

May-18

Nov-10

Jan-11

Mar-11

May-11

Jul-11

Sep-11

Nov-11

Jan-12

Mar-12

May-12

Jul-12

Sep-12

Nov-12

Jan-13

Mar-13

May-13

Jul-13

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

$ Billions

HMBS Outstanding 

Other Ginnie Mae Programs

Sources: Ginnie Mae and Urban Institute. Note: Data as of May 2018.

Sources: Ginnie Mae and Urban Institute. Note: Data as of May 2018.

Ginnie Mae reverse mortgage issuance saw another sharp decline in May 2018. The choppiness the past few 

months was largely due to the implementation of the new, lower principal limit factors that went into effect in 

March 2018. In May 2018, reverse mortgage issuance stood at $0.58 billion, and outstanding securities totaled 

$56.2 billion.

$0.58

40
Multifamily Market

$1.7

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

Mar-18

May-18

Nov-10

Jan-11

Mar-11

May-11

Jul-11

Sep-11

Nov-11

Jan-12

Mar-12

May-12

Jul-12

Sep-12

Nov-12

Jan-13

Mar-13

May-13

Jul-13

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

$ Billions

Ginnie Mae Multifamily MBS Issuance

$112.5

$0

$20

$40

$60

$80

$100

$120

Mar-18

May-18

Nov-10

Jan-11

Mar-11

May-11

Jul-11

Sep-11

Nov-11

Jan-12

Mar-12

May-12

Jul-12

Sep-12

Nov-12

Jan-13

Mar-13

May-13

Jul-13

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

$ Billions

Ginnie Mae Multifamily MBS Outstanding 

Other Ginnie Mae Programs

Sources: Ginnie Mae and Urban Institute. Note: Data as of May 2018.

Sources: Ginnie Mae and Urban Institute. Note: Data as of May 2018.

Ginnie Mae multifamily issuance volumes in April totaled $1.7 billion. Outstanding multifamily securities totaled 

$112.5 billion in April.

41
Market Conditions

Sources: SIFMA and Urban Institute. Note: Data as of June 2018.

$227 

$556

$35 

$0

$100

$200

$300

$400

$500

$600

1997 2000 2003 2006 2009 2012 2015 2018

42

$ Billions

Average Daily Fixed Income Trading Volume by Sector

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

3.56%

3.76%

0.38% 0%

2%

4%

6%

8%

10%

12%

14%

1997 2000 2003 2006 2009 2012 2015 2018

$Billions

Average Daily Turnover by Sector 

Agency MBS Turnover Treasury Turnover Corporates Turnover

Agency MBS trading volume was $227 billion/day in June 2018; slightly more robust than in the 2014-2017 

period. Agency MBS turnover has also been higher in 2018 than in the 2014-2017 period; in the first five 

months of 2018, average daily MBS turnover was 3.56 percent versus 3.38 percent in 2017. Both average daily 

mortgage and Treasury turnover are down dramatically 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 June 2018.
Market Conditions

$201.1

150

200

250

300

350

400

450

500

550

600

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

$ Billions

Repo Volume: Securities In

43

$40.8

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

$ 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 June 2018.

Sources: Federal Reserve Bank of New York Primary Dealer Statistics and Urban Institute. Note: Data as of June 2018.

Dealer net positions in agency MBS are now at the lower end of the recent range, although gross positions are 

likely down more. The volume of repurchase activity is near its lowest level in 13 years. This reflects banks 

cutting back on lower margin businesses. 
MBS Ownership

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008Q1 2009Q1 2010Q1 2011Q1 2012Q1 2013Q1 2014Q1 2015Q1 2016Q1 2017 Q1 2018 Q1

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 Q1 2018.

Credit Unions

Foreign Investors

The largest holders of agency debt (Agency MBS + Agency notes and bonds) include the Federal Reserve (20 

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

are a fraction of what they once were. 

% of Total Agency 

Debt by Owner

44
MBS Ownership

Debt,

$9,833

household

mortgages, tg

Sources: Federal Reserve Flow of Funds and Urban Institute. Note: Data as of Q1 2018.

72.0%

50%

55%

60%

65%

70%

75%

2008Q1 2009Q1 2010Q1 2011Q1 2012Q1 2013Q1 2014Q1 2015Q1 2016Q1 2017 Q1 2018 Q1

Percent of MBS over Outstanding Agency Debt

MBS Share of Total Agency Debt

Sources: Federal Reserve Bank and Urban Institute. Note: Data as of June 2018.

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. For Q1 2018, the MBS share of total agency 

debt stood at 72.0 percent. Commercial banks are now the largest holders of Agency MBS. Out of their $1.8 trillion 

in holdings as of the end of June 2018, $1.3 trillion of it was held by the top 25 domestic banks.

45

Commercial Bank Holdings ($Billions) Week Ending

May-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 June 6 June 13 June 20 June 27

Largest Domestic 

Banks 1,249.9 1,295.7 1,302.9 1,294.6 1,281.7 1,285.2 1,286.7 1,297.1 1,301.4 1,303.9 1,314.6 1,326.2

Small Domestic 

Banks 467.4 478.2 478.6 479.1 478.5 477.2 480.0 479.2 481.2 482.4 481.3 482.6

Foreign Related 

Banks 11.3 17.7 35.2 33.2 32.1 33.7 33.8 30.8 30.2 34.4 35.7 30.8

Total, 

Seasonally

Adjusted 1,728.6 1,791.6 1,816.7 1,806.9 1,792.3 1,796.1 1,800.5 1,807.1 1,812.8 1,820.7 1,831.6 1,839.6
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 $308,503 $179,430 $115,594 $13,187 $292 17.00%

2 Wells Fargo & Company $238,554 $181,671 $48,097 $4,517 $4,269 13.20%

3 JP Morgan Chase & Co. $97,801 $59,735 $27,066 $397 $10,603 5.40%

4 U S. Bancorp. $76,594 $35,012 $12,490 $29,091 $1 4.20%

5 Charles Schwab Bank $73,074 $43,574 $11,650 $17,850 $0 4.00%

6 Citigroup Inc. $58,153 $43,410 $1,522 $9,051 $4,170 3.20%

7 Capital One Financial Corporation $54,663 $17,339 $13,837 $22,337 $1,149 3.00%

8 Bank of New York Mellon Corp. $50,822 $30,439 $1,872 $16,767 $1,744 2.80%

9 PNC Bank, National Association $43,169 $33,176 $4,508 $2,683 $2,801 2.40%

10 Branch Banking and Trust Company $39,124 $13,200 $6,517 $18,829 $578 2.20%

11 State Street Bank and Trust Company $29,674 $10,079 $5,902 $9,478 $4,215 1.60%

12 E*TRADE Bank $24,153 $13,087 $4,723 $6,343 $0 1.30%

13 KeyBank National Association $24,067 $827 $1,052 $22,187 $0 1.30%

14 Morgan Stanley $23,004 $9,133 $7,235 $6,636 $0 1.30%

15 SunTrust Bank $22,490 $11,513 $10,920 $0 $56 1.20%

16 HSBC Banks USA, National Association $21,641 $5,590 $7,464 $8,584 $3 1.20%

17 Regions Bank $18,111 $10,922 $4,747 $2,439 $3 1.00%

18 MUFG Union Bank, National Association $17,628 $5,845 $4,826 $6,264 $693 1.00%

19 Ally Bank $17,147 $9,798 $2,877 $2,251 $2,221 0.90%

20 The Northern Trust Company $16,506 $9,054 $1 $7,419 $32 0.90%

Total Top 20 $1,254,875 $722,832 $292,901 $206,312 $32,831 69.10%

Sources: Inside Mortgage Finance and Urban Institute. Note: Data as of Q1 2018.

Out of the $1.8 trillion in MBS holdings at banks and thrifts, $1.4 trillion is in agency pass-through form: $1.0 

trillion in GSE pass-throughs and $360.7 billion in Ginnie Mae pass-throughs. There are another $412.4 billion in 

Agency CMOs. Non-agency holdings total $45.3 billion. Ginnie Mae pass-throughs have been the fastest growing 

sector in the past 2 years. MBS holdings at banks and thrifts declined slightly in Q1 2018, although over the past 2 

years, the growth has been quite strong, with Ginnie pass-throughs the fastest growing sector.

46

All Banks & Thrifts ($Billions)

Total Agency MBS GSE PT GNMA PT Agency CMO Private MBS 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

Bank and Thrift Residential MBS Holdings
MBS Ownership

$920.7

$405.2

$515.5

0

100

200

300

400

500

600

700

800

900

1,000

Mar-13

May-13

Jul-13

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

Nov-14

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

$ Billions

Monthly Agency MBS Holdings by Foreigners

Total Agency MBS Held by Foreigners Foreign Official Foreign Private

Sources: Treasury International Capital (TIC) and Urban Institute. Note: Data as of March 2018.

Sources: SIFMA and Treasury International Capital (TIC). Note: Data as of Q1 2017.

47

14.4%

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

13.0%

13.5%

14.0%

14.5%

15.0%

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 2018

Percent of Agency MBS Owned by Foreigners

Foreign Share of Agency MBS

Foreign investors held 14.4 percent of agency MBS in Q1 2018, up sharply from the lows in 2013. For the 

month of March 2018, this represents $920.7 billion in Agency MBS; $405.2 billion held by foreign official 

institutions and $515.5 billion held by foreign private investors. 
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 March 2018.

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

of all foreign holdings. Since June of 2017 we estimate Japan and Taiwan have expanded their holdings, while 

China has contracted their holdings. We estimate Japan and Taiwan have each added around $18 billion in agency 

MBS between June 2017 and March 2018.

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

Country Jun-17 Sep-17 Dec-17 Mar-18 Q3 2017 Q4 2017 Q1 2018

Taiwan 227,195 229,030 234,234 245,182 1,835 5,204 10,948

Japan 228,466 244,261 241,067 246,344 15,795 -3,194 5,277

China 183,393 177,580 170,702 173,169 -5,813 -6,878 2,467

South Korea 46,791 47,581 45,467 44,099 790 -2,114 -1,368

Ireland 44,229 46,648 51,525 49,164 2,419 4,877 -2,361

Luxembourg 31,289 33,026 37,575 39,336 1,737 4,549 1,761

Cayman Islands 32,682 29,016 28,374 29,026 -3,666 -642 652

Bermuda 26,767 27,125 28,904 28,055 358 1,779 -849

Switzerland 17,312 18,675 16,794 13,063 1,363 -1,881 -3,731

Malaysia 12,365 13,162 12,751 12,139 797 -411 -612

Rest of World 129,723 124,357 125,465 124,266 -5,366 1,108 -1,199

Total 980,212 990,461 992,858 1,003,843 10,249 2,397 10,985

48

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

Country Jun-17 Sep-17 Dec-17 Mar-18 Q3 2017 Q4 2017 Q1 2018

Taiwan 227,073 228,914 234,127 245,049 1,841 5,213 10,922

Japan 221,528 237,689 234,985 238,777 16,161 -2,704 3,793

China 177,546 172,042 165,576 166,792 -5,504 -6,465 1,216

South Korea 33,891 35,362 34,158 30,030 1,471 -1,204 -4,128

Ireland 33,663 36,640 42,262 37,641 2,977 5,623 -4,621

Luxembourg 28,314 30,208 34,967 36,091 1,894 4,759 1,125

Cayman Islands 24,897 21,642 21,549 20,536 -3,255 -93 -1,013

Bermuda 23,156 23,705 25,738 24,117 549 2,034 -1,622

Switzerland 13,867 15,412 13,774 9,306 1,545 -1,638 -4,468

Malaysia 11,905 12,726 12,348 11,637 821 -379 -710

Rest of World 94,872 91,345 94,913 86,258 -3,527 3,567 -8,655

Total 890,712 905,684 914,397 906,235 14,972 8,713 -8,162
0

50

100

150

200

250

300

350

400

Jan-08

Apr-08

Jul-08

Oct-08

Jan-09

Apr-09

Jul-09

Oct-09

Jan-10

Apr-10

Jul-10

Oct-10

Jan-11

Apr-11

Jul-11

Oct-11

Jan-12

Apr-12

Jul-12

Oct-12

Jan-13

Apr-13

Jul-13

Oct-13

Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

Apr-15

Jul-15

Oct-15

Jan-16

Apr-16

Jul-16

Oct-16

Jan-17

Apr-17

Jul-17

Oct-17

Jan-18

Apr-18

$ Billions

Total Fed Absorption

Total Fed Purchases Gross Issuance

MBS Ownership

49

0

50

100

150

200

250

Nov-10

May-11

Nov-11

May-12

Nov-12

May-13

Nov-13

May-14

Nov-14

May-15

Nov-15

May-16

Nov-16

May-17

Nov-17

May-18

$ 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 May 2018.

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

Institute. Note: Data as of May 2018.

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

Note: Data as of May 2018.

0

10

20

30

40

50

60

70

Nov-10

May-11

Nov-11

May-12

Nov-12

May-13

Nov-13

May-14

Nov-14

May-15

Nov-15

May-16

Nov-16

May-17

Nov-17

May-18

$ Billions

Fed Absorption of Ginnie Mae MBS

Total Fed Purchases Gross Issuance

The Fed has begun to wind down their portfolio, and we are beginning to see the effects in slower absorption 

rates. During the period October 2014-September 2017, the Fed had ended its purchase program, but was 

reinvesting funds from mortgages and agency debt into the mortgage market, absorbing 20-30 percent of agency 

gross issuance. With the wind down started in October 2017, the Fed will continue to reinvest, but by less than 

their run off. In May 2018, total Fed purchases decreased to $9.1 billion, yielding Fed absorption of gross 

issuance of 9.1 percent, the lowest level since the Fed began its second mortgage purchase program. The Fed 

absorbed 9.7 percent of Ginnie Mae issuance and 8.9 percent of GSE issuance, respectively.
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 Urban Institute and State Street Global Advisors as

of July 16, 2018 and are subject to change based on market and other conditions. 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.   

© 2018 State Street Corporation. All Rights Reserved.

2181618.1.1.GBL.INST

Expiration Date: 7/31/2019

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