Puerto Rico 2017 MBA Conference
Ginnie Mae:Program Overview and Insights
• In 1968, Congress established the GovernmentNational Mortgage Association, known as “GinnieMae.”
• Ginnie Mae is a government-owned corporationorganized within HUD. Its President is nominatedby the President of the United States andconfirmed by the United States Senate.
• Ginnie Mae’s mission is to expand affordablehousing in America by linking global capitalmarkets to the nation's housing markets.
• Ginnie Mae securities are the only mortgage-backed securities that offer the full faith andcredit guaranty of the United States Government.
• Ginnie Mae’s role is to guarantee timely principaland interest payments to investors, and it chargesguaranty fees for this commitment.
• Ginnie Mae realized $305.8 million of net profit forthe U.S. Government in FY 2016.
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About Ginnie Mae
• Ginnie Mae has guaranteed over $3.3 trillion in MBS since the onset of thecredit crisis.
• Ginnie Mae has continued in this role during the past year by providingguarantees on $490 billion in securities, representing nearly 2.1 millionhouseholds across the country.
• Ginnie Mae implemented key programoperational and managementinitiatives to strengthen productofferings, improve reporting anddisclosure for customers and themarket.
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Key Achievements in Fiscal Year 2016 (Oct. 2015 to Sept. 2016)
1,247 1,225
2,0982,586
2,874
0
1,000
2,000
3,000
4,000
2012* 2013* 2014 2015 2016
Reve
nues
(Mill
ions
)
Fiscal Year
Ginnie Mae Total Revenues FY 2012 to FY 2016
Program Income and Other RevenueInterest Income - U.S. Government Securities
• Since March 2010, Ginnie Mae MBS grew 90% to over $1.7 trillion, incontrast to Fannie Mae and Freddie Mac whose growth was largely steady,helping to finance affordable and community-stabilizing single familyhousing across the nation.
• The Ginnie Mae single family portfolio is diverse and has provided stabilityto the MBS markets with:
o the securitization of loans for first time home buyers and borrowers withlower credit scores that qualify for agency loans.
o the refinancing of existing FHA, VA, RD, PIH, or conventionally financedproperties.
• In CY 2016, Ginnie Mae’s single family MBS portfolio increased to $1.61trillion, compared to $1.53 trillion in December 2015, and helped financenearly 2.1 million new households.
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Single Family Program Highlights
Ginnie Mae’s relevance is evidenced in its steady, increased growth and its share of the secondary mortgage market.
Pumping new money into economy.
0.06% guaranty fee – unchanged
2.1 million people have benefitted in FY 2016 alone
2017 YTD issuance is comprised of 60% purchase, 34% refinance, and 6% modification volume
Ginnie Mae Provides a Single Security and a Reliable Platform that Levels the Playing Field
Approved Issuers
Outstanding Ginnie Mae Securities; over 10 million loans
$1.8 Trillion
P & I Paid to Investors Monthly
$490 billion of MBS in FY 2016; 35 percent of market.
Current Staffing Level
5
Average Monthly Issuance for 2017 YTD
143
$42Billion
434
$490Billion
$29 Billion
Ginnie Mae MBS Outstanding Surges, Post Financial Crisis42 Years to Reach $1 Trillion then to $1.8 Trillion in Seven Years
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$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Single Family RPB Multifamily RPB HMBS Total Program RPB
Historic trend of growth2007-2017
$ (Billion)
Apr-17$1.82 trillion
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Composition of Ginnie Mae MBS Issuance Volume
Ginnie Mae Issuers are responsible for servicing the securities & the loans backing them; in the case an original Issuer sells servicing to another entity, the new entity takes on all obligations of the original Issuer.
75%
25%
FY 2012Depositories Non-Depositories
FY2012 SF Issuance Volume: $360B
29%
71%
FY 2017 YTD*Depositories Non-Depositories
FY2017 YTD* SF Issuance Volume: $278B*YTD through April
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Vs. Puerto Rico
21
128,886
$12.7
$0.44
$98,164
74%
5.5 Years
Ginnie Mae
Active Issuers 317
Pooled Mortgages 10,419,128
Portfolio RPB ($B) $1,664.8
CYTD Issuance ($B) $133
Average Loan Size $159,785
Ginnie I Concentration 12%
Average Loan Age 3.5 Years8
Single Family Ginnie Mae to Puerto Rico Comparison
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Vs. Puerto Rico
94%
Ginnie Mae
Depository Percentage 49%
Loan Profile
Agency Profile
52%42%
3% 3%
59%
35%
3% 3%0%
20%
40%
60%
80%
Purchase Refi HAMP Non-HAMP
74%
8%18%
0%
67%
25%
8%0%
0%
20%
40%
60%
80%
FHA VA RD PIH
Puerto Rico Ginnie Mae
Single Family Ginnie Mae to Puerto Rico MBS Comparison
Vs. Puerto Rico
4.39%
Ginnie Mae
Average MortgageRate 3.98%
Mortgage Rate Distribution
42%
21%
9%7% 5% 5% 5% 5%
1%
57%
19%
10%
6%3% 2% 1% 1% 0%
0%
10%
20%
30%
40%
50%
60%
<= 4 <= 4.5 <= 5 <= 5.5 <= 6 <= 6.5 <= 7 <= 8 8 <
Puerto Rico Ginnie Mae
Single Family Ginnie Mae to Puerto Rico MBS Comparison
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Puerto Rico Single Family Loan Count By Zip Code
1-35 581-138536-118 119-580 >1385
Caguas
San Juan
Ponce
BayamónCarolina
Mayagüez
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Single Family Ginnie Mae Issuers with Loans in Puerto Rico As of April 2017
# Issuer ID Name
Loans Located in
PRRPB in State % of Issuer
RPB
1 3842 BANCO POPULAR DE PUERTO RICO 58,957 $5,536,785,715 100.0%2 4344 BANCO POPULAR DE PUERTO RICO - (ACQUIRED FROM DORAL) 27,891 $2,205,328,319 100.0%3 3982 SCOTIABANK DE PUERTO RICO 15,667 $1,820,049,763 100.0%4 2217 FIRSTBANK PUERTO RICO 13,250 $1,511,874,458 98.1%5 3963 ORIENTAL BANK 3,039 $373,721,513 100.0%6 3940 EMI EQUITY MORTGAGE, INC. 2,625 $300,848,122 100.0%7 3365 BANCO SANTANDER PUERTO RICO 2,268 $275,964,831 100.0%8 4324 THE MONEY HOUSE, INC. 2,278 $248,826,425 100.0%9 All Other Issuers 2,911 $378,528,993 0.3%
128,886 $12,651,928,139Single Family Loans and RPB Located in PR
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0.0%0.1%0.2%0.3%0.4%0.5%0.6%0.7%0.8%0.9%1.0%
$0
$50
$100
$150
$200
$250
$300
% o
f Tot
al G
inni
e M
ae O
PB
OPB
($M
)
OPB of PR % of Ginnie Mae OPB
Puerto Rico OPB and % of Ginnie Mae Issues
Puerto Rico Ginnie Mae
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Vs. Puerto RicoGinnie Mae
Credit Score Profile
LTV Profile
Puerto Rico Ginnie Mae
9%18%
67%
5%9%19%
71%
1%0%
20%
40%
60%
80%
76-85 86-95 96-105 106-115
7%0% 2% 4%
15%
32%39%
9%
0% 2%5%
22%
36%
26%
0%
10%
20%
30%
40%
50%
Single Family Ginnie Mae to Puerto Rico Comparison (2017 FYTD)
Puerto Rico Ginnie Mae
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Vs. Puerto RicoGinnie Mae
DQ3+ Trend
Delinquencies and Foreclosures
Puerto Rico Ginnie Mae
4.98%
1.86%
2.85%
1.52%
3.07%
0.80% 0.84%0.37%
0%1%2%3%4%5%6%
DQ1 Only DQ2 Only DQ3+ Foreclosure
Single Family Ginnie Mae to Puerto Rico Comparison
0%1%2%3%4%5%6%
Puerto Rico Loss Mitigation Engagement
308 301
694
338
179
0
100
200
300
400
500
600
700
800
2013 2014 2015 2016 2017 YTD
Loss Mitigations
Loan Count
• Loss mitigation activity remains low after a temporary spike in 2015.
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Top 10 Most Common Puerto Rico Issuer FindingsMost Common Findings (Reviews Starting between 9/2/2014 and 5/1/2017)
Finding Description Guidance
250001 Loan(s) found where the liquidation code used was not correct on the Form HUD-11710E.
All Participant Memorandum (APM)
02-17
510108 Issuer does not make full and timely MIP payments as required per Agency. HUD Handbook 4330.1
400721 Loan(s) found which are ineligible for Agency benefits that have not been repurchased from the pool(s).
Ginnie Mae MBS Guide Section 14-8
400606For delinquent loans that have been referred for foreclosure, the process has exceeded FHA's allotted time requirements for that state and no extensions have been requested or granted.
HUD Handbook 4330.1
400711 Loan(s) found in pool(s) which do not match Agency endorsement database.All Participant
Memorandum (APM) 02-17
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Top 10 Most Common Puerto Rico Issuer Findings (cont.)Most Common Findings (Reviews Starting between 9/2/2014 and 5/1/2017)
Finding Description Guidance
510230 Issuer cannot provide evidence of timely Suspended item promotion. Ginnie Mae MBS Guide Appendix VI-19
400709 Loan(s) found in pool(s) which have incorrect case numbers reported to Ginnie Mae.
Ginnie Mae MBS Guide Appendix V-1
510197 Escrow amounts reserved for borrower were not funded into the appropriate custodial account at time of securitization and/or pool transfer date.
Ginnie Mae MBS Guide Section 16-5
400470 Information on the MIC/LGC/LNG does not agree to internal records.All Participants
Memorandum (APM) 02-17
400303 Account title of 203(k) Special Escrow Custodial Account(s) per bank signature card and/or Form HUD-11720 is incorrect.
Ginnie Mae InvestorReporting Manual
Chapter 1, Section VII (B)
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