Ginnie Mae calls 2011 'best year yet'
Ginnie Mae reported $1.18 billion in net income for the fiscal year 2011, more than double the $541 million the year before. Ginnie guarantees timely payment of principal of interest on securities backed primarily by Federal Housing Administration and Veterans Affairs loans. The previous earnings high came at $906 million in 2008. Revenues slightly increased to $1.06 billion. "Ginnie Mae has had a remarkable year; it’s our best yet," said Ginnie President Ted Tozer. "Our financial performance this fiscal year – despite a mortgage market still in turmoil – is a testament to our well-functioning business model." Ginnie financed nearly 60% of all home purchases in its fiscal year ended 2011. It guaranteed $1.3 trillion or 4.8 million loans since the crisis struck in 2007. Lawmakers are currently working to restore private capital as the largest financier of U.S. mortgages. Combined with Fannie Mae and Freddie Mac, the government backs roughly 95% of all home loans. But while Fannie and Freddie continue to hemorrhage losses and require bailouts, Ginnie is breaking records. "Our business is simple, our approach to risk-taking is conservative, and our ability to finance government-insured mortgages is helping to keep the housing market afloat," Tozer said. Write to Jon Prior. Follow him on Twitter @JonAPrior.