Revenues for the Government National Mortgage Association (GNMA) were more than $1 billion for fiscal year 2010, up from $657.3 million in 2009.
The increase was driven by additional guaranty fee and net interest income, which reached reached $541.5 million in 2010, surpassing the $509.6 million net income total for 2009. The company increased its provisions for loan losses to slightly more than $1 billion in 2010, up from $559.9 million in 2009.
“Given the continued slow pace of growth in the U.S. economy, Ginnie Mae’s increase in both revenue and net income is quite an accomplishment,” said Ginnie Mae President Ted Tozer. “This year we’ve increased our loan loss reserves, and we believe this increased provision is more than sufficient to offset losses on servicing portfolios taken over by Ginnie Mae due to Issuer defaults.”
According to Ginnie Mae its business volume reached a historic milestone in 2010 by surpassing $1 trillion in MBS outstanding. The trillion dollar portfolio supports more than eight million housing units for families across the country. During the housing crisis, the corporation pumped more than $900 billion of liquidity into the single-family housing market since June of 2008.
“Our goal is to be the best-in-class conduit for bringing capital into the U.S. housing finance system, while minimizing risk to U.S. taxpayers,” said Executive Vice President Mary Kinney. “During this incredibly challenging housing market, Ginnie Mae has overseen tremendous business growth, while simultaneously implementing strong risk management practices and providing efficient solutions to our business partners.”
Ginnie Mae’s HMBS program, which is backed by FHA reverse mortgages saw issuance grow to $11.793 billion during FY 2010, up 131.24% from FY 2009.
In November, Tozer said Ginnie Mae would lift the moratorium on new HMBS issuers in December during a speech at the National Reverse Mortgage Lenders Association annual conference. The agency suspended the approval of new issuers in earlier this year while it determined new net worth requirements.
