Residential Real Estate Newsroom

Ginnie Mae Boosts Affordable Housing as Multifamily Program Continues to Grow

Washington, DC – Ginnie Mae announced that the Multifamily Mortgage-Backed Securities (MBS) Program increased by 7.4 percent, from $35.3 billion to $37.8 billion, marking the 13th year of growth in the organization's multifamily housing program.

"At Ginnie Mae, we support affordable housing—helping people achieve homeownership and helping to maintain a strong supply of affordable rental housing—both are necessary if American families are to have safe, decent places to live," said Robert M. Couch, President of Ginnie Mae. "And we know that affordable rental housing is often the first step on the ladder to home ownership."

The Ginnie Mae multifamily portfolio continues to show strong growth. The multifamily portfolio grew at double-digit rates.

Ginnie Mae's multifamily mortgage-backed securities programs permit approved issuers to securitize project and construction loans. Since 1971, Ginnie Mae has guaranteed more than $94 billion in multifamily mortgage-backed securities, financing affordable multifamily housing units including apartment buildings, nursing homes and assisted-living facilities. As with other Ginnie Mae-guaranteed products, the guarantee of full and timely payments of principal and interest on Ginnie Mae project loan securities is backed by the full faith and credit of the United States.

Recently, Ginnie Mae expanded the program to include rural housing multifamily properties. However, FHA loans are still primary component of the multifamily program. Nearly 97 percent of all FHA multifamily loans are placed in Ginnie Mae securities.

Ginnie Mae has continued to streamline the multifamily program, enhancing its efficiency as a securitization vehicle and making the program more attractive to investors.

"Historically, Ginnie Mae has played an important role in providing opportunities in the multifamily housing market ", said Ted Foster, Senior Vice President of Mortgage-Backed Securities at Ginnie Mae. "By promoting access to mortgage credit and enhancing the liquidity of mortgage investment, Ginnie Mae has increased the availability of affordable rental housing for millions of Americans."