Fannie Mae, Freddie Mac: Ginnie Mae Taking Market Share – ValueWalk Premium
Fannie mae share mortgage market 0514

Fannie Mae, Freddie Mac: Ginnie Mae Taking Market Share

Wherever you stand on Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) reform, one thing that everyone seems to agree on is that the government should work to get more private capital back into housing financing. Fannie Mae and Freddie Mac issuances have taken the place of the private label mortgage backed securities (MBS) that all but disappeared after the financial crisis, but you don’t usually hear about the rapid growth of Ginnie Mae securities, which have an explicit Federal guarantee.

“Over the past housing cycle, the composition of mortgage origination has changed dramatically. Mortgages implicitly or explicitly guaranteed by the government are 90% of all loans originated, compared to two thirds before the crisis,” write Goldman Sachs analysts Hui Shan and Marty Young.


This content is exclusively for paying members.

If you are subscribed and having an account error please clear cache and cookies if that does not work email [email protected] or click Chat.

Saved Articles