Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Economic News

In contrast to Fannie Mae and Freddie Mac, Ginnie Mae posts record earnings

Historic performance by Ginnie Mae

Ginnie Mae (or the Government National Mortgage Association), announced that it has posted record earnings for its 2011 fiscal year, earning $1.18 billion in net income, their best performing year to date, surpassing 2010 fiscal earnings of $541.5 million. Ginnie Mae is owned by the government and its primary function is to guarantee then sells mortgages on federally insured loans to investors of mortgage-backed securities.

The government agency said it helped finance three out of every five American home purchases in the 2011 fiscal year ending September 30th during which period their retained earnings rose to $15.7 billion. So far this year, Ginnie Mae has issued more mortgage backed bonds than Freddie Mac, replacing the agency as the second largest funder of home loans in America.

“Our approach to risk-taking is conservative and our ability to finance government-insured mortgages is helping to keep the housing market afloat,” Ginnie Mae’s President Ted Tozer said in a statement.

“Ginnie Mae’s role and significance in U.S. housing finance is as strong as it has ever been,” said Ginnie Mae EVP Mary Kinney. “Since the onset of the credit crisis, Ginnie Mae has guaranteed $1.3 trillion, which financed about 4.8 million single-family homes and multifamily units for families across the country. Our ability to simultaneously attract private capital from the global capital markets and provide effective business solutions for MBS issuers keeps capital flowing into U.S. housing even during recessionary periods.”

Advertisement. Scroll to continue reading.

A far cry from Fannie and Freddie

Although performing a completely separate function, Ginnie Mae’s performance is in stark contrast to the recent performance of Freddie Mac who lost $4.4 billion in the third quarter and has requested an additional $6 billion, while Fannie Mae who lost $5.1 billion in the last quarter requested an additional $7.8 billion.

“Ginnie Mae has had a remarkable year; it’s our best yet,” said Tozer. “Our financial performance this fiscal year—despite a mortgage market still in turmoil—is a testament to our well-functioning business model. 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.”

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Housing News

(Housing News) Fannie Mae is offering incentives on foreclosures, and while many homeowners are unaware, many agents are as well - time to take...

Housing News

(Housing News) Once thought an impossibility, the controversial Mel Watt has been confirmed as the next head of the FHFA, which some say is...

Housing News

Bank of America will shell out $404 million to settle their final claim between the big bank and Freddie Mac and Fannie Mae, covering...

Housing News

With talks of Fannie Mae and Freddie Mac being shuttered, there are implications many are not talking about.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.