HUD Archives: News Releases

GINNIE MAE REMIC TRANSACTIONS SET TWO VOLUME RECORDS IN AUGUST

WASHINGTON - Ginnie Mae this week closed its largest REMIC transaction ever. Ginnie Mae REMIC 1999-29 was issued at $1.8 billion, exceeding the previous record set last month by $460 million. Salomon Smith Barney is the sponsor of both the largest transaction and the second largest transaction.

On the strength of this transaction and four other REMICs that closed this week, Ginnie Mae exceeded its previous one month record issuance volume by $900 million. The month of August ended with a total of $4.8 billion in Ginnie Mae REMIC transactions due to the support of PaineWebber Incorporated; Lehman Brothers; Bear, Stearns & Co. Inc.; Donaldson, Lufkin & Jenrette; Blaylock & Partners; Myerberg & Company; and Utendahl Capital Partners.

REMIC, a type of mortgage-backed security, stands for Real Estate Mortgage Investment Conduit.

"Breaking two records in one month shows that the market recognizes the strength and safety of Ginnie Mae REMICs and is demanding the Ginnie Mae REMIC execution," said George S. Anderson, Executive Vice President of Ginnie Mae. "This helps us fulfill our mission of reducing interest rates to low- and moderate-income homeowners."

Ginnie Mae is a wholly-owned government corporation within the Department of Housing and Urban Development that supports federal housing initiatives by providing liquidity to the secondary mortgage market and by attracting capital to the residential mortgage markets.

Ginnie Mae programs help increase the supply of affordable housing by guaranteeing securities issued by private lenders backed by pools of residential mortgages insured by the Federal Housing Administration (which is part of HUD), the Department of Veterans Affairs and the Rural Housing Service.