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M REPORT | 63 SECONDARY MARKET THE LATEST O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T Ginnie Mae MBS Portfolio Continues to Grow Ginnie's November new MBS issuance supports the financing of more than 122,000 households nationwide, including more than 55,600 first-time homebuyers. G innie Mae's mortgage- backed securities (MBS) portfolio outstanding grew to $2.325 trillion in November of 2022, including $36 billion of total MBS issuance for November, leading to $23 billion of net growth. November's new MBS issuance supports the financing of more than 122,000 households, including more than 55,600 first-time home- buyers. Approximately 69% of November MBS issuance reflects new mortgages that support home purchases, as refinance activity remained slowed due to higher mortgage rates. The November issuance includes $34.22 billion of Ginnie Mae II MBS and $1.82 bil- lion of Ginnie Mae I MBS, includ- ing approximately $1.71 billion in loans for multifamily housing. "Monthly issuance of Ginnie Mae MBS is returning to historic patterns, consisting of primar- ily purchase money transactions supporting tens of thousands of households in achieving first-time homeownership," Ginnie Mae EVP and COO Sam I. Valverde said. Ginnie Mae attracts global capi- tal into the housing finance system to support homeownership for vet- erans and millions of homeowners throughout the country. The Mortgage Bankers Association's (MBA) most recent monthly Loan Monitoring Survey found the total overall number of loans currently in forbearance remained flat relative to the prior month at 0.70% as of November 30, 2022. Ginnie Mae loans in forbearance increased five basis points to 1.46% in November 2022, up from 1.41%. "There were pockets of weakness in the November data, despite the forbearance rate remaining unchanged and the overall loan performance of serviced loans staying mostly flat," said Marina Walsh, CMB, MBA's VP of Industry Analysis. "The forbearance rate for Ginnie Mae loans increased for the fourth consecutive month, and the overall performance of the portfolio declined for the third consecutive month. Furthermore, the performance of government post-forbearance workouts also weakened." Ginnie Mae's MBS programs directly support housing finance programs administered by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), the U.S. Department of Housing and Urban Development's (HUD) Office of Public and Indian Housing, and the U.S. Department of Agriculture's Rural Housing Service (USDA). FHFA Imposes More Fannie/Freddie Oversight Fannie Mae and Freddie Mac will now need Federal Housing Finance Agency approval—and possibly public comment—before offering new products, in order to ensure safety and soundness standards. D ue to Freddie Mac and Fannie Mae's status as government- sponsored enterprises (GSEs), the Federal Housing Finance Agency (FHFA) has announced a new rule to pro- tect the public and maintain high standards of financial safety and soundness. According to an announcement from the FHFA, the GSEs will have to provide advance notice to the agency—and receive approval—before offering any new products or services. The final rule defines what categories of activities would be considered "new," and the FHFA will determine if such new products or services rise to the level of needing public comment. The rule also establishes a public dis- closure requirement, requiring the FHFA to publish its determinations on requested new activities or services. "The final rule clarifies how FHFA will conduct assessments of new activities and products proposed by the Enterprises," Director Sandra L. Thompson said. "Enterprise activities can have significant effects on the mortgage market, consumers, and industry stakeholders, and today's rule further refines FHFA's process to ensure activities continue to serve the Enterprises' mission while maintaining high standards of safety and soundness." The final rule implements Section 1321 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by Section 1123 of the Housing and Economic Recovery Act of 2008.