FHA Capital Losses, Negative Press Having Adverse Effect on Ginnie Mae MBS, But Strength Remains
November 24, 2009
Ginnie Mae securities are some of the safest pools of loans on the market, but the recent publicity about deterioration in the FHA insurance fund – which backstops about 80 percent of Ginnie issuance – has made some investors and analysts nervous about prepayments and performance. The annual audit of the FHA’s financial status showed that the program’s capital... [Includes one graph]