1. Five Star Government Forum
March 25,2014
Ginnie Mae:
Program Overview and Insights

2. Discussion Overview
• Ginnie Mae’s Role in the Market
• Housing Finance Reform
• Evolving Industry Trends
• Ginnie Mae Initiatives and Response

3. Overview
• U.S. Government-owned corporation within HUD
• Guarantee Mortgage-Backed Securities (MBS), which raise funding for virtually all
loans insured or guaranteed by U.S. Government agencies (FHA, VA, USDA Rural
Development)
– Only MBS backed by full faith and credit guaranty of the U.S. government
– Ginnie Mae does not originate loans or issue MBS, and thus has no exposure to
credit risk
• Facilitate financing of diverse products:
– Single-family: forward & reverse mortgages, manufactured homes
– Multifamily: construction & permanent loans, hospitals, nursing homes, assisted
living facilities
• Outstanding MBS guaranteed volume of nearly $1.5 trillion
– Monthly issuance of $20 - 30 billion
• Over 400 approved Issuers in program
− Ginnie Mae manages counterparty risk at the Issuer level

4. Ginnie Mae – Core Functions
• Servicers and Issuers are
approved based on financial,
management, and operational
capacity.
• Infrastructure must support
pools that include loans from
multiple guarantors and loans
being serviced by multiple
servicers.
• A significant aspect of
ensuring liquidity is acting as
a conduit of information
between servicers,
guarantors, MBS investors,
and policymakers.
• Establish non-guarantee fees
for utilizing the guarantee and
services of Ginnie Mae.
Establish Pooling Requirements for
Ginnie Mae Securities
Provide Infrastructure to Issue
Sophisticated MBS
Approve and Monitor Servicers/Issuers
3
2
1
Generate Loan Level Data for all loans in
Ginnie Mae Pools at Issuance and
Monthly
4
Remit Interest and Principal to MBS
Investor
5
Generate Monthly Reporting on Ginnie
Mae REMIC Securities as Required
6
Coordinate with MBS Stakeholders to
Ensure Maximum Liquidity
7

5. • A healthy financial institution that has generated positive earnings throughout the
recent crisis, Ginnie Mae continued this trend in FY 2013 with a profit of $628.4
million.
• Ginnie Mae guarantees a portfolio of MBS backed by 9.1 million loans and nearly
$1.5 trillion in current UPB.
• Annual portfolio growth has been averaging 12.24% since FY 2010.
• The portfolio composition consists by dollar volume of 69.7% FHA loans; 24.3%
VA loans; and 5.8% RHS loans.
• The composition of pools issued in 2013 consisted of 61% FHA loans, 34% VA
loans, and 5.5% RHS loans.
Ginnie Mae: Guaranteed MBS Portfolio
Overview

6. Ginnie Mae & Fannie/Freddie Loss Waterfall Comparison
Fannie/Freddie with Risk-shareGinnie Mae
First Dollar Loss
Last Dollar Loss
LOSSES
Government
Agency Credit
Enhancement*
Corporate
Resources of
Issuer/
Servicer
Ginnie Mae
Relative Loss Position
$
First Dollar Loss
Last Dollar Loss
LOSSES
Homeowner
Equity
Fannie/
Freddie
Relative Loss Position
$
Private
Mortgage
Insurance**
*VA covers the first 25% of the credit loss, USDA-RHS covers the first 90%, and FHA covers 100%. Coverage of foreclosure
expenses vary by agency; uncovered expenses can be substantial
**Private Mortgage Insurance (PMI) is only required for loans with > 80% LTV; loans with ≤ 80% LTV have no PMI
***Private Credit Enhancement is the result of a recent FHFA mandate on GSE lending requiring risk-share
Private Credit
Enhancement***
Homeowner
Equity

7. Comparison of MBS System Models
Model Ginnie Mae GSE
Bipartisan Policy
Council (Proposed)
Issuer Lender GSE Lender
Credit Risk Holder FHA, VA, USDA/Lender GSE/PMI/Risk-Share Investor Private Entities
Nature of Govt. Guaranty Explicit Implicit Explicit
Govt. Guarantor
Counterparty
Issuer/Servicer
Borrower/
PMI/Risk-Share Investor
Private Credit Enhancer
Govt. Place in Loss
Waterfall*
Fourth
Second/
Third
(in case of PMI on loans w/LTV>80 or
Risk-Share deal)
Third
Guarantors Supported by
the Program
Four
(FHA, VA, RHS, and PIH)
One Multiple
*See Preceding Slide

8. • The U.S. Government has had a significant role in the mortgage market going back at least
30 years
Government Support of Mortgages
Commercial banks
Savings & loans
Government agencies &
government-sponsoreed
enterprises
(government-backed mortgage pools
& loans in portfolio)
Private mortgage conduits
Other
(credit unions, pension
funds, individuals, etc.)
Life insurance companies
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Source: Federal Reserve
Single-Family Mortgage Market Share 1955-2013

9. TBA Market Overview
• To-Be-Announced (TBA) market was created in 1970s to support Ginnie
Mae securitization & financing of government insured loans
– Virtually all government insured mortgages are sold into the TBA market – sold
as part of MBS guaranteed by Ginnie Mae, Fannie Mae & Freddie Mac
• Facilitates forward trading of mortgages (delivery can take over three
months, on average takes two months)
• Enables lenders to lock in rate for loan originations prior to actually
originating loans
• Ginnie Mae has little operational risk through the TBA process.
• TBA securities have U.S. Government guaranty, which facilitates scale of
market & fungibility of securities
• Ginnie Mae TBA provides a reliable and highly utilized conduit to the
market.

10. Stylized TBA Transaction Example
Day 1
Day 2 Through Settlement

11. Evolving Market: Ginnie Mae and GSE MBS
MBS outstanding in billions
Sources: Fannie Mae and Freddie Mac Monthly Reports; Ginnie Mae data includes HECMs
Dec 2013: $2,804B
Dec 2013: $1,482B
Dec 2013: $1,622B

12. Overall Industry Context and Trends
• Volume Drop: Conventional and government mortgage lending have
dropped significantly. In the last 9 months, Ginnie Mae’s monthly issuance
volume has dropped from a high of $42 billion per month last June to a low
of less than $23 billion per month in December 2013.
• Implications: Lender/Servicer financial viability issues
• Refi to Purchase Money Mortgage: In contrast to GSEs, Ginnie Mae MBS
have contained a higher percentage of purchase money mortgages. As refi
volume has decreased, Ginnie Mae’s relative market share has increased
from 25% in CY 2012 to 31% in February 2014.
• Changing Issuer Profile: Litigation risk, regulatory risk, reputation risk, and
Basel capital requirements have prompted Depository Institutions to shrink
their servicing operations and through sale of MSRs to rapidly growing Non-
Depository Institutions.

13. Change in Issuer Composition by Dollar Volume of
Servicing
2010 Issuance Volume: $414 B

14. Top 10 Issuers Comparison, 2011 & 2014
Top 10 Issuers by Outstanding Servicing as of Feb. 2014
Issuer
Rank
Issuer Name UPB % of Portfolio UPB
1 WELLS FARGO BANK, NA $420,655,223,418 31.7%
2 JP MORGAN CHASE BANK, NA $155,944,540,551 11.8%
3 BANK OF AMERICA, NA $117,011,541,853 8.8%
4 U. S. BANK, NA $52,736,873,688 3.9%
5 NATIONSTAR MORTGAGE, LLC $48,184,121,245 4.0%
6 LAKEVIEW LOAN SERVICING, LLC $33,727,476,332 2.5%
7 PENNYMAC LOAN SERVICES, LLC $33,481,587,994 2.5%
8 FREEDOM MORTGAGE
CORPORATION
$32,231,265,775 2.4%
9 OCWEN LOAN SERVICING, LLC $29,753,915,201 2.2%
10 QUICKEN LOANS, INC $28,693,270,683 2.2%
Total Top 10 Issuers $952,419,816,740 72.6%
Total Ginnie Mae Single-family
Portfolio:
$1,326,685,913,879
Top 10 Issuers by Outstanding Servicing as of Sept. 2011
Issuer
Rank
Issuer Name UPB % of Portfolio UPB
1 WELLS FARGO BANK, NA $334,218,512,030 29.8%
2 BANK OF AMERICA, NA $315,768,619,002 28.2%
3 JP MORGAN CHASE BANK, NA $102,983,003,938 9.2%
4 GMAC MORTGAGE, LLC $46,662,945,083 4.2%
5 CITIMORTGAGE, INC $41,106,617,883 3.7%
6 U. S. BANK, NA $38,525,869,511 3.4%
7 PHH MORTGAGE CORPORATION $26,437,504,266 2.4%
8 FLAGSTAR BANK, FSB $20,293,227,800 1.8%
9 PNC BANK, NA $18,345,896,742 1.6%
10 SUNTRUST MORTGAGE, INC $17,986,640,183 1.6%
Total Top 10 Issuers $962,328,836,438 85.8%
Total Ginnie Mae Single-family
Portfolio:
$1,121,090,272,175

15. Issuance Share by Government Agency (Dollar Volume)
VA has been a growing proportion of our issuance; ~35% in CY 2013

16. • VA has been a growing proportion of our issuance; ~35% in CY 2013
Issuance Share by Government Agency Loan Dollar Volume
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2010 2011 2012 2013*
Ginnie Mae Issuance Share by Govt. Agency Volume
FHA
VA
RHS/PIH
*Through November

17. Ginnie Mae Modernization Initiative
• Modernized securitization platform for loan pooling, securities issuance,
data validation & disclosures distribution
• Our platform processes approximately $20 Billion in monthly payments on
the 9 million loans in our MBS and distributes funds to investors.
• Creates new MBS for 110,000 – 130,000 new loans each month.
• MISMO Implementation and Leadership
• Leading federal government in implementation of MISMO adoption
• Publication of loan-level data disclosures for 2013 & 2014
• Loan-Level data for new Single-Family loans released August 2013
• Loan-Level data for existing Single-Family loans released December 2013
• Publish over 34 million pool-level & 327 million loan-level data points a
month
• Targeting Q3 2014 for release of HMBS Enhanced Pool Disclosure and
Phase II of HMBS loan-level disclosures.

18. Ginnie Mae Initiatives
• Acknowledgment Agreements
• The use of Acknowledgement Agreements allows mortgage lenders to
pledge their Ginnie Mae mortgage servicing rights in order to gain access to
liquidity and to meet capital structure strategies.
• Ginnie Mae I and Ginnie Mae II Modernization
• Evaluating the merger of the Ginnie Mae I and Ginnie Mae II programs to
enhance market liquidity.
• FHLB Chicago Conduit Issuer Project
• FHLB Chicago is a Ginnie Mae Issuer, will buy loans from PFIs, aggregate
them & through Ginnie Mae deliver them to investors
• PFIs will have the option to retain or sell servicing on loans
• Coordination Among Government Housing Agencies
• Joint federal housing agencies including FHA, VA, RHS, FHFA, CFPB now
meeting regularly to discuss housing policy, risk issues, and best practices.

19. Summary
• Ginnie Mae is:
– Delivering on its mission to support the government housing
programs with over 98% of government housing loans in Ginnie
Mae MBS.
– Making money for the government and supporting the
housing programs with a minimum of risk.
– Exercising leadership in standardization activities like
MISMO and in making more information available to
investors.
– Responding to the needs of our industry with funding
mechanisms and collaborative pilot programs to continue to
find ways to support American homebuyers and renters.