Ginnie Mae No Longer Weighing Bond Shakeup, President Tozer Says

Ginnie Mae, the U.S. government-owned corporation that guarantees almost $1.5 trillion of mortgage bonds, is no longer actively considering merging its two types of securities, President Ted Tozer said.

Moves by Wall Street dealers and data providers encouraged by the agency have helped boost the attractiveness to investors of its Ginnie Mae II securities relative to Ginnie Mae I bonds, Tozer said in a telephone interview. That’s allowed the share of issuance by lenders in the Ginnie IIs to grow even larger in recent months, helping to address his concern that lower volumes may make trading more difficult, Tozer said.