In a recent post, we noted the surge in new mortgage deliveries to a record level in July. Besides this sharp increase, there is an interesting shift in the composition of these deliveries in the form of a striking decline in the government share.
As can be seen from the above table, Ginnie Mae lost over 11 full points in market share over the May – July period from a year earlier. The bulk of this loss is concentrated in refi loans. To dig a bit deeper, it is natural to look at a breakdown of volumes into the various Ginnie programs.
Notably, VA’s refi volume in the three-month period ending in July was triple what it had been in the same period last year, while FHA’s grew by only a bit more than 50%.
And in terms of the VA/FHA Share:
VA gained over 12 points in the VA/FHA share over this period, led by a 16% jump in the refi share.
Ginnie Mae securities are collateralized with loans from programs with widely varied guidelines. Understanding the abrupt changes in shares requires a deeper look into the program guidelines, and the behavior of the individual lenders in each.
 Refer to our previous post: Mortgage Deliveries Surge to New Record in July
 Unlike the GSEs which both guarantee and securitize loans, Ginnie Mae’s role is primarily as securitizer and the guarantor role is taken by four other agencies: FHA, VA, Rural Development, and Indian Housing. The first two comprise the bulk of the volumes and we refer to the rest as “others”.