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Testimony: The GSEs and Ginnie Mae Provide Important Access to Mortgage Credit in Underserved Communities

September 6, 2018
Mortgage Lending
Testimony

Both the GSEs and Ginnie Mae continue to provide critical mortgage capital to underserved communities. The GSEs purchased more than two million homes and refinance mortgage loans in 2015, including almost half a million loans to low- and moderate-income borrowers, nearly 400,000 loans to borrowers of color and over 300,000 loans to borrowers living in rural areas. At the same time, smaller financial institutions (those with assets less than $10 billion) originated and sold loans to the GSEs in order to meet the credit needs of nearly 400,000 borrowers seeking mortgage credit in rural communities, relying on the GSEs for critical capital. Loans backed by Ginnie Mae also continue to play a significant role in serving borrowers whose credit may warrant additional enhancement or who have limited resources for a down payment. However, government-backed lending cannot and should not be the sole source of mortgage lending in these communities.

Download the complete testimony of Nikitra Bailey from the September 6th meeting of the House Financial Services Committee.