SAN DIEGO - Ginnie Mae announced a package of initiatives this week to improve liquidity and pricing of its mortgage-backed securities - including a plan to start buying the bonds itself.

Giving its securities a market boost would help Ginnie compete with the Federal Home Loan banks, its new rival in the FHA loan market. The banks' Mortgage Partnership Finance program has bought up a substantial portion of FHA loans, a market that Ginnie Mae has been accustomed to dominating. Some have estimated that the Home Loan banks could take away 30% to 40% of Ginnie's FHA loan volume.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.