The Government National Mortgage Association's mortgage-backed securities program has had unprecedented growth the past two years, and now the agency wants to nearly triple its allotment for salaries, to $30 million, which would let it enlarge its staff while reducing dependence on outside contractors.
The secondary market agency guaranteed $413 billion of mortgage-backed securities in fiscal year 2010 with a staff of 77 and a payroll of $11.1 million, including benefit expenses. All of Ginnie Mae's operational costs, including salaries, are paid from securitization fees.
The MBS boom helped Ginnie Mae report a $542 million profit last year.
A nearly threefold increase in salary funding would let Ginnie Mae expand its staff to 249 full-time jobs, according to new White House budget documents.
"This request would allow GNMA to increase its staff level to serve two purposes: to strengthen its risk management and oversight and to move in-house some functions performed by contractors," the budget documents said.
Last week Ginnie Mae President Ted Tozer testified before a congressional panel about the budget increase, saying, "Given Ginnie Mae's continued profitability and strong risk management practices, it is time to use our fee resources to ensure that we are run as efficiently and effectively as possible."
In 2007, the year before the financial crisis began, Ginnie Mae issued just $85 million in MBS. Its payroll budget at the time was $10.7 million.
