New Ginnie Prez to Tout MBS to Foreigners

July 2006
Nation Mortgage News MortgageWire

Robert Couch, the newly sworn-in Ginnie Mae president, says the agency needs to do a better job of promoting Ginnie-guaranteed mortgage-backed securities to foreign investors. Fannie Mae and Freddie Mac have done a great job of tapping foreign capital markets, Mr. Couch told MortgageWire. "We need to get the message out that Ginnie MBS are the only ones that carry the full faith and credit of the U.S. government," he said. "That ought to be a strong message to foreign investors, particularly those looking for a safe investment." But the new Ginnie Mae president said his top priority is to actively support passage of Federal Housing Administration reform that would make FHA single-family loans more competitive and indirectly boost issuance of Ginnie MBS. Ginnie Mae and the FHA are "joined at the hip," Mr. Couch said. In recent years Ginnie MBS issuance has declined with the drop in FHA originations, but he noted that issuance has stabilized thanks to administrative changes that made the FHA program more attractive. Mr. Couch was president of New South Federal Savings Bank, Birmingham, Ala., and managing director of Collateral Mortgage, which originated FHA loans. He was chairman of the Mortgage Bankers Association from October 2003 to October 2004.