On the historical occasion of last week's 30th anniversary of the Ginnie Mae Pool No. 1, the first Government National Mortgage Association mortgage-backed security that passed home payments on to investors, the government-sponsored enterprise is coincidentally in a transitional, critical period that has the MBS market abuzz with speculation.

A proposal issued last month by U.S. Department of Housing and Urban Development Secretary Andrew Cuomo, which would allow Ginnie Mae to build a $60 billion investment portfolio - representing nearly 10 % of Ginnie Maes outstanding - and purchase its own MBS, seems to be going ahead at full speed, according to market sources.

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