Ginnie Mae has experienced tremendous growth in the last few years, therefore it faces operational challenges, according to Theodore Tozer, President Obama's nominee to be the agency's new president.
Tozer told the Senate Banking Committee at his confirmation hearing that Ginnie Mae has become a major player in the mortgage-backed securities market and it has to address counter-party risk with its MBS issuers.
"Ginnie has a good foundation and dedicated staff and I look forward to working with them, if confirmed, to move the agency to the next level and make it a very solid operation that can support the housing market," he told the senators.
It appears that the full Senate, according to lobbyists, will confirm Tozer. The nominee has worked at National City and now at PNC Financial Services Group as a capital markets executive. Tozer has been involved in issuing Ginnie Mae MBS since 1986.
Ginnie Mae issued $414 billion in MBS last year, up from $97 billion in 2007.