V.
Managements Discussion
and Analysis of Financial
Position and Results of
Operations
Financial Highlights of 2001
Fiscal Year 2001 was another year of very
favorable financial achievement marked by
increases in both revenues and assets.
Ginnie Mae achieved record net income of
$805.3 million, a 5.6 percent increase from
$762.8 million in Fiscal Year 2000. Revenues
increased by 5.6 percent, to $878.5 million
from $832 million in Fiscal Year 2000, and
total assets increased 10.1 percent, to $8.7
billion from $7.9 billion in Fiscal Year 2000.
These growth rates reflect strengthened finan-
cial management and the continued growth
in Ginnie Maes MBS programs during Fiscal
Year 2001.
Ginnie Mae provided the market with impor-
tant services and contributed to a stable envi-
ronment. The outstanding MBS portfolio
increased, which generated increased guaranty
and commitment fee revenues. In Fiscal Year
2001, MBS program income rose to $438.7
million from $408.2 million in Fiscal Year
2000. Due to Ginnie Maes strong program
management, total expenses as a percentage
of total revenues decreased from 5.7 percent
in Fiscal Year 2000 to 5.6 percent in Fiscal
Year 2001.
Ginnie Mae issued $161.7 billion in commit-
ment authority in Fiscal Year 2001, an 85
percent increase from Fiscal Year 2000. The
$153.8 billion of MBS issued in Fiscal Year
2001 represented a 45.8 percent increase in
MBS issued from Fiscal Year 2000. The out-
standing MBS balance at the end of Fiscal
Year 2001 was $604.3 billion, compared to
$603.5 billion the previous year. Fiscal Year
2001 production provided the capital to
finance the purchase or refinance of homes
for approximately 1.3 million American
families.
Ginnie Mae has continued its strong financial
performance during Fiscal Year 2001 and pro-
duced continued growth in revenue. Excess
revenues over expenses are invested in U.S.
Government securities. To date, Ginnie Maes
earnings and fund balance have provided the
capital to finance its operations and, as a
result, Ginnie Mae has not needed to obtain
funds through federal appropriations.
The following chart illustrates Ginnie Maes
revenue growth in the past five years:
Revenue
Fiscal Year
Dollars in Millions
1997
$687
1998
$767
1999
$799
2000
$832
2001
$878
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G i n n i e M a e A n n u a l R e p o r t 2 0 0 1