approximately $41.6 billion in Platinum products in Fiscal Year 2001.  Fees amounted to $17.7 million, representing a 51 percent increase in fee income from the previous year. Fees from REMIC securities amounted to $9.3 million on $25.8 billion in issuance for those products, representing an increase of 9.4 per- cent in fee income.  Ginnie Mae recognized a portion of the REMIC and Platinum program fees in the period the fees are received, with the balance deferred and amortized over the remaining life of the financial investment. In Fiscal Year 2001, Ginnie Mae issued a total of $67.4 billion in its multiclass securities pro- gram.  The estimated outstanding balance of multiclass securities (REMICs and Platinums) included in the total MBS securities balance at September 30, 2001 was $165.6 billion. These guaranteed securities do not subject Ginnie Mae to additional credit risk beyond that assumed under the MBS program. MBS Program and Administrative Expenses MBS program and administrative expenses are incurred to carry out Ginnie Mae’s programs and initiatives.  These costs include contractor services, personnel, compensation, printing, and other administrative functions.  MBS pro- gram and administrative expenses increased from $47.2 million in Fiscal Year 2000 to $49.4 million in Fiscal Year 2001, representing an increase of 4.7 percent. The increase in expenses is attributable to normal expenses for managing its program activities.  Ginnie Mae’s ability to effectively administer its programs is illustrated by the decreased rate of total expenses as a percent- age of total revenues from 5.7 percent in Fiscal Year 2000 to 5.6 percent in Fiscal Year 2001. Expenses as a percentage of total revenues have ranged over the last five years from 5.6 percent to 6.5 percent.  Additionally, MBS program and administrative expenses as a percentage of average RPB grew slightly over the last five years from 0.0075 percent to 0.0082 percent. The following chart depicts MBS program and administrative expenses as a percentage of gross revenues: Expenses as a Percentage of Gross Revenues Fiscal Year Percentage 1997 5.6% 1998 5.9% 1999 6.5% 2000 5.7% 2001 5.6% Credit Related Expenses Credit related expenses include Ginnie Mae’s Provision for Loss and defaulted issuer portfo- lio costs.  The Provision for Loss is charged against income in an amount considered appropriate to maintain reserves for losses at levels management determines adequate to absorb potential losses from defaulted issuer portfolios and program losses.  Based on management’s assessment of reserve adequacy, a Provision for Loss was made in Fiscal Year 2001 for $23.8 million. A similar Provision for Loss was made in Fiscal Year 2000 for $22 million. Financial Models Ginnie Mae’s Policy and Financial Analysis Model (PFAM) is a comprehensive model that allows Ginnie Mae to evaluate its finan- cial condition, in terms of cash flows, capital resource adequacy, and budget projections, under an array of economic and financial scenarios, modified by policy or programmat- ic decisions.  The PFAM incorporates Ginnie Mae’s inherent operations-based risks with modeling that employs economic, financial, and policy variables to generate output that assesses these risks and overall performance. The information from PFAM supports Ginnie Mae management in key financial decisions such as allocating reserves against future losses.  This model also aids the prepa- 20 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