ration of Ginnie Mae’s budget through the estimation of the credit subsidy rate for each of Ginnie Mae’s programs. Fiscal Year 2001 marked the release of PFAM 2.0, the first comprehensive redesign of the model since its initial development in 1992. Modeling improvements include a new demand model for single family and multi- family loan types, the use of regional variables to model geographic variation in loan and issuer performance as well as improved esti- mation techniques. A well designed and self-documenting Oracle database has been added to streamline the process of data updates and reduce turn- around time.  An equally important enhance- ment is the addition of a relational database, which enables expanded reporting features such as drill-down graphs and charts, and grants the user meaningful access to the wealth of data available in the model. PFAM 2.0 also employs a secure web-enabled interface, making it easier for authorized users to access the model, while eliminating the need to install and update customized hardware and software on individual users’ terminals. As is done each year, Ginnie Mae worked with the FHA and VA to obtain the most current and comprehensive loan level data. This data supported detailed segmentation of loans according to key risk indicators, including loan type, loan size, loan-to-value ratio, and region, enabling Ginnie Mae to map the cur- rent risk profile of the collateral supporting its guaranteed mortgage-backed securities. Ginnie Mae obtained the most current eco- nomic forecast, as well as a range of alterna- tive scenarios to support Ginnie Mae’s use of stress testing in risk management and capital adequacy demonstration.  Policy forecasts were updated in coordination with key profes- sionals and documentation from Ginnie Mae, FHA and VA. Liquidity Ginnie Mae’s role in supporting expanded affordable housing in America through sec- ondary market vehicles is ongoing through the use of the guaranty of the full faith and credit of the United States Government.  Liquid assets further Ginnie Mae’s initiatives, and these needs are driven by the development of new secondary market vehicles, the timely payment of pass-throughs to security holders, and general operations.  Through successful cash management, program management and commitment to cost containment, Ginnie Mae has not been required to obtain appropriations or other debt financing services. The table below describes the composition and maturity of Ginnie Mae’s Treasury securities: Composition of Treasury Securities by Fiscal Year Percent of Total 2001 2000 Due within 1 year 49% 21% Due after 1-5 years 43% 60% Due after 5-10 years 8% 19% Ginnie Mae’s primary sources of cash are MBS and Multiclass Guaranty Fee Income, Com- mitment Fee Income and Interest Income. After accounting for expenses and other fac- tors, on September 30, 2001, Ginnie Mae reported funds in the U.S. Treasury of $2.04 billion compared with $1.62 billion on September 30, 2000.  The increase in funds in the Treasury is influenced by the Credit Reform Act of 1990.  This Act requires that Ginnie Mae segregate funds held with the U.S. Treasury between Liquidating and Financing accounts.  Funds received from activity origi- nating prior to Fiscal Year 1991 are accounted for in the Liquidating accounts, while funds received from MBS fees for activity originat- ing after Fiscal Year 1991 are maintained in the Financing accounts.  For Credit Reform purposes, funds in the Financing account are deposited into an interest bearing account with the U.S. Treasury. In addition to the funds in the U.S. Treasury, Ginnie Mae’s investments totaled $6.56 bil- lion, compared with $6.17 billion in the prior year.  Throughout 2001, Ginnie Mae used an investment strategy that increased interest income, while shortening its average maturity 21 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