The Honorable Mel Martinez
Secretary
U.S. Department of Housing and Urban Development
Washington, DC 20410
Dear Mr. Secretary:
I am pleased to present to you the Annual Report and the audited financial statements of
the Government National Mortgage Association (Ginnie Mae) for the fiscal year ended
September 30, 2001. Ginnie Mae, once again, received an unqualified opinion from its inde-
pendent auditors, KPMG LLP, with no findings of material weaknesses or reportable conditions.
Ginnie Mae continues to be a strong and integral part of the Department.
During Fiscal Year 2001, Ginnie Mae reached approximately $1.8 trillion in original issues of
mortgage-backed securities guaranteed since 1970. We are quite proud of our continuing
accomplishments and our important role in helping to meet HUDs commitment to support
affordable homeownership for low- and moderate-income families in America. Our role in
the secondary mortgage market provides an important public benefit to Americans fulfilling
their dream of homeownership, regardless of economic conditions.
Ginnie Maes strong financial performance continued in Fiscal Year 2001. Operating results
for the year exceeded historic performance levels. Our mortgage-backed securities outstanding
totaled $604.3 billion in Fiscal Year 2001, approximately the same as last fiscal year. Ginnie Maes
net revenues were $805.3 million in Fiscal Year 2001, a 6 percent increase and a record as
compared to $762.8 million in Fiscal Year 2000. Ginnie Maes mortgage-backed securities pro-
gram guaranteed the issuance of $153.8 billion in mortgage-backed securities last year, thereby
providing capital for the purchase or refinance of approximately 1.3 million homes, including
multifamily units. We are extremely proud that, over its lifetime, Ginnie Maes mortgage-backed
securities have financed homeownership opportunities for 26.8 million American families.
Ginnie Maes excellent performance over many years is a fundamental indicator of our ability
to manage risk and increase stability in the marketplace.
Ginnie Maes commitment to our issuers, the marketplace, and the community was evident
in our response to the events of September 11, 2001. Our staff worked diligently following the
attacks in providing uninterrupted service to the mortgage industry. Ginnie Mae activated its
Continuity of Operations Plan (COOP) on September 11, 2001. Ginnie Mae successfully sus-
tained all business operations throughout the tragic events. In addition, within days of the
attacks, we were working on a plan to provide assistance: reimbursement to issuers for interest
3
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