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MORTGAGE-RELATED SECURITY PRODUCTION TOPS $824 BILLION IN 1992 AS ALL MARKET SEGMENTS POST BIG GAINS

 WASHINGTON, Jan. 11 /PRNewswire/ -- New production of mortgage- related securities hit a record-breaking $824.0 billion in 1992, or 56 percent above the previous record volume set in 1991, according to preliminary year-end numbers compiled by Inside Mortgage Securities.
 For the first time ever, issuance of traditional mortgage pass- through securities -- those backed by whole mortgages and issued by governmental as well as private issuers -- exceeded half a trillion dollars: $545.3 billion. Meanwhile, all segments of the mortgage- related securities market posted issuance increases of at least 33 percent last year.
 Inside Mortgage Securities (formerly Inside Mortgage Capital Markets) is an independent newsletter based in Bethesda, Md.
 Leading the entire mortgage-related securities market in terms of production growth in 1992 was the private-label MBS sector. A record $89.5 billion in non-governmental guaranteed MBSs were issued last year -- a huge 81 percent increase over issuance a year earlier.
 Issuance of government- and government agency-guaranteed MBSs -- Ginnie Mae, Freddie Mac and Fannie Mae -- soared to a record high $455.9 billion in 1992, preliminary year-end numbers indicate. Fannie Mae led the government market with a staggering $193.9 billion in single-class MBS issuance last year, a 72 percent increase over Fannie Mae's 1991 volume.
 Following not too far behind Fannie Mae both in terms of growth and volume in 1992 was rival Freddie Mac. With an estimated $178.4 billion in single-class PC issuance for 1992, Freddie Mac not only set a new corporation production record but also posted a sizable 66 percent increase over 1991's volume.
 Although issuance of Ginnie Mae MBSs rose a healthy 33 percent in 1992, it was not enough to produce a record year for the agency. In fact, Ginnie Mae's $83.6 billion in MBS issuance last year fell short of the $94.9 billion produced in 1987 and the $101.4 billion issued in 1986.
 As expected, the agency-backed CMO/REMIC market posted a record year in 1992 with $278.7 billion in new issuance -- a 43 percent increase over 1991's activity.
 Top Private-Label MBS Issuers
 In a major accomplishment, Prudential Home Mortgage Securities Corp. edged out the government's Resolution Trust Corporation to become the largest issuer of private-label mortgage securities in 1992, according to Inside Mortgage Securities' year-end ranking.
 Prudential ended last year with a whopping $16.9 billion in private-label MBS production as part of 53 separate transactions -- more than three times the dollar volume issued by the firm in 1991. Prudential accounted for nearly 20 percent of all private-label MBSs produced last year.
 In second place among private-label MBS issuers for 1992 was the RTC, 1991's top issuer of securities. The RTC produced $15.1 billion in residential mortgage securities last year as part of 21 deals. This represented a 57 percent increase over the RTC's MBS volume in 1991.
 In third place was private conduit Residential Funding Corporation with $11.9 billion in private-label MBS issuance as part of 52 deals in 1992. In 1991, RFC issued $7.4 billion in MBSs.
 Rounding out the top five private-label MBS issuers in 1992 were fourth place Ryland/Saxon Mortgage Securities with $6.5 billion, and fifth place Citicorp Mortgage Securities and its various affiliates with $5.8 billion in volume.
 Top Agency-Backed CMO/REMIC Issuers
 Fannie Mae and Freddie Mac continued their reign as the number one and two issuers of agency-backed CMOs and REMICs in 1992, accounting for a whopping 98 percent of the $278.7 billion in securities produced last year, according to Inside Mortgage Securities' year-end ranking.
 Fannie Mae issued $144.3 billion in REMICs as part of 269 separate transactions in 1992. This was a 30 percent increase over Fannie Mae's 1991 REMIC volume when the company was also the top agency-backed CMO/REMIC issuer.
 Despite Fannie Mae's healthy increase in REMIC productions in 1992, the company gave up some market share to rival Freddie Mac. Fannie Mae's REMIC market share was 51.8 percent in 1992, down from 56.9 percent in 1991.
 Freddie Mac, with $129 billion in REMIC volume last year, picked up a hefty 10 percent in market share, going from a 36 percent share in 1991 to a 46.3 percent share in 1992.
 Much of Freddie Mac's increased market share came from private issuers, who accounted for less than 2 percent of the agency-backed CMO/REMICs produced in 1992. First Boston was the only private issuer who issued more than $1 billion in CMOs or REMICs last year.
 A complete list of all mortgage security issuers in 1992 as well as year-end statistics on the mortgage-related securities market can be obtained from Inside Mortgage Securities.
 -0- 1/11/93
 /CONTACT: Guy Cecala, editor and publisher, Inside Mortgage Securities, 301-951-1240/


CO: Inside Mortgage Securities ST: District of Columbia IN: FIN PUB SU:

MH -- DC013 -- 3570 01/11/93 13:14 EST
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