Let’s play “How Many People Work at Ginnie Mae?” Is it:

a) 80
b) 800
c) 8,000
d) none of the above (there always have to be a “none of the above”)

The correct answer is A, 80. Considering that Ginnie Mae issuance is up 78% to $337 billion through the first nine months of 2009 compared to all of 2008, that is a paltry number of staff. Ginnie, which is essentially supporting the entire secondary mortgage market at this point, issued nearly $40 billion of MBS in September alone. I am just back from a financial services conference in San Diego, and three Ginnie employees were there manning the agency’s exhibit booth. To say that they looked tired was an understatement.

And it is not just Ginnie that is understaffed. The Department of Housing and Urban Development had 2,500 lenders apply to be FHA-approved lenders during the 2009 fiscal year. How many people at HUD work on lender approvals? Try four.

Both HUD and Ginnie do corral consultants to fill in the employment gaps, but there is still a dire need for more full-timers. Ginnie and FHA are at the center of the federal government’s efforts to revitalize the mortgage market. Perhaps the White House should consider revitalizing Ginnie and FHA first.