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GNMA Midget

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GNMA Midget
A GNMA pass-through certificate backed by fixed-rate mortgages with a 15-year maturity. GNMA Midget is a dealer term and is not used by GNMA in the formal description of its programs.

GNMA Midget
Informal for mortgage-backed securities with principals and interest guaranteed by Ginnie Mae and having certain features. In particular, the mortgages underlying GNMA midgets have fixed-rates and 15-year maturities. As with other agency pass-through securities, a government agency (in this case Ginnie Mae) reduces the risk of default to the pass-through holder by guaranteeing payment.


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