Ginnie Mae

Ginnie Mae

See: Government National Mortgage Association

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Ginnie Mae

A wholly owned government association that operates the mortgage-backed securities program designed to facilitate the flow of capital into the housing industry. Ginnie Mae-approved private institutions issue mortgage-backed securities with payments that are guaranteed even if borrowers or issuers default on their obligations. Ginnie Mae was created in 1968 when the Federal National Mortgage Association was partitioned into two parts. Formerly called Government National Mortgage Association. See also Ginnie Mae pass through, mobile home certificate.

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Government National Mortgage Association (Ginnie Mae). The Government National Mortgage Association, known as Ginnie Mae, guarantees mortgage-backed securities issued by approved private institutions and marketed to investors through brokerage firms.

The agency's dual mission is to provide affordable mortgage funding while creating high-quality investment securities that offer safety, liquidity, and an attractive yield.

Ginnie Mae securities are backed by mortgages that are insured by either the Federal Housing Administration (FHA) or the Rural Housing Service (RHS), or guaranteed by the Department of Veterans Affairs (VA).

Ginnie Mae securities are sold in large denominations -- usually $25,000. But you can buy Ginnie Mae mutual funds, which allow you to invest more modest amounts.

Ginnie Mae is an agency of the US Department of Housing and Urban Development (HUD).