Ginnie Mae - Government National Mortgage Association GNMA

Ginnie Mae - Government National Mortgage Association GNMA

A wholly-owned U.S. government corporation within the U.S. Department of Housing and Urban Development (HUD). The main focus of Ginnie Mae is to ensure liquidity for U.S. government-insured mortgages including those insured by the Federal Housing Administration (FHA), the Veterans Administration (VA) and the Rural Housing Administration (RHA). The majority of mortgages securitized as Ginnie Mae MBS are those guaranteed by FHA. FHA mortgagors are typically first-time home buyers and low-income borrowers.

Notes:

Ginnie Mae does not issue, sell, or buy mortgage-backed securities, or purchase mortgage loans. It simply guarantees (insures) the timely payment of principal and interest from approved issuers like the Farmers Home Administration.

See also: Fannie Mae, Freddie Mac, MBS