What is the Government National Mortgage Association (Ginnie Mae)?
The Government National Mortgage Association (Ginnie Mae) was created in 1968 as a wholly- owned government corporation within the U.S. Department of Housing and Urban Development (HUD). Ginnie Mae guarantees the principal and interest payments on mortgage-backed securities (MBS) issued by program participants. The securities are collateralized by the cash flows from loans insured or guaranteed by the Federal Housing Administration (FHA), Department of Veterans Affairs Home Loan Program for Veterans (VA Loans), Office of Public and Indian Housing (PIH), and the U.S. Department of Agriculture (USDA) Rural Development Housing and Community Facilities Programs. The Ginnie Mae guarantee assures investors that they will receive their monthly principal and interest (P&I) payments on outstanding securities in a timely manner. The guarantee is the only MBS backed by the full faith and credit of the United States Government.
The Government National Mortgage Association (Ginnie Mae) was created in 1968 as a wholly- owned government corporation within the U.S. Department of Housing and Urban Development (HUD). Ginnie Mae guarantees the principal and interest payments on mortgage-backed securities (MBS) issued by program participants. The securities are collateralized by the cash flows from loans insured or guaranteed by the Federal Housing Administration (FHA), Department of Veterans Affairs Home Loan Program for Veterans (VA Loans), Office of Public and Indian Housing (PIH), and the U.S. Department of Agriculture (USDA) Rural Development Housing and Community Facilities Programs. The Ginnie Mae guarantee assures investors that they will receive their monthly principal and interest (P&I) payments on outstanding securities in a timely manner. The guarantee is the only MBS explicitly backed by the full faith and credit of the United States Government.
