Why buy seasoned Ginnie Maes?
Short final maturities all money back within 6-13 years (finals of ’04 to ’10) Invest small amounts many seasoned pools require as little as a $2500 investment Less probability of refinancing risk than with new issues of same coupon. These seasoned pools have been outstanding for from 15 to 25 years. The cost of refinancing lessens the financial advantage for the smaller, shorter mortgages remaining, as compared with recently issued 30-year mortgages of the same coupon. Who Issues Pass-Throughs? There are many types of mortgage-backed securities that give investors monthly payment of both principal and interest commonly referred to as “cash flow.” This article provides background on the three housing agencies: Government National Mortgage Association (Ginnie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), and Federal National Mortgage Association (Fannie Mae). Government National Mortgage Association (GNMA) The GNMA pass-through represents a pooling of Federal Housing Autho
