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The Government National Mortgage Association, or Ginnie Mae, is a U.S. government-owned corporation dedicated to providing liquidity, stability, and affordability to the mortgage market. Established in 1968, Ginnie Mae is an independent agency within the Department of Housing and Urban Development (HUD) that works with entities in the mortgage market to help ensure the availability of mortgages for underserved borrowers. Ginnie Mae was designed to play an important role in providing liquidity to mortgage lenders so that they may freely write new loans and securitize them to generate non-interest bearing funds.
The most common Ginnie Mae product is the Ginnie Mae Mortgage-Backed Security (MBS). Ginnie Mae MBS are government-backed pools of residential mortgages that lenders issue to the capital markets in an effort to bridge the gap between the monthly loan payments and the large lump-sum purchase of the loans. By pooling similar loans into Ginnie Mae MBS and then securing them with a government guarantee, Ginnie Mae eliminates most of the credit risk and therefore reduces the risk of prepayment.
Ginnie Mae MBS have grown in popularity with investors since their introduction in 1970, as they offer greater liquidity and comparatively larger yields. Ginnie Mae MBS have helped make home ownership more accessible to low- and moderate-income borrowers and have helped increase homeownership levels in the United States. Without Ginnie Mae, it would be difficult for lenders to finance mortgages for those underserved consumers, because the high capital costs associated with such transactions would reduce the number of mortgage lenders.
In addition to guaranteeing the timely payment of principal and interest on Ginnie Mae MBS, the corporation also coordinates efforts with federal partners and supports a variety of HUD initiatives to expand homeownership opportunities. Through its workforce insights, Ginnie Mae utilizes data to drive social outcomes and understanding of the mortgage market. The end goal is to foster a homeownership-driven culture that prevents foreclosure, supports sustainably affordable homes, and encourages financial literacy.
Ginnie Mae has played an integral role in the public sector, providing housing finance to American families, ensuring stability in the mortgage market and providing greater liquidity to allocate capital for future lending. It guarantees more than $2 trillion in MBS and has become an essential partner in the housing finance system.
By providing guarantees to the MBS that lenders issue, Ginnie Mae is able to serve as a bridge between the mortgage market and American homeowners, making home loans more accessible and affordable for those who need them most. The corporation’s mission is to foster liquidity, stability, and affordability in the mortgage market and to help increase access to credit for underserved borrowers. Ginnie Mae remains a critical part of the U.S. mortgage markets and a valued resource for the underserved markets the agency serves.
The most common Ginnie Mae product is the Ginnie Mae Mortgage-Backed Security (MBS). Ginnie Mae MBS are government-backed pools of residential mortgages that lenders issue to the capital markets in an effort to bridge the gap between the monthly loan payments and the large lump-sum purchase of the loans. By pooling similar loans into Ginnie Mae MBS and then securing them with a government guarantee, Ginnie Mae eliminates most of the credit risk and therefore reduces the risk of prepayment.
Ginnie Mae MBS have grown in popularity with investors since their introduction in 1970, as they offer greater liquidity and comparatively larger yields. Ginnie Mae MBS have helped make home ownership more accessible to low- and moderate-income borrowers and have helped increase homeownership levels in the United States. Without Ginnie Mae, it would be difficult for lenders to finance mortgages for those underserved consumers, because the high capital costs associated with such transactions would reduce the number of mortgage lenders.
In addition to guaranteeing the timely payment of principal and interest on Ginnie Mae MBS, the corporation also coordinates efforts with federal partners and supports a variety of HUD initiatives to expand homeownership opportunities. Through its workforce insights, Ginnie Mae utilizes data to drive social outcomes and understanding of the mortgage market. The end goal is to foster a homeownership-driven culture that prevents foreclosure, supports sustainably affordable homes, and encourages financial literacy.
Ginnie Mae has played an integral role in the public sector, providing housing finance to American families, ensuring stability in the mortgage market and providing greater liquidity to allocate capital for future lending. It guarantees more than $2 trillion in MBS and has become an essential partner in the housing finance system.
By providing guarantees to the MBS that lenders issue, Ginnie Mae is able to serve as a bridge between the mortgage market and American homeowners, making home loans more accessible and affordable for those who need them most. The corporation’s mission is to foster liquidity, stability, and affordability in the mortgage market and to help increase access to credit for underserved borrowers. Ginnie Mae remains a critical part of the U.S. mortgage markets and a valued resource for the underserved markets the agency serves.