Ginnie Mae

In 1934, Congress passed the National Housing Act in response to the Depression’s effect on the housing market. The Act gradually changed over the years, and in 1968, Congress established the Government National Mortgage Association, AKA Ginnie Mae, as a government owned corporation within the Department of Housing and Urban Development. Ginnie Mae now offers the only mortgage backed securities that offer the full faith of the United States government.

Ginnie Mae Mortgage Securities

Ginnie Mae is the pioneer of mortgage backed securities. Just before Ginnie Mae was established, many mortgage companies were having issues with lack of funds. At that time, mortgage lenders would issue a loan, and file the mortgage away until the principal was paid off. This process created a ceiling for the number of new mortgages that could be issued. Ginnie Mae solved this problem by creating mortgage backed securities

Ginnie Mae’s Mission Statement is “To expand affordable housing in America by linking global capital markets to the nation’s housing markets.” They use the following three goals to fulfill their mission statement: Excellence in Customer Service, Leadership Role in the Industry, and Integrity and Excellence in Financial Management.

Ginnie Mae Mortgage Products

Ginnie Mae is not a mortgage lender; they provide lenders with funds that they can issue to borrowers. Ginnie Mae suggests looking for a lender who provides government loan programs such as FHA, VA, Native American Programs, and Rural Housing Service (RHS). If you are a US Veteran, Native American, or live in the rural United States, these programs are worth considering. Each of these programs benefits low and moderate income individuals, with special circumstances, who are searching for a home. Ginnie Mae also suggests looking for State and Local Housing Programs. Ginnie Mae’s Targeted Lending Initiative (TLA), for example, targets areas that traditionally have been underserved in mortgage lending, and provides them with increased mortgage loan availability. This service has also proved especially beneficial for low to moderate income borrowers.

One particularly popular Ginnie Mae product is the Adjustable Rate Mortgage-Backed Securities. Thos program provides a standardized program for pooling ARMs to access capital markets. This program can accommodate the FHA 1 Year ARM, the VA 1 Year ARM, and the three, five, seven, and ten year Hybrid ARMs.

Ginnie Mae operates in full compliance with the Fair Housing Act of 1968. They do not discriminate against, not encourage discrimination against borrowers based on their sex, religion, age, disability, familial status, national origin, race, or color.

Ginnie Mae’s headquarters are in Washington D.C. They serve the entire United States.

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