Ginnie Mae

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Ginnie Mae


Ginnie Mae is the popular term for the Government National Mortgage Association (Ginnie Mae Website). Ginnie Mae guarantees large pools of mortgages, which makes them easier to resell on the secondary market to investors.

Ginnie Mae does not actually buy or sell loan or issue mortgage backed securities. Instead, Ginnie Mae guarantees loans insured by the Federal Housing Administration, the Department of Veterans Affairs, and other federally insured loans.

Unlike the FHA or VA, which insure individual loans, Ginnie Mae guarantees the timely payment of interest and principal on mortgage backed securities, or a pool of loans.

Ginnie Mae I MBS (mortgage backed securities) require all the mortgages in a pool to be of the same type, for example condominiums or single family homes. The interest rates must all also be the same, and the minimum pool size is $1,000,000.

Ginnie Mae II MBS allow more variety, including multiple issuers, a wider range of coupons, and various service fees. The minimum pool size is $250,000.

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