Ginnie Mae

From MarketsWiki
Jump to: navigation, search


Government National Mortgage Associaton
Key People Joseph J. Murin, President
Products Government-backed mortgage loans
Website www.ginniemae.gov


"Ginnie Mae" is the commonly used nickname for the U.S. Government National Mortgage Association (GNMA). Its stated goal is to expand affordable housing in the U.S. by linking global capital markets to the nation's housing markets.

Ginnie Mae guarantees investors payment of principal and interest on mortgage-backed securities backed by federally insured or guaranteed loans. These are mainly loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA). Other guarantors or issuers of loans eligible as collateral for Ginnie Mae MBS include the U.S. Department of Agriculture's Rural Housing Service (RHS) and the Department of Housing and Urban Development's Office of Public and Indian Housing (PIH).[1]

Ginnie Mae does not buy or sell loans or issue mortgage-backed securities.

An interesting note is that the first financial instrument introduced at the Chicago Board of Trade in 1975 was GNMA futures. These preceded even Treasury bond futures, the CBOT's blockbuster futures contract. The advertising campaign for GNMA futures featured a Marilyn Monroe-looking character (her name? -- Ginnie Mae).


References

  1. About Ginnie Mae. Ginnie Mae.