Investor Glossary-ginnie maeInvestor Glossary-ginnie maeInvestor Glossary-ginnie maeInvestor Glossary-ginnie maeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Ginnie Mae

The HTML to link to this page
 

Ginnie Mae stands for the Government National Mortgage Association. Ginnie Mae is a self financed and wholly-owned government corporation created in 1968. Ginnie Mae is part of the Department of Housing and Urban Development (i.e. HUD). Ginnie Mae guarantees timely payment of principal and interest on certain mortgage-backed securities (i.e. MBS). In particular, Ginnie Mae guarantees payment timeliness on loans backed by the Federal Housing Administration (FHA), the Department of Agriculture's Rural Housing Service (RHS) and the Department of Housing and Urban Development's Office of Public and Indian Housing (PIH). Ginnie Mae does not buy or sell mortgage-backed securities, it only insures them. Ginnie Mae protects an investor in mortgage-backed securities in the event the lender defaults. Much like with US Treasuries but unlike Fannie Mae mortgage-backed securities, a Ginnie Mae mortgage-backed security is backed in full by the US government. Ginnie Mae insures two types of mortgage-backed securities, the Ginnie Mae I MBS and the Ginnie Mae II MBS. Both offer the same guarantee but they have different specifications. A Ginnie Mae II MBS, for example, can only include single-family loans whereas a Ginnie Mae I MBS can also include multifamily loans. A lender must qualify as a Ginnie Mae issuer prior to to offering Ginnie Mae securities. To do so, such lender will need to complete the Ginnie Mae issuer application process. Examples of Ginnie Mae issuers are mortgage bankers, savings and loans, commercial banks, or credit unions.



Rate this Ginnie Mae definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: FICO score, dividends payable, VIX, average price per share, deferred tax, inflation, liquidity ratio, 144a, in escrow, per diem, command economy, annual return, open position, quality assurance, labor relations, stock market close, retained earnings, FTSE, Zero Cost Collar, diluted share, deferred revenue, debt service coverage, irrevocable trust, LIBOR, implied volatility, 401a, risk management, current ratio, 1035 exchange, option premium, EBITDA, Key Rate Duration, minority interest, wholly-owned subsidiary, required rate of return, cancelled check, real GDP, reverse mortgage, ex-dividend date, margin rate, APR, covered put, stock split, ex-dividend, class C shares, limit order, 1031 exchange, phantom income, balance sheet


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use