Government National Mortgage Association
The Government National Mortgage Association (GNMA), commonly known as Ginnie Mae, is a government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Ginnie Mae plays a crucial role in the secondary mortgage market by guaranteeing securities backed by mortgages that are insured or guaranteed by federal agencies, such as the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the Rural Housing Service (RHS).
By providing a government guarantee on mortgage-backed securities, Ginnie Mae helps to stabilize the housing market, promote homeownership, and support affordable housing initiatives. It also facilitates access to capital for lenders, encourages mortgage lending, and contributes to the overall stability of the U.S. economy.