06 Dec Ginnie Mae: How Does it Work and What Does it Do? in Housing
BPC Action believes that while housing is one of the major drivers of the U.S. economy, current federal housing policy is ill-equipped to respond to the many housing challenges facing the U.S. today. We support reforming our broken housing finance system and creating a healthy, stable, and affordable housing market in order to ensure a strong economy and a globally competitive country. The following information is from the Bipartisan Policy Center, our 501(c)(3) affiliate.
The Government National Mortgage Association (or Ginnie Mae) is a government corporation within the U.S. Department of Housing and Urban Development (HUD). It was established in 1968 when Fannie Mae was privatized. Its mission is to expand funding for mortgages that are insured or guaranteed by other federal agencies. When these mortgages are bundled into securities, Ginnie Mae provides a full-faith-and- credit guarantee on these securities, thus lessening the risk for investors and broadening the market for the securities.