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Ginnie Mae

Government National Mortgage Association or GNMA

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Ginnie Mae Overview: Ginnie Mae, the Government National Mortgage Association, or GNMA, is a corporation wholly owned by the federal government and operating within the Department of Housing and Urban Development (HUD). Ginnie Mae was established in 1968, and pioneered the issuance of mortgage backed securities (MBS). It guarantees investors the timely payment of principal and interest on MBS derived from loans insured or guaranteed by these federal agencies:

  • FHA (Federal Housing Administration)
  • VA (Department of Veterans Affairs)
  • RHS (Rural Housing Service)
  • PIH (Office of Public and Indian Housing)

Unlike Fannie Mae or Freddie Mac, Ginnie Mae does NOT:

  • Buy mortgages
  • Buy, sell or issue securities
  • Use derivatives to hedge

Instead, Ginnie Mae:

  • Guarantees MBS issued by financial institutions that it approves
  • Derives revenues from fees assessed on these MBS
  • Earns interest on a portfolio of U.S. Treasury securities
  • Has been strongly profitable throughout its history
  • Never has required funding from general federal revenues

Size: Ginnie Mae reports these figures as of 9/30/07, the end of its fiscal year:

  • Cumulative MBS guaranteed = $2.6 trillion
  • Outstanding guaranteed MBS balance = $427.6 billion
  • New MBS issued in fiscal 2007 = $85.1 billion
  • Revenues in fiscal 2007 = $791 million
  • Capital Reserves = $12.6 billion
  • Employees = 70

Employment Outlook: As a small organization with only 70 employees, employment opportunities are minimal, except in the case of specialists with unique skills.

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