Definition: Ginnie Mae, the Government National Mortgage Association, is a federal government corporation that guarantees timely principal and interest payments on qualifying mortgage-backed securities.
Example
An approved issuer pools eligible government-backed loans into securities carrying a Ginnie Mae guarantee.
Keep the distinction clear
Ginnie Mae does not directly make home loans or buy the underlying mortgages in its ordinary business model. Its securities guarantee is distinct from FHA insurance or VA guarantees on individual loans.
Related terms
Fannie Mae · Freddie Mac · Nonconventional Loan
Keep studying
Primary and Secondary Mortgage Markets: Fannie Mae, Freddie Mac, and Ginnie Mae
References: Ginnie Mae: how its securities guarantee works
Pronunciation (US): JIN-ee may (capitals show stress)
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