Government National Mortgage Association (GNMA)

Government-owned corporation, nicknamed Ginnie Mae, which is an agency of the U.S. Department of Housing and Urban Development. GNMA guarantees, with the full faith and credit of the U.S. Government, full and timely payment of all monthly principal and interest payments on the mortgage-backed Pass-Through Securities of registered holders. The securities, which are issued by private firms, such as Mortgage Bankers and savings institutions, and typically marketed through security broker-dealers, represent pools of residential mortgages insured or guaranteed by the Federal Housing Administration (FHA), the Farmer's Home Administration (FmHA), or the Veterans Administration (VA). See also Federal Home Loan Mortgage Corporation; Federal National Mortgage Association; Ginnie Mae Pass-Through.

A government organization to assist in housing finance. Nicknamed ginnie mae, there are two main programs:

1. To guarantee payments to investors in mortgage-backed securities

2. to absorb the write-down of low-interest rate loans that are used to finance low-income housing

See secondary mortgage market.
Example: Good Money Mortgage Bankers, who have originated $3 million of fha and va mortgages, have issued participation mortgage certificates, backed by the mortgages, to investors. GNMA guarantees the participation certificates. See pass-through certificates.