What Is the Government National Mortgage Association?
The Government National Mortgage Association is a federally related institution that participates in the United States secondary residential mortgage market. It is commonly known as Ginnie Mae. The association, along with two other institutions, issues mortgage-backed securities that enhance the liquidity of the mortgage market. It guarantees the securities under the authority of the United States government. There are three associations that facilitate the functioning of the residential mortgage market in the United States. These are Fannie Mae, Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac) and the Government National Mortgage Association. Of the three, the Government National Mortgage Association is the only federally related institution. Fannie Mae and Freddie Mac are government-sponsored enterprises, which means they were created by the federal government for a specific purpose, but they are publicly owned.
