Ginnie Mae & the Consumer
Ginnie Mae’s mission is to bring global capital into the housing finance system—a system that runs through the core of our nation’s economy—while minimizing risk to the US taxpayer.
Consumers are sometimes mistakenly advised that because their government-insured or government-guaranteed loans (FHA, VA, PIH, and RD) serve as collateral for Ginnie Mae-guaranteed securities, Ginnie Mae determines servicing decisions regarding their loans.
However, Ginnie Mae does not set standards for mortgages that are to be federally insured or guaranteed. Each agency that is providing the mortgage insurance or loan guarantee sets the standards for the mortgage originated and the approved lenders that participate in the Ginnie Mae program are responsible for ensuring those standards are met for consumers’ loans. These lenders have complete responsibility for servicing decisions. Ginnie Mae does not make any servicing decisions.
Though it is a common misconception, Ginnie Mae is not a lending institution and does not purchase loans from mortgage lenders, make loans to consumers, assist consumers with purchasing homes, or determine eligibility for loan modifications. Rather, Ginnie Mae is the guarantor of securities issued by approved lenders who participate in a Ginnie Mae program. Moreover, Ginnie Mae only securitizes federally-insured or government-guaranteed loans.
Please take a moment to read our Consumer Education FAQs to learn more about Ginnie Mae and the consumer.