Ginnie Mae’s Single-Family Program is the conduit for government mortgage lending to the world-wide capital markets. This program allows borrowers in government programs to reap the benefits of the full faith and credit of the United States by adding liquidity into the market in order to lower their borrowing costs.
The majority of Ginnie Mae securities are backed by single-family mortgages originated through the Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture’s Rural Development (RD), and Public and Indian Housing (PIH) insurance programs. In Fiscal Year (FY) 2012, approximately 100 percent of FHA fixed-rate single-family loans and 98 percent of VA fixed-rate single-family insured/guaranteed loans were securitized into Ginnie Mae pools by approved Issuers. At the end of FY 2012, investors held $1.2 trillion in outstanding single-family Ginnie Mae mortgage-backed securities (MBS).
Unlike other entities, Ginnie Mae does not originate or invest in mortgage loans directly. Rather, Ginnie Mae is the guarantor of securities issued by approved lenders who participate in our programs.