Ginnie Mae’s mission is to be the “best-in-class” conduit for bringing capital into the American housing mortgage system with minimal risk to the American taxpayer.
The simple but strong business model that Ginnie Mae has built highlights the power of the Federal Government and the private sector working together. Through the efficiency and low-cost securitization of the model, Ginnie Mae fulfills the needs and demands of various market segments by leveraging the full faith and credit of the U.S. Government to access global capital.
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Because private lending institutions originate eligible loans, pool them into securities and issue Ginnie Mae mortgage-backed securities (MBS) , the corporation's exposure to risk is limited to the ability and capacity of its MBS Issuer partners to fulfill their obligations to pay investors. By guaranteeing the servicing performance of the Issuer - not the underlying collateral - Ginnie Mae insulates itself from the credit risk of the mortgage loans.