What are GNMA (Government National Mortgage Association) Mortgage Backed Securities?
Ginnie Mae Securities and the HUD 223(f) Loan Program
Ginnie Mae (Government National Mortgage Association - GNMA) guarantees payments on mortgage backed securities consisting of pools of government-insured loans, including HUD 223(f) loans. While Ginnie Mae guarantees repayment on the MBS, it does not issue, sell, or buy securities itself and does not purchase mortgages. The fact that Ginne Mae guarantees these MBS products helps lower rates for the HUD 223(f) program and other HUD multifamily loans by making capital readily available to lenders— making it easier for borrowers to get loans.