Government National Mortgage Association (Ginnie Mae)

The Government National Mortgage Association (commonly referred to as Ginnie Mae and abbreviated to GNMA) is a U.S. government corporation that guarantees the timely payment of principal and interest on mortgage-backed securities (MBSs) issued by approved Ginnie Mae lenders. That assurance allows the mortgage lenders to obtain a better price for these offerings in the capital markets. Those improved proceeds, in turn, allow the lenders to make additional mortgage loans, and at lower costs to finance.