rate write downs in accordance with the Soldiers and Sailors Civil Relief Act, and loan buyouts after 90 days of forbearance for individuals and military personnel affected by the tragedy. Ginnie Mae continues to fulfill its mandate to promote access to mortgage credit throughout the Nation by increasing the liquidity of investment capital available to the residential mortgage finance market.  Ginnie Mae’s Targeted Lending Initiative (TLI) has been tremendously effective in helping to increase homeownership levels in targeted central city communities by focusing additional investment funding on targeted underserved areas.  In Fiscal Year 2001, $6.8 billion in targeted lending pools were issued.  Additionally, Ginnie Mae expanded its TLI to include Rural Empowerment Zones and Rural Enterprise Communities, an important vehicle for lenders who may now offer more competitive interest rates on mortgages for properties located in the targeted areas. Ginnie Mae’s Real Estate Mortgage Investment Conduit (REMIC) product continues to play a major role in increasing liquidity and the availability of mortgage funds to low- and moderate- income and first-time homebuyers.  The REMIC program was designed to greatly improve the availability of funds and has met its challenge.  In 2001, for the third year in a row, this product recorded its highest ever production levels.  Ginnie Mae guaranteed 55 REMIC transactions in Fiscal Year 2001, totaling $25.8 billion, up from $25 billion in Fiscal Year 2000.  Ginnie Mae is pleased with REMIC’s contribution to expanding affordable housing and expects continued growth with this product through product innovations, program enhancements, investor educa- tion, and competitive pricing.  Ginnie Mae remains committed to increasing liquidity and efficiencies in its multiclass securities program. Ginnie Mae’s commitment to, and presence in, the capital markets provides continuous opportu- nities to meet new challenges, to seek greater efficiencies and economies of scale, and to further refine our efforts to achieve the corporation’s mission and goals.  Ginnie Mae is a committed partner to the private sector in meeting our objectives for increased liquidity and a stable market. Ginnie Mae is proud of its role as a market innovator, as we continuously seek new, creative ways to meet our goals.  Ginnie Mae’s strong relationships with the private sector allow us to comple- ment private market operations, utilizing the full faith and credit guaranty of the United States Government where needed, yet not compete with private firms. The enclosed Annual Report provides more detail on our important programs and initiatives, our performance in Fiscal Year 2001, and the stewardship of our funds and other resources. Ginnie Mae’s management initiatives include a strengthened emphasis on performance and accountability through a commitment to the Government Performance and Results Act (GPRA). We are proud of our continued accomplishments and of the Department’s historic role in help- ing to make the American dream of homeownership a reality for millions of low- and moderate- income American families. Sincerely, Ronald A. Rosenfeld President 4 G i n n i e   M a e   A n n u a l   R e p o r t   2 0 0 1