I.
Overview of Ginnie Mae®
The Government National Mortgage
Association (Ginnie Mae), through its full faith
and credit of the United States guaranty, has
helped to finance homeownership opportuni-
ties for 26.8 million American families.
Ginnie Mae guarantees the timely payment
of principal and interest on securities issued
by private institutions and backed by pools of
Federally-insured or guaranteed mortgage
loans. In Fiscal Year 2001, Ginnie Mae-guar-
anteed securities financed 98 percent of all
eligible loans insured or guaranteed by the
Department of Housing and Urban
Development (HUD), the Federal Housing
Administration (FHA), and the Department
of Veterans Affairs (VA). Ginnie Mae-guaran-
teed securities also financed eligible loans
insured or guaranteed by the Rural Housing
Service (RHS) and the HUD Office of Public
and Indian Housing (PIH). Ginnie Mae
receives no funds from general tax revenues.
Operations are financed by a variety of fees,
including Guaranty Fees, New Issuer Fees,
Commitment Fees, Handling Fees, and
Transfer of Servicing Fees. Approximately
95 percent of Ginnie Maes fee income is gen-
erated by its Guaranty and Commitment Fees
that are paid by participating issuers.
Through a 1968 amendment to Title III of
the National Housing Act, Ginnie Mae was
established as a wholly-owned government
corporation within HUD to promote access
to mortgage credit throughout the nation.
Ginnie Mae is administered by the Secretary
of HUD and the President of Ginnie Mae,
who are both appointed by the President of
the United States and confirmed by the
United States Senate.
Ginnie Mae serves the American public and
the housing industry by helping to ensure a
stable lending environment that leads to
affordable rates and increased opportunities
for more Americans to own their own homes.
Ginnie Mae provides liquidity to the second-
ary mortgage market by attracting capital
from the nations capital markets into the resi-
dential mortgage markets. This activity helps
to keep mortgage rates lower and to make
more mortgages available.
From its dynamic beginning, Ginnie Mae
emerged as the pioneer in the development of
the Mortgage-Backed Securities (MBS) pro-
gram. The MBS program provides a vehicle
to efficiently and effectively generate capital by
providing lenders with the liquidity to main-
tain a steady supply of credit available for
housing. This availability of capital backed by
the full faith and credit guaranty of the United
States Government, has directly contributed to
the nations record high homeownership.
Today, the mortgage finance industry faces
challenges that demand creative leadership
and innovative solutions. These challenges
include competitive pressures that increase
risks, industry consolidation, and the implica-
tions of new technology. Ginnie Mae helps
the industry to meet these challenges and
simultaneously supports HUDs goal of pro-
viding low-cost mortgage credit to traditional-
ly underserved sectors of the housing market.
Ginnie Maes mission and goals, as well as its
programs, products and initiatives for Fiscal
Year 2001, are described in the following pages.
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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