Ginnie Mae Logo
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 Mae’s 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 nation’s 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 nation’s 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 HUD’s goal of pro- viding low-cost mortgage credit to traditional- ly underserved sectors of the housing market. Ginnie Mae’s mission and goals, as well as its programs, products and initiatives for Fiscal Year 2001, are described in the following pages. 5 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