Ginnie Mae (Government National Mortgage Association)

Ginnie Mae, or the Government National Mortgage Association, is a government-backed organization that helps make mortgage loans more accessible by providing a guarantee on mortgage-backed securities. When investors buy these securities, Ginnie Mae ensures they will receive timely payments of principal and interest, backed by the U.S. government. This guarantee lowers the risk for investors, encouraging them to buy these securities, which in turn helps lenders offer more affordable mortgage loans to homebuyers, including those with lower income or less credit history. Ginnie Mae's role supports a stable, liquid mortgage market and promotes homeownership.