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Government National Mortgage Association or GNMA AKA Ginnie Mae

Government National Mortgage Association or GNMA AKA Ginnie Mae

A government-owned corporation that guarantees principal and interest payments on mortgage-backed securities issued by approved lenders. This means that if a borrower defaults on their mortgage loan, Ginnie Mae will step in to ensure that investors still receive their principal and interest payments on time. Essentially, Ginnie Mae provides a guarantee to investors of mortgage-backed securities that they will receive a steady stream of income, even if some borrowers cannot meet their repayment obligations. This has helped to make these securities a popular investment option for both individual and institutional investors. Overall, Ginnie Mae’s involvement in the mortgage-backed securities market helps to improve liquidity and accessibility for borrowers while also providing a valuable source of investment for those seeking stable income streams.
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