Ginnie Mae
Definition of "Ginnie Mae"
Looking to understand what is Ginnie Mae? You’ve been hearing about it and knows not what it means. Let us help with the most succinct Ginnie Mae definition possible: Ginnie Mae is the Government National Mortgage Association (GNMA). It’s basically the phonetic sound of the initials. Say “GNMA” quickly and you get the “Ginnie Mae” sound.
The mission of Ginnie Mae is to fund high-risk mortgages for high-risk borrowers that are typically located in areas approved for government construction projects that have no other funding sources. The government body also offers guarantee mortgages issued by others, such as commercial banks, mortgage banks, and insurers.
You can’t tell Ginnie Mae’s history without talking about Fannie Mae. Ginnie Mae is almost like a younger sister or spiritual daughter of Fannie Mae. Here’s the timeline: Fannie Mae was founded in the 1930’s as a fully government-owned company, then became a mixed-ownership company, and then, in 1968, when it came time to go full private sector, the Government thought it was important to conserve a similar federal operation, thus spawning Ginnie Mae and making it part of the Department of Housing and Urban Development (HUD) in order to expand affordable housing finance. Ginnie Mae is the primary financing mechanism for all mortgage loans that are government-insured.
Don’t know if you qualify for Ginnie Mae and this whole names-galore – yes, because we didn’t even bring up the Freddie Mac definition to make it simple – is it making you confused? Reach out to a real estate agent and let him (or her!) point out the best direction for your case.
Popular Real Estate Terms
Burdens one parcel of land (the servient estate) for the benefit of another parcel (the dominant estate). ...
maintenance procedures conducted to prevent later repairs and furthering a longer useful life. For example, many boilers and burners are cleaned and serviced each year before the winter ...
Individual who will receive an inheritance upon the death of another. The proceeds of an insurance policy may be in a lump sum annuity. Real estate also passes to the beneficiary. ...
To sign a note on behalf of another individual and, therefore, to guarantee payment. The cosigner is responsible for the loan if the borrower defaults. Such an agreement may occur in ...
(1) Written statement by a responsible individual or entity of the correctness and reliability of something. (2) Written permission to do something, such as receiving a real estate ...
The result of an act or a fact. ...
The Latin term pro rata has a significant meaning in legal, real estate as well as job industries. To define pro rata, anyone can take a quick vocabulary lesson. Any element that is split ...
Day the attachment of property under a judicial order becomes effective. ...
The meaning of an undisclosed principal in everyday use often refers to a confidential client who intends to keep their identity hidden. Typically, this individual remains in the background ...
Have a question or comment?
We're here to help.