The common nickname for the Government National Mortgage Association (GNMA). Ginnie Mae guarantees pass-through securities that are backed by pools of home mortgages. Ginnie Mae occasionally comes under fire for its unfair competitive advantage over private businesses. Because Ginnie Mae was started by the federal government but functions as a private business, there is a perception that in the event of a default the U.S. government would bail out Ginnie Mae. That perception allows Ginnie Mae to borrow funds in the market more cheaply than its competitors. There have been no defaults to determine what the actual procedure would be.