A security issued by the Government National Mortgage Association and secured by mortgages serviced by certain federal agencies.
(proper, informal) Government National Mortgage Association: a federal agency which purchases mortgages from lending institutions with funds raised by the sale of government-backed securities.
(proper) Any of the securities issued by this agency.
(US) Government National Mortgage Association.
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.
Origin of ginnie-mae
- Alteration of G(overnment) N(ational) M(ortgage) A(ssociation)
From American Heritage Dictionary of the English Language, 5th Edition
- Girls' names containing the letters GNMA of the abbreviation in sequence. Compare Fannie Mae, Freddie Mac.