Ginnie Mae helps to make affordable housing a reality for millions of low- and moderate-income households across America by channeling global capital into the nation’s housing markets. Specifically, the Ginnie Mae guaranty allows mortgage lenders to obtain a better price for their mortgage loans in the secondary mortgage market. The lenders can then use the proceeds to make new mortgage loans available.
Ginnie Mae’s origins trace back to the Great Depression, when historically high unemployment rates led to an unprecedented wave of loan defaults.