Ginnie Mae’s mission is to be the “best-in-class” conduit for bringing capital into the American housing mortgage system with minimal risk to the American taxpayer.
The simple but strong business model that Ginnie Mae has built highlights the power of the Federal Government and the private sector
working together. Through the efficiency and low-cost securitization of the model, Ginnie Mae fulfills the needs and demands of various market segments
by leveraging the full faith and credit of the U.S. Government to access global capital.
Ginnie Mae's business model significantly limits the taxpayer's exposure to risk associated with secondary market transactions. Its strategy
is to guarantee a simple pass-through security to lenders rather than buy loans and issue its own securities.
Because private lending institutions originate eligible loans, pool them into securities and issue Ginnie Mae mortgage-backed securities (MBS)
, the corporation's exposure to risk is limited to the ability and capacity of its MBS Issuer partners to fulfill their
obligations to pay investors. By guaranteeing the servicing performance of the Issuer - not the underlying collateral - Ginnie Mae insulates itself
from the credit risk of the mortgage loans.