Ginnie Mae

Unlike Fannie Mae, which is a GSE, Ginnie Mae is a wholly-owned government corporation within the Department of Housing and Urban Development (HUD). Ginnie Mae does not technically "buy" loans in the same way Fannie Mae does; instead, it focuses on guaranteeing the securities issued by private institutions that are backed by pools of government-insured loans (specifically FHA and VA loans). Ginnie Mae is unique because it is the only secondary market participant whose securities are backed by the "full faith and credit" of the U.S. government. This guarantee makes Ginnie Mae mortgage-backed securities extremely safe investments, ensuring that investors are paid even if the underlying borrowers default.