Business and Personal Finance Dictionary

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• GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMAS OR GINNIE MAE)
  
  When the government split off Fannie Mae into a private corporation, it split Fannie Mae into two parts. Ginnie Mae is the second part. Ginnie Mae is wholly owned by the U.S. government. Ginnie Mae issues 'Modified Pass Through certificates'. These certificates represent an interest in a pool of mortgages. The pool includes mortgages from the VA, FHA insured mortgages, and Farmers Home Administration guaranteed mortgages. As people make their mortgage payments, the proportionate share passes through to the investor. Payments to the investor are paid monthly. Each payment the investor receives is part interest and part principal. After all, when a person pays their mortgage, they are paying part interest and part principal. The minimum denomination is $25,000. These bonds are backed by the full faith and credit of the U.S. government. The interest is subject to state and local taxes.
  
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