A government agency that guarantees mortgage-backed securities composed of federally insured loans like FHA and VA loans.
Why Ginnie Mae matters on the exam
This term belongs to Financing. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Ginnie Mae
Every Freehold question shows why the right answer is right — and cites its source.
Unlike Fannie Mae and Freddie Mac, Ginnie Mae:
Is a government-owned corporation that guarantees securities backed by FHA, VA, and USDA loans
Is a privately owned, for-profit corporation that is publicly traded on a national stock exchange
Purchases only conventional conforming loans that meet Fannie Mae's guidelines
Sets the maximum interest rate lenders may lawfully charge on every federally backed mortgage loan
Show answer & explanation
Is a government-owned corporation that guarantees securities backed by FHA, VA, and USDA loans — Ginnie Mae is a wholly government-owned corporation that guarantees mortgage-backed securities backed by pools of FHA, VA, and USDA loans, rather than buying loans itself like Fannie Mae or Freddie Mac.
Source: PSI National Real Estate Exam Content Outline §4 Financing
The full faith and credit backing of the U.S. government applies to securities guaranteed by:
Fannie Mae only
Ginnie Mae
Freddie Mac only
All private mortgage insurers
Show answer & explanation
Ginnie Mae — Because Ginnie Mae is a government-owned entity, its mortgage-backed securities carry the explicit full faith and credit guarantee of the U.S. government, unlike Fannie Mae and Freddie Mac securities.
Source: PSI National Real Estate Exam Content Outline §4 Financing
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