CHAPTER 11
Ginnie Mae—The Misunderstood Instrument 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
“God gives every bird its food, but does not throw it in the nest.”
Do I Need to Read This Chapter? • Am I looking for an excellent, safe, long-term investment? • Am I aware of Ginnie Maes? Of Ginnie Mae mutual funds and trust funds? • Do I understand the relation between Ginnie Maes, current interest rates, and mortgage rates? • What are Fannie Maes and Freddie Macs? Are they cousins to Ginnie Mae? f I had to choose the most misunderstood financial instrument from among the many about which I write, I would pick the government-insured mortgage.
I
What Is a Ginnie Mae? The Government National Mortgage Association (GNMA) was formed by Congress in 1968 as a branch of the Department of Housing and Urban Development. Its objective was to buy government-insured mortgages, similar
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