What types of mortgage-backed securities (MBS) does Ginnie Mae guarantee or issue?

Ginnie Mae, also known as the Government National Mortgage Association, plays a critical role in the mortgage-backed securities market by guaranteeing various types of mortgage-backed securities. Specifically, Ginnie Mae focuses on supporting affordable housing through its programs and does this primarily by backing securities that are made up of federally insured or guaranteed loans. The most common types of mortgage loans that Ginnie Mae guarantees include loans from the Federal Housing Administration, the Veterans Administration, and the USDA Rural Development program. Ginnie Mae does not issue or sell securities itself; rather, it guarantees the timely payment of principal and interest on MBS that are issued by approved private lenders. This guarantee provides a level of security to investors, making Ginnie Mae MBS an attractive investment option. These mortgage-backed securities are typically known as Ginnie Mae I and Ginnie Mae II securities. Ginnie Mae I securities are backed by a single pool of loans that typically have the same characteristics, while Ginnie Mae II securities allow for more flexible structuring, such as including loans with different original maturities or interest rates in a single security. This flexibility accommodates a broader range of mortgage products and investors. By guaranteeing these types of securities, Ginnie Mae helps to ensure a steady flow of capital into the housing market, which supports homeownership and affordable rental housing options across the United States. The information about the specifics on Ginnie Mae's mortgage-backed securities and any updates can often be found on their official website, which would be a valuable resource for further inquiry.