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The Government National Mortgage Association (Ginnie Mae) is the bureau, placed under the Department of Housing and Urban Development, that converts government guaranteed mortgages into mortgage-backed securities for investors to buy. Their originations have been 57 percent FHA loans, 40 percentage VA loans, and 3% loans from government programs, mainly the Department of Agriculture. For many years, as we have written about this, Ginnie Mae was worried about the considerably higher rate of payments of their VA loans in its portfolio when compared to people originated by its other guarantors and into the government sponsored enterprises (GSEs) Freddie Mac and Fannie Mae. Some of the increased rates result from the reduced costs of refinancing a VA mortgage when compared with other…(read more)

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Posted To: MND NewsWire