Get The Depth Of Negative Equity And Mortgage Default - Federal Reserve - Federalreserve

Ginnie Mae guarantees MBS assembled from mortgages explicitly insured by Federal government agencies, primarily the Federal Housing Administration (FHA) and Veterans Affairs (VA).

Ginnie Mae, backed by the full faith and credit of the U.S. government, guarantees that investors receive timely payments. Fannie Mae and Freddie Mac also provide certain guarantees and, while not backed by the full faith and credit of the U.S. government, have special authority to borrow from the U.S. Treasury.

Depending on the issuer, an MBS may or may not be guaranteed. There are four main MBS issuers: Fannie Mae (the Federal National Mortgage Association) is sponsored by the U.S. government and can issue and guarantee MBS issues.

Fannie Mae and Freddie Mac are federally backed home mortgage companies created by the United States Congress. Neither institution originates or services its own mortgages. Instead, they buy and guarantee mortgages issued through lenders in the secondary mortgage market.

What Is a Mortgage Putback? A mortgage putback (also known as a buyback) is the forced repurchase of a mortgage by a mortgage originator from the entity currently holding the mortgage security, such as an institutional investor.

Guarantees and subsidies The FHLMC states, "securities, including any interest, are not guaranteed by, and are not debts or obligations of, the United States or any agency or instrumentality of the United States other than Freddie Mac." The FHLMC and FHLMC securities are not funded or protected by the US Government.