Get Fannie Mae GeMS Guaranteed REMIC Structural And Collateral Term

Ginnie Mae bonds are backed by the full faith and credit of the U.S. Government, which means that they are considered to be one of the safest investments available. As a result, Ginnie Mae bonds typically offer yields that are higher than those of other government-backed securities, such as Treasury bonds.

We package loans we acquire into mortgage-backed securities (MBS) that we guarantee, attracting investors to the U.S. secondary mortgage market. Our financing solutions enable lenders to offer 30-year, fixed-rate mortgages, which provide homeowners stable, predictable mortgage payments over the life of their loans.

The certificates and payments of principal and interest on the certificates are not guaranteed by the U.S. Government and do not constitute a debt or obligation of the United States or any of its agencies or instrumentalities other than Fannie Mae.

Fannie Mae REMICs backed by multifamily MBS are created with customized cash flows that potentially meet the needs of a wide range of investors. They can be used as effective tools in the portfolios of insurance companies, commercial banks, pension funds, money managers and other investors.

Fannie Mae (the Federal National Mortgage Association) is sponsored by the U.S. government and can issue and guarantee MBS issues.

Risks. While MBS backed by GNMA carry negligible risk of default, there is some default risk for MBS issued by FHLMC and FNMA and an even higher risk of default for securities not backed by any of these agencies, although pooling mortgages helps mitigate some of that risk.

Fannie Mae (more about them in a minute) has lowered their required down payment for owner-occupied, multi-family (2-4 unit) properties from 15%-25% to 5%. This means you can buy a property with 5% down, live in one unit, and rent out the other 1-3 units.

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.