GNMA Funds

What are GNMA Funds?

Rising in value bar graphGNMA stands for the Government National Mortgage Association, known as Ginnie Mae. It is the federal agency (a corporation wholly owned by the government) that buys up mortgage loans from banks and turns them into mortgage-backed securities. As an investor in mortgage-backed securities, you become the mortgage lender. Ginnie Mae adds a guarantee to make timely interest and principal payments, even if the homeowner pays late.

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