Government National Mortgage Association [GNMA] Law and Legal Definition

The Government National Mortgage Association (GNMA) is a federal corporation promoting home ownership. It was established by the U.S. government in 1968. It is also known as Ginnie Mae. The GNMA guarantees by allowing mortgage lenders to obtain a better price for their loans in the capital market. The GNMA purchases residential mortgages originated by local lenders and issues federally insured securities backed by these mortgages. This also helps to lower financing costs and create opportunities for sustainable, affordable housing for families seeking home ownership.

All powers and duties of the GNMA are vested in the Secretary of Housing and Urban Development. It is administered under the direction of the Secretary. The Secretary determines the general policies governing operations of the GNMA. It also has power to adopt, amend, and repeal bylaws governing the performance of the powers and duties granted to or imposed upon it by law.[Government Nat'l Mortg. Asso. v. Terry, 608 F.2d 614, 619 (5th Cir. Ga. 1979)]