How does Ginnie Mae differ from Fannie Mae and Freddie Mac?

Ginnie Mae, also known as the Government National Mortgage Association (GNMA), differs from Fannie Mae and Freddie Mac in several key ways. Firstly, while Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs), Ginnie Mae is an agency of the federal government itself. Secondly, Ginnie Mae primarily focuses on insuring mortgage-backed securities (MBS) backed by loans insured by the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and other government agencies. In contrast, Fannie Mae and Freddie Mac guarantee and securitize conventional mortgage loans. Additionally, Ginnie Mae securities carry an explicit guarantee from the U.S. government, unlike Fannie Mae and Freddie Mac, whose securities come with an implicit guarantee. Lastly, Ginnie Mae's objective is to support affordable housing and promote homeownership for low-to-moderate-income borrowers, while Fannie Mae and Freddie Mac have broader goals including providing liquidity to the mortgage market.