Today, lenders pool packages of qualifying FHA, VA, RHS or PIH mortgages and convert them into securities. Ginnie Mae guarantees investors the timely payment of principal and interest on these securities.
In a single step, the issuance of Ginnie Mae mortgage-backed securities converts individual mortgages into safe, liquid securities for investors around the world. Ginnie Mae thus helps channel global capital into American housing markets, helping make more mortgages available.
This has been going on since the depression era..