Article: Ginnie Mae: a tale of two entities; The plummeting market share of Ginnie Mae leads directly to the door of the Federal Housing Administration. Weak FHA production has weighed down any progress Ginnie Mae has made to regain lost market share. The decline has led even some in Congress to start asking questions.(Government National Mortgage Association)(Federal Housing Administration )

IN RECENT TIMES, THE INSTRUMENTS OF federal housing policy (helped by low interest rates) have produced this country's highest rate of homeownership ever--cresting at 69 percent in 2004. The U.S. housing finance system has one of the most efficient and liquid secondary mortgage markets in the world today. Yet, there are many wondering whether some tinkering may be in order for the very organization that really started things off.

The Government National Mortgage Association, or Ginnie Mae, played a pivotal role in the success of the early residential mortgage-backed securities market. The world of securitization was in its infancy when Ginnie Mae first began ...

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