Washington, DC – Today, the Government National Mortgage Association (Ginnie Mae) announced that it will create a new security type backed by fixed-rate Federal Housing Administration (FHA) refinance loans originated to delinquent borrowers and refinance loans to borrowers with second liens.

"We are proud to support FHA's efforts to assist even more borrowers by providing an efficient securitization vehicle for homeowners with special needs," said Thomas R. Weakland, Acting Executive Vice President of Ginnie Mae. "Securitizing these loans in custom pools provides significantly lower rates for these new borrowers and ensures that investors have access to critical information about these loans."

The new security will be a multiple-issuer pool type under the Ginnie Mae II Mortgage-Backed Securities Program, and will be available for pool issuances beginning December 1, 2007.

"The creation of this new security is an example of how Ginnie Mae helps to expand access to affordable housing for borrowers by linking the capital markets to the nation's housing markets," said Weakland.

Ginnie Mae is a wholly owned government corporation within the U.S. Department of Housing and Urban Development. Ginnie Mae pioneered the mortgage-backed security (MBS), issuing the very first security in 1970. An MBS enables a mortgage lender to aggregate and sell mortgage loans as a security to investors. Ginnie Mae securities carry the full faith and credit guaranty of the United States government, which means that, even in difficult times, an investment in Ginnie Mae is one of the safest an investor can make.