Ginnie Mae Investing
CD and money market accounts currently offer dismal returns. What is an investor to do get higher returns, yet not drastically increase risk? As I mentioned in my 4% Rule to Investing, Ginnie Maes are a good possible alternative. Who is Ginnie and does she have anything to do with Fannie and Freddie? Ginnie Mae, otherwise known as the Government National Mortgage Association, is a U.S. government-owned corporation within the Department of Housing and Urban Development (HUD). Ginnie Mae provides guarantees on mortgage-backed securities (MBS) backed by federally insured or guaranteed loans, mainly loans issued by the Federal Housing Administration, Department of Veterans Affairs, Rural Housing Service, and Office of Public and Indian Housing. Ginnie Mae securities are the only MBS that are guaranteed by the United States government. Ginnie Mae, which extracts fees for guaranteeing mortgage investors are repaid, is a smaller and more conservative player in the mortgage market than Fannie Mae and Freddie Mac were.
“How to Make a Fortune from the Biggest Bailout in U.S. History” – Book Review
It’s been said many investors profited from the Great Depression. What on the surface was a horrible period, made many people wealthy in the long run, and also advanced the theory of investing. After all, Benjamin Graham wrote the classic book “Security Analysis” in 1934. I think the same can be said from the “Great Recession” that we are currently experiencing. Money is made when everyone is heading towards the exits, not when everyone else is buying. The past two years have opened up some great opportunities to invest, and might be some of the best ones we’ll see in our lifetime. Change can be good, if you know what to look for. Ron Insana of CNBC fame, and x-hedge fund manager decided to offer his guidance on the subject. Mr. Insana’s book is called ”How to Make a Fortune from the Biggest Bailout in U.S. History”. If you are an investor junkie like me (sorry I couldn’t resist), you know who Ron is, and you have seen his familiar face on CNBC for many years.
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