Prospectus - GNMA I MBS (Serial Note Securities)

• Legal Form Number: HUD-1734
• Issuer: Ginnie Mae
• Section: Ginnie Mae

Prospectus

Ginnie Mae I

Serial Note Securities

U.S. Department of Housing

and Urban Development

Government National Mortgage Association

$

Previous editions are obsolete. Page 1 of 10 form HUD 1734 (01/2006)

Appendix IV-7 ref. Ginnie Mae Handbook 5500.3, Rev. 1

Issued by:

% Ginnie Mae I Mortgage-Backed Serial Notes

(Single-Family Mortgages)

Guaranteed as to the Timely Payment of Principal and Interest

by the Government National Mortgage Association

(Backed by the Full Faith and Credit of the United States)

Ginnie Mae Pool No.:

First Payment Due:

Issue Date:

Scheduled Maturities Extending

From:

To:

Depository:

The Federal Reserve Bank of New York

Transfer Agent:

The securities offered hereby (the “Securities”) provide for timely payment of interest on the

fifteenth day of each month, except as stated herein, commencing in the month following the

month of issuance, and principal on or before the maturity date of each Serial Unit represented

by the Securities. Interest will accrue on the Securities at the per annum rate specified above.

Principal distributions on the Securities will represent the aggregate of principal payments for the

underlying pool of Mortgages described herein. On each payment date, such amounts will be

allocated among the Securities in sequential order on the basis of the Serial Unit (or Units)

represented by each Security. See “Maturity, Prepayment, and Yield” herein for a discussion of

certain significant factors that should be considered by prospective investors in the Securities

offered hereby.

The Government National Mortgage Association (“Ginnie Mae”) guarantees the timely payment

of principal and interest on the Securities. The Ginnie Mae guaranty is backed by the full faith

and credit of the United States of America.

The Securities are exempt from the registration requirements of the Securities Act of 1933, as

amended, and are “exempted securities” within the meaning of the Securities Exchange Act of

1934, as amended.

Ginnie Mae Guaranty

Ginnie Mae is a wholly-owned corporate instrumentality of the United States of America within

the Department of Housing and Urban Development with its principal office at 451 Seventh

Street, S.W., Washington, D.C. 20410. Timely payment of principal of and interest on the

Previous editions are obsolete. Page 2 of 10 form HUD 1734 (01/2006)

Appendix IV-7 ref. GinnieMae Handbook 5500.3, Rev. 1

Securities is guaranteed by Ginnie Mae pursuant to Section 306(g) of the National Housing Act

of 1934, as amended (the “National Housing Act”). Section 306(g) provides that “[t]he full faith

and credit of the United States is pledged to the payment of all amounts which may be required

to be paid under any guaranty under this subsection.” An opinion, dated December 9, 1969, of

William H. Rehnquist, Assistant Attorney General of the United States, states that such

guaranties under Section 306(g) of mortgage-backed securities of the type offered hereby are

authorized to be made by Ginnie Mae and “would constitute general obligations of the United

States backed by its full faith and credit.”

Borrowing Authority–United States Treasury

Ginnie Mae, in its corporate capacity under Section 306(d) of the National Housing Act, may

issue to the United States Treasury its general obligations in an amount outstanding at any one

time sufficient to enable Ginnie Mae, with no limitations as to amount, to perform its obligations

under its guaranty of the timely payment of the principal of and interest on the Securities offered

hereby. The Treasury is authorized to purchase any obligations so issued.

Securities is guaranteed by Ginnie Mae pursuant to Section 306(g) of the National Housing Act

of 1934, as amended (the “National Housing Act”). Section 306(g) provides that “[t]he full faith

and credit of the United States is pledged to the payment of all amounts which may be required

to be paid under any guaranty under this subsection.” An opinion, dated December 9, 1969, of

William H. Rehnquist, Assistant Attorney General of the United States, states that such

guaranties under Section 306(g) of mortgage-backed securities of the type offered hereby are

authorized to be made by Ginnie Mae and “would constitute general obligations of the United

States backed by its full faith and credit.”

Borrowing Authority–United States Treasury

Ginnie Mae, in its corporate capacity under Section 306(d) of the National Housing Act, may

issue to the United States Treasury its general obligations in an amount outstanding at any one

time sufficient to enable Ginnie Mae, with no limitations as to amount, to perform its obligations

under its guaranty of the timely payment of the principal of and interest on the Securities offered

hereby. The Treasury is authorized to purchase any obligations so issued.

The Treasury Department has indicated that it will make loans to Ginnie Mae, if needed, to

implement the aforementioned guaranty as stated in the following letter:

The Secretary of the Treasury

Previous editions are obsolete. Page 2 of 10 form HUD 1734 (01/2006)

Appendix IV-7 ref. Ginnie Mae Handbook 5500.3, Rev. 1

Washington February 13, 1970

Dear Mr. Secretary:

I wish to refer to your letter of November 14, 1969 asking whether t he timely pa yment of principal and

interest on mortgage-backed securities of the pass-through t ype guaranteed by the Government National Mortgage

Association under Section 306(g) of the National Housing Act under its management and liquidating function is a

function for which the Association may properly borrow from the Treasury.

It is the opinion of t he Treasury Department that the Association may properly borrow from the Treasury

for the purpose of assuring the timely payment of principal and interest on guaranteed pass-through type mortga ge-

backed securities as described in Chapter 3 paragraph 6 of the Mortgage-Backed Securities Guide dated December

1969. Accordingly, the Trea sury will make loans to the Association for the foregoing purposes under the procedure

provided in subsection (d) of Section 306 of Title III of the National Housing Act.

Sincerely,

DAVID M. KENNEDY

The Honorable George Romney

Secretary of the Department of

Housing and Urban Development

Washington, D.C. 20410