Prospectus - GNMA I MBS (Project Loan Securities)

• Legal Form Number: HUD-1724
• Issuer: Ginnie Mae
• Section: Ginnie Mae

Prospectus

Ginnie Mae I

Project Loan Securities

U.S. Department of Housing

and Urban Development

Government National Mortgage Association

$

Previous editions are obsolete. Page 1 of 8 form HUD 1724 (1/2016)

Appendix IV-9 ref. Ginnie Mae Handbook 5500.3, Rev. 1

% Ginnie Mae I Mortgage-Backed Securities

Issued by:

(Project Loan Securities)

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)

G

innie Mae Pool No.:

I

ssue Date:

F

irst Interest Payment Due:

F

irst Principal Payment Date:

M

aturity Date:

I

nsured Under FHA Section

or Guaranteed Under RD Section:

D

epository:

T

he Federal Reserve Bank of New York

T

ransfer Agent:

I

nformation concerning the payment terms (including prepayment penalties, if any) of the Mortga ge or

Mortgages on which the Securities are based is set forth in “Annex – Specia l Disclosure.”

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

specified rate and scheduled installments of principal. The Issuer is obligated to commence

payments of interest and any scheduled installments of principal by the fifteenth calendar day of

the month following the month of issue, except as stated below, and to continue such payments

every month thereafter over the life of the mortgage, whether or not such principal and interest

are collected by the Issuer. 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

Securities is guaranteed by Ginnie Mae pursuant to Section 306(g) of Title III 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 8 form HUD 1724 (1/2016)

Appendix IV-9 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 the timely payment of principal and

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

Association under Section 306(g) of the National Housing Act under its management and liquidatin g 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 Treasur y will make loans to the Association for the foregoing purposes under the proced ure

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

The Project Loans

The Securities are based on and backed by a pool of one or more mortgage loans (the

“Mortgages”) described below. The Issuer has represented that each Mortgage is a multifamily

mortgage secured by a completed project and insured by the Federal Housing Administration

(“FHA”) or guaranteed by the USDA Rural Development (“RD”). The term “mortgage,” as used

herein, includes both a note and the mortgage or deed of trust by which it is secured. Except as

otherwise disclosed in “Annex — Special Disclosure” (the “Annex”), the Issuer has also

represented that: