Prospectus - GNMA I MBS (Construction & Permanent Loan Securities)

• Legal Form Number: HUD-1731
• Issuer: Ginnie Mae
• Section: Ginnie Mae

Prospectus

Ginnie Mae I

Construction and Permanent

Loan Securities

U.S. Department of Housing

and Urban Development

Government National Mortgage Association

Estimated Amount $

Previous editions are obsolete. Page 1 of 10 form HUD 1731 (01/2016)

Appendix IV-10 ref. Ginnie Mae Handbook 5500.3, Rev. 1

% Ginnie Mae I Mortgage-Backed Securities

(Construction Loan Securities)

To Be Redeemed By

% Ginnie Mae I Mortgage-Backed Securities

(Permanent 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)

The securities offered pursuant to this prospectus (the “Securities”) are based on and backed by a

loan insured under FHA or guaranteed under RD Section (the “Loan”). The Loan is a

construction loan that will be automatically converted into a permanent project loan at the time it

is finally endorsed for insurance by the Federal Housing Administration (“FHA”), or it is issued

a conversion letter to the Loan Note Guarantee by the USDA Rural Development (“RD”). As of

the first day of the month following the conversion, the Construction Loan Securities will be

canceled, and the Permanent Project Loan Securities will be issued.

Issued by:

Gin

n

ie Mae Pool No. (Construction Loan Securities): Gin

n

ie Mae Pool No. (Permanent Project Loan Securities):

Issue

Date: Fir

st

Interest Payment Due:

Mat

u

rity Date (Construction Loan Securities): Mat

u

rity Date (Permanent

Project Loan Securities):

Dep

o

sitory:

The Fed

eral Reserve Bank of New York

Tran

sfer Agent:

Infor

m

ation concerning the project and the payment terms (including prepayment penalties, if a ny) of the

Mortgage on which the Securities are based is set forth in “Annex — Special Disclo sure.”

The Construction Loan Securities provide for timely payment of interest at the specified rate

until the Construction Loan Securities mature. The Issuer is obligated to commence payments of

interest on the Construction Loan Securities 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 Construction Loan Securities, whether or not such interest is

collected by the Issuer.

The Permanent Project Loan 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 on the Permanent Project Loan Securities by

the fifteenth calendar day of the second month following the final endorsement of the permanent

project loan for insurance by FHA, or issuance of the conversion letter to the Loan Note

Guarantee by RD, and to continue such payments every month thereafter over the remaining life

of the Mortgage, whether or not such interest and principal are collected by the Issuer.

Scheduled installments of principal will become payable as provided herein under “Payments of

Principal and Interest.” 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 Construction Loan Securities and principal and interest on the

Permanent Project Loan 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 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.

Previous editions are obsolete. Page 2 of 10 form HUD 1731 (01/2016)

Appendix IV-10 ref. Ginnie Mae Handbook 5500.3, Rev. 1