Prospectus - GNMA II MBS (Growing Equity Mortgages)

• Legal Form Number: HUD-11712-II
• Issuer: Ginnie Mae
• Section: Ginnie Mae

Prospectus

Ginnie Mae II

Growing Equity Mortgages

U.S. Department of Housing

and Urban Development

Government National Mortgage Association

Previous editions are obsolete. Page 1 of 9 form HUD 11712-II (01/2006)

Appendix IV-23 ref. Ginnie Mae Handbook 5500.3, Rev. 1

$

% Ginnie Mae II Mortgage-Backed Securities

(Growing Equity 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)

Issued by:

Ginnie Mae Pool No.:

First Payment Due:

Issue Date:

Maturity Date:

Depository: The Federal Reserve Bank of New York

Central Paying and Transfer Agent:

The securities offered hereby (the “Securities”) provide for the timely payment of principal and

interest on the twentieth day of each month, except as stated herein, commencing in the month

following the month of issuance. Interest will accrue on the Securities at the per annum rate

specified above; installments of principal will be payable in relation to payments of principal on

the underlying pool of mortgages described herein. The maturity date for the Securities is based

on the mortgage with the latest maturity. 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 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

Previous editions are obsolete. Page 2 of 9 form HUD 11712-II (01/2006)

Appendix IV-23 ref. Ginnie Mae Handbook 5500.3, Rev. 1

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 Ginni e 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

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 Government National Mortgage

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

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

It is the opinion of the 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 Housi ng Act.

Sincerely,

DAVID M. KENNEDY

The Honorable George Romney

Secretary of the Department of

Housing and Urban Development

Washington, D.C. 20410

Growing Equity Mortgages

The Securities are based on and backed by a pool of mortgage loans (the “Mortgages”) described

below. The Issuer has represented that the Mortgages are single-family, growing equity

mortgages (“GEM”) insured by the Federal Housing Administration (“FHA”) or guaranteed by

the Department of Veterans Affairs (“VA”). The term “mortgage,” as used herein, includes both

a note and the mortgage or deed of trust by which it is secured.